BM&FBOVESPA
 Securities, Commodities and Futures Exchange

BM&FBOVESPA S.A. - Securities, Commodities and Futures Exchange was created in 2008 with the integration between the Brazilian Mercantile & Futures Exchange (BM&F) and the São Paulo Stock Exchange (Bovespa).

 

Together, the companies have formed one of the largest exchanges in the world in terms of market value, the second largest in the Americas, and the leading exchange in Latin America. In today's global scenario, in which responding quickly to transformation has become a competitive asset, BM&FBOVESPA is an attractive investment option with cost efficient trading fees.

 

Among its broad range of trading products, the new Exchange offers equities, securities, financial assets, indices, interest rates, agricultural commodities, and foreign exchange futures and spot contracts.

 

Mission Statement

 

As a leader in the Latin American market of equities and derivatives, BM&F BOVESPA's mission is to act in the macroeconomic growth dynamic of the Latin American market and position, not only the Exchange, but also Brazil as an international financial hub for equities, commodities, and other financial instruments, with operational excellence and socially responsible attitudes.

 

Activities

 

BM&FBOVESPA is much more than just a marketplace. In addition to trading equities, securities and derivatives, it also undertakes the following activities: Listing companies and funds; disseminating price quotes; launching market indices; developing systems and software; implementing technological advances, and much more. All of which effectively contribute to Brazil’s economic growth.

  

 

Opportunities are great. Challenges are even greater. But BM&FBOVESPA is capable of competing with any other exchange in the world for local and international investors. It has every bit of the credibility and transparency needed to ensure market access to a full range of investors, from individuals to international funds.


Clearinghouses


CBLC renders clearing, settlement, risk management, central depository and securities lending services. It acts as a central counterparty for the transactions carried out on the equities and corporate fixed-income securities markets, making and receiving payments, and providing safekeeping for all the securities and assets traded at the Exchange.

 

The Derivatives, Foreign Exchange and Securities Clearinghouses offer registration, clearing, settlement and risk management services for the transactions carried out on the derivatives, interbank US Dollar and federal government securities markets, respectively, providing efficient mechanisms to cover a default by one or more participants.

 

BSM


Bovespa Market Supervision (BSM) is responsible for monitoring the transactions and activities performed by market participants and clearing and/or custody agents at the CBLC. It is also responsible for managing the Investor Compensation Mechanism (MRP).


BM&F Settlement Bank


The activities performed by the BM&F Settlement Bank are restricted to the transactions executed and/or registered in the BM&FBOVESPA trading environments. In 2008 the settlement services provided by the BM&F Settlement Bank amounted to BRL3.4 million.


Brazilian Commodities Exchange


Through the Brazilian Commodities Exchange, BM&FBOVESPA enables the commercialization of agricultural products and offers services for the public sector by means of its electronic auction system and for the private sector by means of its private system for the acquisition of goods and services.

 

 

Markets

 

BM&FBOVESPA markets include equity, securities, derivative, fixed income, and OTC registration.  

 

 

Equity and Corporate Fixed Income 

  • Stocks
  • Brazilian Depository Receipts (BDR)
  • Exchange Traded Funds (ETF)
  • Real State Investment Trust (REIT)
  • Investment Funds and Real State Receivables
  • Corporate Bonds
  • Commercial Papers
  • Share Receipts

 

Agricultural Derivatives 

  • Crystal Sugar
  • Cotton
  • Feeder Cattle
  • Live Cattle
  • Arabica Coffee
  • Robusta Conillon Coffee
  • Ethanol
  • Corn
  • Soybean

 

Financial Derivatives  

  • Gold
  • Stock Indices (Ibovespa, IBrX-50)
  • Inflation Indices (IGP-M, INPC, IPCA)
  • Foreign Exchange Rate
  • Interest Rate
  • Sovereign Debt Instruments

 

Mini Contracts  

  • Live Cattle
  • Coffee
  • Dollar
  • Ibovespa

 

OTC 

  • Forward
  • Swaps

 

Spot Dollar 

  • With settlement in T+0, T+1, and T+2

 

Government-Issued Securities 

  • Floating, fixed and indexed to inflation and foreign exchange rates  

 

 

SERVICES

 

BM&FBOVESPA has advanced technological resources in order to provide service in an efficient and secure manner to investors. Most bid and ask orders are processed electronically, allowing a better price formation and transparency in exchange transactions. An open outcry trading floor is available for the derivatives market (futures and commodities).

 

BM&FBOVESPA Communication Network – RCB

 

The RCB is an open communication network for the connection of market participants to the Exchange’s electronic trading systems.

 

The exclusive purpose of this communication network is to serve electronic trading, that is, the broadcast of market data and the transmission of trading orders. The RCB infrastructure delivers high-speed, high-capacity data transmission, in order to meet all the demands related to the growth and ever increasing degree of sophistication required by electronic trading.

 

When contracting the RCB network services, participants can make the following choices at their own discretion:

 

  • The telecommunication service provider(s) (carrier(s)), from among those certified by BM&FBOVESPA;
  • The data transmission technology to be used;
  • The network capacity/speed, from 2 Mbps to 1 Gbps; and
  • The contingency/availability resources from the adopted infrastructure.

 

Technology

 

The RCB infrastructure delivers high-speed, high-capacity data transmission, in order to meet all the demands related to the growth and ever increasing degree of sophistication required by electronic trading.

 

  

Trading Platforms

 

Investors also have the option of placing orders online, via the internet, have access to quotes and follow up on the Exchange’s different markets. The Exchange’s principal systems are:

 

Mega Bolsa


High performance electronic platform: 99.5% of orders sent to the system take less than 0.62 seconds to be processed.

 

GTS – Global Trading System


Using the most modern capacity and order processing requirements, the GTS has advanced connectivity solutions, developed based on the FIX protocol, the current standard for electronic communications, executing 250 transactions per second.

 

Direct Market Access (DMA)


The Direct Market Access (DMA) model allows end customers to have direct access to the Exchange’s electronic trading environment. This access is granted by a brokerage house and maintained under its responsibility, allowing end customers to send their own orders to the trading system, as well as receive market data in real time, including the electronic trading system’s order book.

 

Home Broker


A system that allows the investor to send orders, through a brokerage house, directly to Mega Bolsa. It was created to facilitate and speed up the trading process, thus attracting more individual investors to the stock market.

 

Web Trading


Mini futures contracts trading system via the internet. Investors can place orders directly in real time, through communications software installed in the brokerage house.

 

 

Social Responsibility

 

BM&FBOVESPA is a company strongly committed to social and environmental responsibility, participating in such initiatives as the UN’s Global Compact, a framework for businesses that aims to promote sustained economic growth worldwide and social inclusion. Some of the Exchange’s initiatives are:

 

Institutional Support


Offers support to charitable institutions by donating equipment, apparel and other products, and by granting educational sponsorship.

Job Training Association


The association is committed to promoting job training among low-income youngsters between 15 and 20 years of age. The objective is to encourage social inclusion, by strengthening the teens’ self-esteem, ethical values, and their rights and duties as young adults.

Environment and Social Investment Exchange (BVS&A)


The BVS&A is a world pioneering program designed to support Educational and Environmental projects by Brazilian NGOs. Since its creation in 2003, BVS&A has donated BRL 8.02 million directed at implementing 61 projects.

Noberto Bobbio Research Center


The center promotes the legacy of the Italian master Noberto Bobbio in Brazil and studies and debates related to democracy and citizenship. The center has a library with more than one thousand books, including the complete works by Bobbio, which can be consulted for free.

Athletics Club


The club has 90 athletes specializing in such track and field modalities as running, long and high jump, shot put, discus throw, among others. The club offers the athletes financial support and all the training and infrastructure for the athletes to develop their skills.

Sports and Cultural Space


The Sports and Cultural Space, located in Paraisópolis, São Paulo, has a sports court and a library, and offers sports training, after school tutoring, art, music, and ecology classes for approximately 800 children and youngsters between 6 and 18 years old. The BM&FBOVESPA Cultural Space, located in downtown São Paulo, offers art exhibitions from Brazilian and international artists, with free admission to the general public.

 

Corporate Sustainability Index – ISE


ISE is a benchmark in the Brazilian market for socially and environmentally responsible investments; and promotes sustainable practices in business.

In Good Company


This website, www.emboacompanhia.com.br, brings together projects of companies listed on the exchange that operate in a socially responsible way, in order to provide greater visibility to these projects.


Global Compact


BM&FBOVESPA is the first Global Compact signatory company, an initiative by the United Nations intended for the private sector, jointly with the United Nations’ agencies and social players, to contribute to the advancement of social corporate responsibility practices, thereby building up a more sustainable and inclusive global economy.

 

 

BOARD OF DIRECTORS

Chairman: Arminio Fraga Neto

Vice-chairman: Marcelo Fernandez Trindade

Board Members

Candido Botelho Bracher

Claudio Luiz da Silva Haddad

Craig Steven Donohue

Fabio de Oliveira Barbosa

José Roberto Mendonça de Barros

Julio de Siqueira Carvalho de Araújo

Luis Stuhlberger

Renato Diniz Junqueira

René Marc Kern

 

EXECUTIVE BOARD

Chief Executive Officer: Edemir Pinto

Chief Clearinghouse, Depository and Risk Management: Amarílis Prado Sardenberg

Chief Financial Officer: Carlos Kawall Leal Ferreira

Chief Operating Officer: Cícero Augusto Vieira Neto

Chief Business Development Officer: Paulo de Sousa Oliveira Júnior

Chief Products Officer: Marta Alves

 

 

 

 

The services rendered by BM&FBOVESPA and the list of BM&FBOVESPA’s

Member Firms are available at the site www.bmfbovespa.com.br.

 

For additional information please contact:

 

BM&FBOVESPA – Securities, Commodities and Futures Exchange

Praça Antonio Prado, 48

01010-901 - São Paulo, SP - Brazil

Telephones: (5511) 3119-2000 - Fax: (5511) 3107-9911

Site: www.bmfbovespa.com.br  -  E-mail: bmfbovespa@bmfbovespa.com.br

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