BM&F’s 2008 merger with São Paulo’s Bovespa created the world’s third largest stock exchange, catapulting the group to a position of global influence. Tom Osborn meets the man driving the bourse's international expansion.
"The only problem that Brazil faced during the crisis was
with the OTC markets," says Paulo de Sousa Oliveira, chief
business officer of BM&F Bovespa. "In the exchanges, we
have tough self-regulation."
The unusual structure of Brazil’s financial
markets was little known outside the country until 2008. But in
the ferment of ideas that has followed the financial crisis,
the Brazilian model has attracted considerable attention.
The country combines vibrant and vigorous markets with a
strict regulatory regime, in which all over the counter
derivative and corporate bond trades must be registered with a
central depository, Cetip. The São Paulo stock exchange,
Bovespa, merged with the derivatives exchange, Bolsa de
Mercadorias e Futuros, in 2008, forming one powerful central
marketplace for listed instruments.
Brazil is also being proactive about looking for
improvements in regulation. Next month a new derivatives
council, set up by the Brazilian Banking Federation, will begin
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