What is going on in brazil
-
Upload
cfn-services -
Category
Business
-
view
337 -
download
3
Transcript of What is going on in brazil
WhatisgoingoninBrazil?JudyMisbinMayAugust1,2011BM&FBOVESPAisaBraziliancompany,createdin2008,throughthecombinationoftheSãoPauloStockExchange(BolsadeValoresdeSãoPaulo)andtheBrazilianMercantile&FuturesExchange(BolsadeMercadoriaseFuturos).ItisthemostimportantBrazilianinstitutionforintermediateequitymarkettransactionsandtheonlysecurities,commoditiesandfuturesexchangeinBrazil.BM&FBOVESPAfurtheractsasadriverfortheBraziliancapitalmarkets.TheBM&FBOVESPAvolumeshavemorethanquintupledinjustsixyearsanddailytradingvolumesareexpectedtohit6.5billionperdaybyendof2011.AccessTypesofDirectMarketAccess(DMA)availableforBM&FBOVESPA
• DMA1‐CustomertradesontheMegaBolsaSystemviabrokeragehouse• DMA‐2‐Customerconnectsdirectlytothetechnologystructurepartneringwithan
authorizedaccessproviderorbroker,suchasCFNServices,GL‐NetorMarcoPolotoaccesstheexchange,allowingthemtotradethroughmultiplebrokerssuchasLinkInvestimentos
• DMA‐3‐Clientconnectstothetechnologystructureviaadirectconnection• DMA‐4‐Clientproximityhoststheirinfrastructurewithintheexchangesdatacenterand
connectstotheexchangeviaacrossconnectTheBrazilianregulatorylandscapedoesnotprovidefornakedaccessbutinsteadthereareregulatoryrequirementsthatallclientshavetogothroughpre‐tradecreditcontrols.FortheDMA1andDMA2models,thebrokerisresponsibleforcheckingordersagainstpre‐definedlimits,whereaswithDMA3andDMA4,theexchangeprovidesthepre‐tradecreditcontroltoolforthebrokerstoconfigureandcontroltheircustomers’limitsTaxIssuesInOctober2009a2%taxtoforeignerswasintroducedandthesubsequent1.5%taxaddedtoAmericanDepositoryReceipts(ADRs).BM&FBOVESPAbelievesthatthegovernmentisnotmullingfurthertaxmeasurestokillthegoldengooseofcapitalmarkets.Afterall,itwantsinvestorstopayforthecountry’shugeinfrastructureneeds.Theyincludethestadiums,airports,localtransportionandhousingassociatedwiththe2014WorldCupand2016Olympicsaswellasthe$225billioninpre‐saltcapitalizationforPetrobras.InspiteoftaximplicationsoftradinginSaoPaulo,BM&FBOVESPAhasbeenseeingunprecedentedincreaseintradingvolumesfromInternationalfirms.CompetitionAccordingtoJohnRumsey,whostates"InvestorsexpecttoseealternativetradingplatformsemergetochallengeBM&FBOVESPAandexpectthattheirintroductionwillhaveasubstantialimpactonpricing.Theregulator,theComissãodeValoresMobiliários,isseenaskeentoencouragetheproliferationofnewplatformsandBrazilianlegislationallowsthem.”Brazilisaripemarketforinvestorslookingtofindnewliquidity.WithprotectionsalreadyinplacethatmeetthestandardsoftheFrank‐DoddAct,activelobbyingtoaddresstaxissuesforinternationaltraders,andtheupcomingWorldCupandOlympics,Brazilisnotamarkettoavoid.SummaryTakeadvantageoffullymanagedsolutionsfromCFNServices'AlphaPlatform™,toreceivethelowestlatencyconnectivityfromanyglobaltradingvenue.Takeawayconcernsaboutcustomsclearing,managingforeigncountrycontracts,findingabrokerorauthorizedaccessproviderbylettingtheAlphaPlatform™takecareofasmuchoraslittleofthoseservicesthatyourequire.Getinearlytotakeadvantageofthetechnologyrefreshprogram,whichwillprovideexistingAlphaPlatform™clients,theabilitytoshavemicrosecondsoffthealreadylowestlatencyavailable.
LinkInvestimentosJoinsCFNServices’AlphaAlliance™toprovidelowestlatencymarketaccesstoBM&FBovespaExchange