BM&FBOVESPA presents its new Corporate Sustainability Index (ISE) Portfolio
The new Corporate Sustainability Index (ISE) portfolio, which comprises shares issued by companies recognized for their high level of commitment to sustainability and social responsibility, will enter into effect on December 1st, 2009 and will be valid until November 30th, 2010. It contains 43 shares issued by 34 companies that represent 15 sectors and a market capitalization of BRL 730 billion, which corresponds to 32.21 % of the total market capitalization of all the companies listed on BMFBOVESPA (on 11/24/2009).
Three industry sectors have been included in this year’s portfolio: civil works, insurance, and machinery and heavy equipment. Of the 28 companies that composed the previous portfolio, 26 been reselected. The eight companies that were included are: Copel, Even, Itausa, Indústrias Romi, Redecard, Sul America, Usiminas, and Vivo. The previous ISE portfolio contained 36 shares issued by 28 companies from 12 different sectors. Aiming to reduce industry segment concentration, the new portfolio contemplates changes to the index’s methodology, which now limits sector participation to 15%. The previous methodology permitted up to 25% participation per company.
BM&FBOVESPA forms Real Estate Market Advisory Committee
BM&FBOVESPA has launched the Real Estate Market Advisory Committee, which aims to counsel the Exchange on matters concerning this segment, including the development of financial products based on real estate assets. The committee is composed by 20 real estate industry specialists, representing regulatory agencies, companies, entities, financial institutions, and law firms.
BM&FBOVESPA launches new website
The Exchange has launched its new integrated website, www.bmfbovespa.com.br. With a totally renovated design, the portal brings information about the Exchange, its markets, products and services, and regulation.
The website is available in English, Portuguese, Spanish, and Mandarin.
Exchange Traded Funds (ETFs) volume increases in 2009
BM&FBOVESPA offers ETFs that track the performance similar of IBOVESPA, IBR-X 50, Mid-Large Cap Index and Small Cap Index, indexes developed and calculated by the Exchange. These four instruments were issued and are managed by renowned institutions like the Brazilian Development Bank (BNDES) and Barclays Global Investors Brasil (BGI Brasil). They represent an alternative investment strategy for both local and international participants, providing investors with efficiency, transparency, flexibility and arbitrage opportunities. Options on BOVA11 are also available, as well as other BVMF Index futures products.
| Index Fund (ETF) | Underlying Index | Tracks… | Ticker |
| PIBB | IBrX-50 | Fifty most liquid shares of the cash market | PIBB11 |
| iShares Ibovespa | IBOVESPA | Companies representing 80% of the total trading value | BOVA11 |
| iShares MidLarge Cap | MLCX | Companies representing 85% of the total market value | MILA11 |
| iShares Small Cap | SMLL | Remaining companies not included in MLCX | SMAL11 |
From January to November 24, 2009 the trading activity of ETFs in BVMF totaled BRL 3.89 billion, 136% more than the value traded in 2008. Among these four securities, ETF BOVA11 has obtained the highest financial volume this year, with BRL 3.28 billion, and 32,890 trades.
Exchange creates Institutional Participant Relations Department
The goal of the new department will be to expand the sales activities relating to the segment of fund managers and institutional clients, including pension funds. This is an important step in consolidating BM&FBOVESPA’s strategy to expand its client base.
To head the new department, the Exchange has appointed Mr. José Antonio Gragnani as Institutional Participant Relations Officer. Mr. Gragnani has vast experience in the financial and government sectors
BM&FBOVESPA appoints new sustainability officer
The Exchange has appointed Ms. Sonia Favaretto to head its Sustainability Department. The principal mission of the department is to increase BM&FBOVESPA’s philanthropic activities, social responsibility programs, and stimulate employee participation of such projects.
Ms. Favaretto has a broad professional experience in the area of corporate social responsibility, having worked at Itaú Unibanco Bank and the BankBoston Foundation.
BEST Brazil road show meets Asian investors
The BEST – Brazil: Excellence in Securities Transactions road show promoted the Brazilian financial and capital markets to Asian investors, from November 23 to 26. Approximately 250 people attended the event, which visited Hong Kong, Tokyo, and Seoul, besides clients of local financial institutions that organized ten one-on-one meetings with BEST Brazil officials
During the event, representatives from ANBIMA, BM&FBOVESPA, and FEBRABAN conducted seminars on the Brazilian capital markets, especially the equities products available as investment opportunities. The Brazilian Market Profile is a comprehensive and in-depth analysis for international investors and was distributed at the road show.
BM&FBOVESPA announces earnings for third quarter of 2009
Net income of BRL 245.8 million increased 4.3% year-on-year, whereas adjusted net income of BRL 337.3 million rose 6.8% over adjusted pro forma net income for the three-month period to September 2008. 3Q09 net revenues of BRL 383.0 million contracted 6.5% from the same quarter one year ago. In a comparison of the nine months to September 2009, net revenues dropped 13.8% to BRL 1,077.8 million.
3Q09 operating expenses reached BRL 132.5 million, a 4.0%
decline from one year ago. As adjusted by items with no impact on cash flow, such as depreciation and the employee stock options plan, operating expenses for the quarter amounted to BRL 109.0 million, a 16.2% retreat from adjusted expenses for the same period one year earlier, and in line with the BRL 450.0 million target for 2009.
EBITDA totaled BRL 262.0 million for the third quarter, down 6.3% from 3Q08, and BRL 698.7 million for the nine months to September 2009, a year-on-year drop of 18.2%. The EBITDA margin kept a flat line in a comparison of the quarters to September 2009 (68.4%) and September 2008 (68.3%).
DMA trading volumes increases during the month of October
In October, Direct Market Access (DMA) trading of the derivatives market segment at the Brazilian Securities, Commodities and Futures Exchange – BM&FBOVESPA reached a total of 10,438,031 contracts traded, with 1,210,689 trades carried out through the GTS trading platform. In September, the total was 7,800,461 contracts traded in 731,377 trades. The volumes registered by access modality in October in comparison to the previous month are as follows:
Traditional DMA
5,590,649 contracts traded, in 516,459 trades, in comparison to 4,649,846 contracts traded and 455,580 trades;
Via DMA Provider
1,356,018 contracts traded, in 36,414 trades, in comparison to 1,217,992 contracts traded and 25,793 trades;
DMA via order routing with CME Globex (CME Group’s electronic trading platform)
3,246,598 contracts traded, in 617,938 trades, in comparison to 1,785,549 contracts and 233,953 trades.
DMA via co – location
244,766 contracts traded, in 39,878 trades, in comparison to 147,074 contracts traded, in 16,051 trades.
BM&FBOVESPA market performance – October 2009
BM&F Segments
Derivatives markets in the BM&F segment (including financial and commodities derivatives) totaled 34,670,732 contracts and BRL 2.38 trillion in volume in October. That compares to 31,505,077 contracts and a volume of BRL 2.12 trillion in September. The daily average of contracts traded in the derivatives markets in October was 1,650,987, compared to 1,500,242 in the previous month.
Financial Derivative
Interest rate futures (ID) totaled in October 12,104,485 contracts traded, in contrast to 12,469,090 in September. The US dollar futures ended the month totaling 7,033,995 contracts compared to 5,959,815 contracts in the previous month. The Ibovespa futures traded 2,304,720 contracts in September, compared to 1,443,420 in the last month. The Euro futures contract (EUR) registered 14,970 contracts, in contrast to 5,330 contracts in September.
Agribusiness Derivatives
In October, the BM&FBOVESPA agribusiness derivatives market (including futures and options) totaled 197,101 contracts traded, compared to 151,582 in September. Agribusiness markets totaled 61,356 open interest contracts at the end of the last trading day of October. In September, these contracts totaled 74,238.
BOVESPA Segments
In October, equity markets (Bovespa segment) registered historic marks in financial volume daily averages, which totaled BRL 7.34 billion, with 436,250 trades. The October volume was BRL 154.25 billion, with 9,161,252 trades. Home Broker, a web-based equities trading system, set six trading records, and reached its highest trading volume ever with BRL 60.99 billion and the number of individual investor accounts came to 555,768 for the first time.
Source: BM&FBOVESPA, 01.12.2009
Filed under: BM&FBOVESPA, Brazil, Exchanges, Latin America, News , Trade Connectivity, Order Routing, Exchanges, Brazil, DMA Direct Market Access, Commodities, Derivatives, ETF, Index, Climate, BM&FBOVESPA, Algo Trading, Futures and Options, Co-Location, Financial Report, financial futures, Currency, Environment, Regulation
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