September 1, 2010 • 11:35 pm 0

Brazil: US economy still in the spotlight – September 2010- IXE BANIF – Monthly Analysis

Little hope for a short-term change in the economy

For September, we foresee that attention will continue focused on the US economy, which has been showing signs of weakness since the beginning of 2H10. This expectation is the same we had for August, which proved to be correct. The main event we highlight for September is the FOMC meeting on the 21st, which might raise market expectations of new measures to improve economic growth. The latest statement on the economy from the President of the Central Bank mentioned that the Bank is ready, if necessary, to intervene to adjust the economic trend. However, its portfolio of potential measures is, in our view, limited due to the current low level of interest rates. Meanwhile, data released on housing, payroll and investment are likely to drive the market in the ST.

Concerning the rest of the world, we believe that Europe will continue out of the spotlight, with Germany leading the local economy well. We believe that the only negative in the month could come from China, which has been releasing some mixed and inconclusive data lately.

In September, with little change in the scenario and no major event in sight, we expect the market to move sideways and with less volatility. Therefore, we decided to maintain our defensive view and keep the core of our previous portfolio. We have added Tietê, MRV and EZ Tec, increased the weight of Petrobras (from 15 to 20%) and reduced the weight of Eletropaulo (from 10 to 5%). We have withdrawn B2W (weak 2Q results without good ST expectations), CSN (due to its deteriorated ST outlook) and Tegma (stellar performance in the month).

Petrobras is the month’s highlight

Last month, we predicted that the start of the political TV campaign in August, at presidential level, would be exciting and move the markets. The reality proved to be very dull, with the Labor Party’s candidate having the unquestionable advantage and no response at all from any of the main financial markets: equity, interest rate and FX. In September, we believe that Petrobras’ capital increase operation will be the highlight. The weak performance of the company’s shares in the past 1.5 years contributed to holding down the Ibovespa. We believe that, after the capital increase, they can have the opposite effect.

When it comes to economic data, we believe the two most important events of the month will take place in the first week. These are the Copom meeting on the 1st and the 2Q GDP report on the 3^rd. We expect an unchanged Selic rate of 10.75% for the former and a 1% change for the later (QoQ seasonally adjusted, or around 8% YoY).

Read full analysis Brazil – Monthly Allocation – September 2010

Source: IXE-BANIF, 01.09.2010

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August 31, 2010 • 11:51 pm 0

BMV Mexican Stock Exchange Rebalancing of IPC and adustment of MSCI Country Index

The BMV Mexican Stock Exchange – IPC index will be rebalancing go into effect as of today’s ( Tuesday 31.08.2010) close.

The IPC names that will be added to the index are: ICHB, CHDRAUIB, LABB and ARCA. The names that will leave the index are: GFAMSA,AUTLAN and ASUR.

MSCI country Index will also rebalance and go into effect as of today’s ( Tuesday 31.08.2010) close.

Mexico is expected to be the market with the largest recipient of inflows. Among the names that will have the largest positive impact are: AMX and WALMEX, while ALFA is expected to have the largest negative impact (albeit marginal).

Source: IXE 31.08.2010

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August 21, 2010 • 11:56 pm 0

Brazil: BM&FBOVESPA Monthly News August 2010

BVMF NEWS – August 2010 Complete and Detailed Version

CVM authorizes BM&FBOVESPA to implement new DMA modalities in the Bovespa segment
New Fee Policy for High-Frequency Traders (HFT)
BM&FBOVESPA presents new financial education campaign
Itaú Unibanco S.A. is selected to manage the Financial ETF
Reduction in the round lot for ETFs to facilitate the access of individual investors
Deadline extended for approval of amendments to the listing rules for the special listing segments
On August 13th BM&FBOVESPA announced its 2010 second quarter earnings
MARKET RESULTS – BM&F Segment July 2010
MARKET RESULTS – BOVESPA Segment July 2010

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August 3, 2010 • 6:52 am 0

Brazil: Market now with eyes on US growth – August 2010- IXE BANIF – Monthly Analysis

Spotlight moves from the euro zone to the USA

In August, we foresee the financial markets moving their attention from the euro zone to the USA. We also expect China not to have much influence on market performance this month. The results of the bank stress test released in July seem to have calmed the market and caused fears of bankruptcy to fade. The data did not indicate that problems are over, but left the feeling that they are under control with the adjustments made so far. On the other hand, the hopes that the US economy would gain momentum have diminished after the FED’s Presidential speech at the end of July. Given this, we believe that published economic data are likely to drive the market, as they will give a better idea of trends. However, as we do not foresee any data released this month as important enough to change expectations, we believe the market is likely to move sideways.

Brazil – Monthly Allocation – August 2010

Last month, we foresaw a volatile market with no trend for July and based on this belief, compiled our portfolio with a defensive view. Despite this estimate, the market did rally and our portfolio followed the trend, demonstrating that it was able to perform well in upward as well as volatile movements. For this reason, we decided that, as we do not identify any definite catalyst driving the market in August, we would change our portfolio very little and continue our defensive view. We have reduced the weights on Bradesco and Hering (from 10% to 5% each) due to their recent stellar performance. We have also substituted Tietê for Eletropaulo, with the same weight, and added Telesp.

Focus on slowdown of US economy

The latest indications of a slowdown in the US economy point to a 2.5% GDP growth for 2010, from a previous 2.7%. This reduction, although immaterial, cooled down previous expectations of upward revisions in estimates and turned attention to stimulating growth. On August 10, attention should focus on the FOMC meeting to see if a change in the monetary policy is possible. However, with interest rates already close to zero, there is probably little to be done on this front. Monitoring the labor market (unemployment and payroll) is perhaps the best hope for investors to find economic improvement.

The real start of the Brazilian Presidential race

On August 17, presidential candidates will start their TV campaigns. Although candidates have been campaigning on the road for a while, many people see TV campaigns as the most important and decisive part of the presidential race, so voting polls that start after this are closely followed and should affect the market. Another potential source for market stress is the end of the low inflation period (last two months, caused by food prices) that we foresee for August. Although we expect inflation to remain at around 0.4% per month until December, people may view any rebound negatively.

Source: BANIF – IXE, 02.08.2010

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July 21, 2010 • 2:17 am 0

Brazil: BM&FBOVESPA Monthly News July 2010

Proposed amendments to the listing rules for BM&FBOVESPA special listing segments
These proposals are subject to review by the listed issuers, who have until August 6 to comment. The revised listing rules are expected to take effect in November, after the closed hearing and final approval.

Offerings raise BRL 22.5 billion on BM&FBOVESPA in first seven months of 2010
This was double the proceeds raised in the corresponding period of 2009.

Brazilian presidential candidate Marina Silva meets with representatives of the international financial community in New York
The objective of this meeting is to discuss the guidelines for Brazil’s 2011 development plan. This event will be held at 10:30 a.m. on July 22, 2010 in New York City.

Volumes and Trades by Direct Market Access (DMA)
In June, the BM&F segment posted a trading volume of BRL 117,086,953,000 from 12,189,291 trades, in comparison with a volume of BRL153,982,431,000 and 14,667,970 trades in May.

BM&FBOVESPA, IDB and World Bank discuss challenges related to carbon financial instruments
The meeting allowed financial institutions to exchange experiences on the carbon markets in Latin America and the Caribbean (LAC).

Citigroup selected to manage process for Unsponsored Level I Brazilian Depositary Receipts
After the official opening of bid proposals, Citigroup Brazil is authorized to request the registration of 10 (ten) Brazilian Depositary Receipts.

Exchange Traded Funds (ETFs) attract even more individual investors
The participation of individual investors in ETFs rose from 15.5% in May to 23% in June. Volume totaled BRL515.30 million from 12,083 trades in June

Corporate Sustainability Index (ISE) completes five years with enhancements to portfolio
The companies listed on ISE are recognized for their high level of commitment to sustainability and social responsibility.

BM&FBOVESPA receives Investment Grade Rating From Moody’s
The upgrade reflects the company’s low level of financial leverage, key credit strength and good financial flexibility, which can be preserved even with long-term debt in its capital structure

MARKET RESULTS – BM&F Segment June 2010
The derivatives market segment totaled 43,313,807 contracts and BRL2.87 trillion in volume. Average daily trading volume in the derivatives markets was 2,062,562.

MARKET RESULTS – BOVESPA Segment June 2010
The equities market segment traded BRL122.6 billion in 8,371,028 trades, with daily averages of BRL5.84 billion and 398,620 trades.Complete Report BVMF NEWS July 2010

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July 4, 2010 • 11:42 pm 0

Brazil: Scenario Unchanged – July 2010- IXE BANIF – Monthly Analysis

Focus still on the euro zone

For July, we believe the focus will continue to remain mainly on Europe. Banks in the region, particularly in most of the more fragile PIIGS group (Portugal, Italy, Ireland, Greece and Spain), apart from Italy, have recently had limited access to financial markets and remain dependant on local Central Banks to access cash. This situation on its own is uncomfortable, remaining as a source of tension to a market that remains volatile. We expect volatility to continue in July and still do not see any indication of a trend. This is exactly the same view we had for June and, consequently, our suggested portfolio has changed little. We have withdrawn Drogasil, one of the largest winners; reduced the weight of CSN (from 10 to 5%); increased the weight on Hering (from 5 to 10%) and included B2W. With these alterations, we continue using the Ibovespa weights for the oil, mining, banking and transportation industries, remaining overweight for the retail and utility sectors. Brazil – Monthly Allocation – July 2010

Outlook for the euro zone: uncertain and unequal

The G-20 meetings resulted in the decision to halve deficits by 2013 and start decreasing debts from 2016. However, each country is free to decide on the balance between cuts and economic incentives. In Europe, we are facing a catch 22 situation: everyone agrees on the need for cuts, but most people do not want to implement them for fear of an economic slowdown, as perceptions are that growth is more essential. We believe that if only the feared slowdown occurs in Europe it would have little impact on local economic growth, as exports rather than local demand drive economic growth.

Silver linings to the dark clouds

For the rest of the world, we highlight the USA, China and Brazil. Although recently released economic data in the US came slightly below expectations, it is not indicative of a reversal of the trend towards a slow recovery. A conclusion of the details for the reform in the financial system may take place in July, leaving room for welcomed practical measures. In China, we expect growth to continue unchanged, balancing the still difficult situation of the developed world. In Brazil, we expect inflation data for June to be as low as that of May. We also see a transition time for GDP estimates, with a continued gathering of data to support either a revision or confirmation of the current 2H10 and 2011 expectations, which are currently good.

Source: IXE BANIF, 02.07.2010

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June 29, 2010 • 11:49 pm 0

BM&F BOVESPA News June 2010

“Brazil Easy Investing” will allow foreign investors to order routing in their local currencies
BM&FBOVESPA and Chi-X Global are jointly developing an order routing software designed for the trading of Brazilian equities in foreign currencies.

Launch of five new Currency Futures Contracts in the BM&F segment for trading
Australian Dollar (AUD), Canadian Dollar (CAD), Japanese Yen (JPY), Pound Sterling (GBP) and Mexican Peso (MXN) contacts are authorized for trading.

DMA trading reaches historic levels in the BM&F segment
Derivatives trading via Direct Market Access (DMA) set a new record in May, with 20,949,961 contracts traded in 3,040,357 trades. Other records were set during the same period.

Bidding Process for the selection of a manager for the new financial ETF
Interested financial entities must submit their proposals by no later than July 19th. The winning bidder will be the entity that provides the highest value commitment.

Important agreement to stimulate the relationship between entrepreneurs and investors
The partnership of BM&FBOVESPA and São José dos Campos Technology Park hopes to establish a culture of entrepreneurship and innovation, through professional training.

Brazil elected as the most trustworthy country among the developing nations for doing business
A survey of investors from all over the world showed that they considered Brazil to be the developing country with the best corporative governance.

WFE Working Committee Meeting will be hosted by BM&FBOVESPA
BM&FBOVESPA will host the World Federation of Exchanges (WFE) Working Committee on July, 1st and 2nd, in São Paulo. Main topic to be discussed will be “Sustainable Investment”

Corporate Sustainability Index (ISE) completes five years with enhancements to the next portfolio
The companies listed on ISE are recognized for their high level of commitment to sustainability and social responsibility.

MARKET RESULTS – BM&F Segment May 2010
The derivatives market segment totaled 52,063,826 contracts and BRL3.57 trillion in volume. The average daily trading volume in the derivatives markets was 2,479,230.

MARKET RESULTS – BOVESPA Segment May 2010
The equities market segment reached a total volume of BRL152.93 billion, in 10.261.145 trades, setting a new record, with daily averages of BRL7.28 billion and 488,626 trades.

Source: BM&FBOVESPA, 30.06.2010

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June 2, 2010 • 3:10 am 0

Brazil: Volatile Market with no Trend – June 2010- IXE BANIF – Monthly Analysis

Focus spread over euro zone
Last month, we correctly anticipated that the Greek problem would negatively dominate the markets. However, we did not anticipate that fears would spread severely over to other countries, especially the other PIIGS members (Portugal, Italy, Ireland and Spain). After the sharp negative effect on all markets worldwide, we believe that investors continue to be sensitive, with wounds still open and, in the absence of any concrete positive news in June, markets are likely to remain tense, volatile and with no definite short-term trend. This expectation only differs from our view for the previous month in the lack of trend. We chose our suggested portfolio last month to remain defensive, and believe this is also the best choice for June, which is why we have made hardly any modifications. We have only withdrawn Tim, which was the month’s largest winner, and transferred its weight to CSN to keep the weight of the steel industry close to its weight in the Ibovespa. With this move, our portfolio has weights similar of those at the Ibovespa for the oil, mining, banks, steel, transportation and telecom industries, while we keep retail and utilities overweight.

Euro zone pros and cons
For the Euro zone, we highlight some important points. Positives: a) Economic activity in the main countries is not weak; b) Announcement of important measures directed toward stability in Portugal, Spain and Italy. Negatives: a) growth is likely to remain low for at least the next few years; b) risk rating downgrades might occur, particularly for banks, if tension continues at its current level or worsens and c) country debts are likely to stabilize at high levels. From 2008 to 2013, gross debt to GDP ratio will increase in most countries. Based on the assumptions of the European Commission, this ratio for Portugal should go from 66% to 90%, for Spain from 40% to 75%, Ireland from 44% to 93%, Italy from 106% to 118% and Greece from 99% to 135%.

Signs from other regions remain positive
In other regions, the economic trend continues to improve. In the US, the Fed revised its GDP growth estimate upwards to 3.5% for 2010 and we believe recovery is likely to continue slowly but surely. In China, the economy continues strong and on the verge of overheating, although inflation has not surpassed the official 3% limit and we see no reason for any change in course. Finally, in Brazil we also see strong signs of good and unchanged economic activity. At the announcement on June 8 of 1Q GDP we expect a 2.5% non-annualized growth that, if confirmed, would strongly support our estimate of a 7.0% growth for FY2010. On June 9, we anticipate announcement of the IPCA inflation index for May, which we expect to reach 0.45% (for June figures we expect a sharp reduction to around 0.3% that, if confirmed, would increase confidence in the growth trend of the GDP). On the same day, we expect announcement of the official Selic interest rate, when we anticipate another 0.75% hike as part of a measure to avoid the deterioration of the outlook for inflation.

See full report Brazil_-_Monthly_Allocation_-_June_2010

Source: IXE Banif, 01.06.2010

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May 5, 2010 • 12:09 am 0

Brazil: Greece to drive correction and volatility – May 2010- IXE-BANIF Monthly Analysis

Focus on Greece

In May, problems in Greece are likely to call everyone’s attention to negatives. The market has been testing the country’s fundamentals to an extent that has caused, among other things, a sharp increase in the cost of money and a downturn in risk rating. With this deteriorating situation, the debt rollover, which we previously thought to be the main problem, has moved down in the scale of importance. However, on May 19, a significant share of the Greek debt portfolio will fall due and need rolling over. Therefore, the financial market will focus on this particular event in the first weeks of the month. At this point, however, other more serious factors pertaining to the Greek situation are at stake, including its commitment and capacity to reduce fiscal debt, its ability to pay/rollover LT debt over the next two years and its continued membership of the Euro community. Adding to the Greek problem, other countries in the Euro zone with similar, although less acute, debt problems are also suffering from growing tension in the international credit market. At the end of April, for instance, S&P downgraded both Portugal and Spain’s credit ratings, following Fitch’s downgrade of Portugal in the previous month.

Brazil – Monthly Allocation – May 2010

Fortunately, there are positive factors to consider

While the Greek problems remain the main negative factors to consider, all other main drivers fall on the positive side. Locally, economic activity continues strong and we recently increased our GDP growth estimate to 7%, with growth currently running at the 8% level. The recently approved 0.75% increase in the Selic basic interest rate is the beginning of the Central Bank’s effort to curb rising inflation, the unwanted side of economic growth. Abroad, the Chinese economy overheats, with GDP growth running at around 12%, while our expectation for 2010 is 11.5%. In the USA, we note the first signs of recovery in the labor market, with the unemployment rate apparently coming out of the trough. Even in Europe (Euro zone), the eye of the current storm, economic activity and business confidence are recovering, although this is based more on exports, as local demand remains weak.

Optimism likely to bounce back and forth

Because of the influence of these opposite drivers throughout the month, we expect significant volatility for the equity market. We feel that the general trend might be flat to slightly negative during May, as we do not foresee an easy or fast solution for the Greek issue. Our suggested portfolio for May reflects this view with an increase in the number of defensive names and a somewhat expanded number of shares. We included three new names (Tegma, Hering and Tiete), reduced the weight of one share (CSN from 10% to 5%) and withdrew two names (Eletropaulo and MMX). Despite these changes, we maintained the core of our portfolio, with 80% of its total weight untouched.

Source: Banif-IXE, 03.05.2010

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April 21, 2010 • 8:50 am 0

BM&F BOVESPA News April 2010

BRAiN initiative turns Brazil into an international hub for investments

Aiming at strengthening Brazil’s position as a potential investment and business hub, with regional focus on Latin America, BM&FBOVESPA, ANBIMA, and FEBRABAN announced the creation of a new association entitled BRAiN – Brasil Investimentos & Negócios (Brazil Investments & Business). It represents several sectors of society and relies on the sponsorship and participation of various private sector institutions to promote Brazil as an important financial hub. Paulo Oliveira Jr., BM&FBOVESPA’s former Chief Business Development Officer, is now the Chief Executive Officer of BRAiN. For further information, access www.brainbrasil.org.br

Visit BM&FBOVESPA at Tradetech London – booth 61

BM&FBOVESPA is joining TradeTech Europe – the 10th Equity Trading and Technology Summit to be held in London’s Excel Centre, on April 21st and 22nd. BM&FBOVESPA will promote its products and services at booth 61, and its Director of BM&FBOVESPA (UK) Ltd, Cathryn Lyall, will participate in the panel “Assessing The Best Opportunities For Trading In The Emerging Markets – DMA vs. Other Options”, on April 21, at 3:00 p.m. Ms. Lyall will be discussing the best investment opportunities in Brazil. Please find additional information at http://www.bmfbovespa.com.br/en-us/home.aspx?idioma=en-us

BM&FBOVESPA and CME Group at the Brazil Investment Summit

BM&FBOVESPA and CME Group will jointly exhibit at the Brazil Investment Summit, in São Paulo, from April 26 to 29. The international event gathers more than 500 market professionals, including institutional investors, hedge funds, assets managers, and brokerage houses. On April 28, both exchanges will participate in a discussion panel on facilitating quantitative trading in Brazil, which will address the growing participation of algo trading in the Brazilian derivatives and equities markets, as well as other DMA trading opportunities. For further information, access http://www.terrapinn.com/2010/bis

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Join BEST Brazil Europe and discuss Brazilian investment opportunities

This year’s European edition of BEST – Brazil Excellence in Securities Transactions road show will take place in London, on April 27th, and in Paris on April 29th. BM&FBOVESPA co-organizes the event with other financial and capital markets institutions in Brazil and will present the latest investment opportunities in the country. www.bestbrazil.org.br

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MegaDirect new version

Since April 9th, the MegaDirect, an electronic communication interface, has a new version. The interface enables the insertion, modification, and cancelation of offers placed on the Mega Bolsa, BM&FBOVESPA equities segment trading platform. As of 1 June 2010, the MegaDirect will become the only form of access for all automatic DMA connections to the Mega Bolsa. The new system performs up to tenfold faster than the Multigateway, the Exchange’s other operating interface, which will be deactivated on June 1.

U.S. Senator Christopher Dodd discusses market regulation trends with BM&FBOVESPA

The Chairman of the U.S. Senate Committee on Banking, Housing, and Human Affairs, Senator Christopher Dodd visited BM&FBOVESPA in April. The American Senator met with BM&FBOVESPA’s CEO, Edemir Pinto, and other officers and discussed the Exchange’s vertically integrated business model, risk management system, OTC markets and the industry’s regulatory trends.

BM&FBOVESPA and Cepea launch Spot Ethanol Price Indicator

BM&FBOVESPA and the Center of Advanced Studies in Applied Economy (Cepea) launched the Spot Hydrous Ethanol Price Indicator Paulínia (SP) Esalq-BM&FBOVESPA. The new indicator is a daily gauge for hydrous ethanol with price formation in Paulínia, in the state of São Paulo, a fuel distribution hub in Brazil. The indicator is calculated through price information provided by market participants, like producers, distributors and brokers.

DMA trading reaches historic records at BM&FBOVESPA

Derivatives trading via Direct Market Access at BM&FBOVESPA reached historical records in March, with 18,404,891 contracts traded, in 1,983,044 trades; in contrast to the records registered in the previous month of 12,537,023 contracts traded, in 1,485,032 trades. DMA trading via order routing with CME Group’s Globex also reached a record 3,931,514 contracts traded in March, in 1,039,213 trades. Previous trading records had been set with 3,246,598 contracts traded in October 2009, and 816,205 trades in February 2010.

Equity market transactions carried out through order routing via DMA registered a historical financial volume record of BRL136.86 billion and 11,867,547 trades. In February, the financial volume was BRL112.32 billion and 9,546,982 trades.

BM&F segment trading volumes registered by access modality in March in comparison to the previous month are as follows:
Traditional DMA – 9,245,230 contracts traded, in 669,288 trades, in comparison to 5,807,581 contracts traded and 505,698 trades;
Via DMA Provider – 4,646,935 contracts traded, in 91,217 trades, in comparison to 3,200,086 contracts traded and 75,421 trades;
DMA via order routing with CME Globex (CME Group’s electronic trading platform) – 3,931,514 contracts traded, in 1,039,213 trades, in comparison to 3,171,892 contracts and 816,205 trades;
DMA via co-location – 581,212 contracts traded, in 183,326 trades, in comparison to 357,464 contracts traded, in 87,708 trades.

BM&F Segment March 2010

The derivatives market segment totaled 71,691,088 contracts and BRL4.75 trillion in volume. That compares to 39,306,238 contracts and a volume of BRL2.47 trillion in February. The daily average of contracts traded in the derivatives markets set a new record: 3,117,004.

BOVESPA Segment March 2010

The equities market segment reached a total volume of BRL148.81 billion, in 9,038,122 trades, with daily averages of BRL6.47 billion and 392,962 trades, respectively. In February, total volume reached BRL118.06 billion, 7,355,993 trades, with daily averages of BRL 6.55 billion and 408,666 trades, respectively.

Source: BM&FBOVESPA 20.04.2010

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April 13, 2010 • 6:47 am 1

Charles River Expands Brazil and Latin America Presence

Charles River Development has expanded its regional presence in Sao Paulo, Brazil with local, multi-lingual employees providing implementation, consulting and support services for regional clients and prospects.

In a company statement, Manuel Astiasaran, Director of Operations in Latin America for Charles River, said, “Our expanding client base reflects Latin America’s changing regulatory climate. Heavy regulation limiting investment to domestic securities has been relaxed, such as the 2009 regulation from Brazil’s Commisso de Valores Mobilirios, making way for international investments. This has increased buy-side demand for front- to middle-office systems that automate domestic and international investment operations.”

The Charles River Investment Managing System (IMS) is available in Portuguese and Spanish and supports region-specific security types and workflows, including Mexican corporate and government bonds, as well as Brazil’s CDI-linked debentures and complex inflation-linked government notes.

The Charles River IMS includes pre-built compliance libraries with rules across 35 regulatory bodies in 20 countries, including rule libraries for Mexico, Brazil and Chile.

Source: Advanced Trading, 06.04.2010

Filed under: BM&FBOVESPA, BMV - Mexico, Brazil, Chile, Latin America, Mexico, News, Risk Management, Trading Technology , Trading Network, Trade Connectivity, Brazil, DMA Direct Market Access, BMV Bolsa Mexicana de Valores, Mexico, Reference Data, Financial Crisis, BM&FBOVESPA, Risk Management, Governance, Charles River

April 12, 2010 • 6:30 am 0

Trading Technologies and BM&FBOVESPA Agree to Expand TT’s Presence in Brazil

Trading Technologies International, Inc. (TT), the leading provider of order-entry software and solutions for professional derivatives traders, and BM&FBOVESPA, Latin America’s largest exchange, announced on 12 April 2010 that they have entered into a partnership to provide direct access to BM&FBOVESPA’s new multi-asset class platform via TT’s X_TRADER® platform.

TT’s direct connection to BM&FBOVESPA will provide traders from anywhere in the world with access to the exchange through TT’s X_TRADER® platform. The new connection will provide TT’s customers with access to the main derivatives contracts listed on the exchange, including:

Interest Rates – One-Day Interbank Deposit, Long Term Interbank Deposit and ID x US Dollar Swap with Reset contracts
Equity Index Futures – Ibovespa, Mini-Ibovespa, Brazil Index-50 and General Market Price Index
Currency – USD Futures, Mini-USD and Euro Futures
Agricultural – Arabica Coffee, Real-Denominated Corn, Soybeans, Crystal Sugar, Live Cattle and USD Denominated Ethanol
Sovereign Debt Instrument (Bonds) – A-Bond Futures, Three-, Five- and Seven-Year Brazilian Sovereign Credit Default Swaps and Ten-Year US Treasury Notes
Metals – Gold Futures and Spot contracts

“BM&FBOVESPA is very pleased with this partnership that will contribute for the growth of our market. This partnership is aligned with our goal to offer advanced technological solutions for our customers”, said Cicero Augusto Vieira, BM&FBOVESPA Chief Operating Officer.

“We believe this agreement with BM&FBOVESPA will provide a superior ultra-low-latency connection to the exchange. We expect the co-location and proximity-based computing solutions planned for our new TTNET hub in Sao Paulo will provide our global customer base with a critical edge,” said Harris Brumfield, CEO of TT.

Source: TTNET, 12.04.2010

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March 26, 2010 • 7:23 am 2

Brazil: BM&FBOVESPA Exchange news and events March 2010

SunGard Global Trading authorized as DMA provider

BM&FBOVESPA has authorized SunGard Global Trading to act as a provider of direct market access (DMA) for the BM&F segment (derivatives markets). SunGard offer brokerage houses and its clients an order routing system that allows direct trading of financial and agricultural derivatives traded at the Exchange. BVMF is also working with SunGard to develop a back-office solution for North American clients that trade agricultural and financial derivatives in Brazil.

Voluntary carbon credit market auction

BM&FBOVESPA will hold on 08 April 2010, a voluntary carbon credit market auction. A total amount of 180,000 voluntary carbon units from projects managed by the Social Carbon Company will be auctioned. The auction will be held in three sessions, with a lot traded per session. The initial bidding prices will be indicated by lots that vary in accordance to the vintages and are priced at BRL 10.00 to BRL 12.00 per unit. The first transaction will occur at 1:00 p.m. (Brazil Time) and will be carried out by BM&FBOVESPA’s Carbon Credit Trading System.

White paper on post-trade infra-structure

The Exchange divulged, on March 11th, a white paper entitled “BM&FBOVESPA’s Post-Trade Infra-Structure – Integration Challenges and Opportunities”. The document aims to stimulate debate among market participants, regulatory agents, and others interested in the integration of post-trade activities and systems (netting, settlement, central counterpart, and central depository). BVMF expects the participants to contribute to the consolidation of the path to be adopted in relation to integration opportunities. The white paper can be found at www.bmfbovespa.com.br, in Notices.

BM&FBOVESPA establishes new historic record in contracts traded and in ID futures

BM&FBOVESPA established on 18 March 2010 a new historic record in the total number of contracts traded in the derivatives segment, with 10,157,779 contracts. The previous record of 5,716,789 contracts was set on 17 March 2010. Trading of ID futures contracts also registered a historic record on 18 March 2010, reaching a mark of 6,093,795 contracts. The previous record of 4,544,750 contracts was also set on 17 March.

UN´s Principles for Responsible Investment

On March the 3rd, BM&FBOVESPA formalized its adherence to the Principles for Responsible Investment (PRI), a United Nations initiative developed by financial markets to promote responsible investment. The document was signed during the first international PRI meeting held in Brazil. BM&FBOVESPA intends to set an example for other investors to adhere to the principals and also stimulate listed companies to report their socio-environmental initiatives to the market.

BM&FBOVESPA announces earnings for fourth quarter of 2009

Net income of R$220.2 million increased 8.8% year-on-year, whereas adjusted net income of R$315.3 million. 4Q09 net revenues of R$424.8 million increased 19.5% from the same quarter one year ago (pro forma). In a comparison of the twelve months to December 2009, net revenues dropped 6.2% to R$1,502.5 million. 4Q09 operating expenses reached R$ 160.4 million, a 25.2% increase from 4Q081 (pro forma) and a 21.0% increase from 3Q09’s. In 2009, recurring expenses reached R$446.7 million, a 12.9% drop from 2008 (pro forma), as adjusted by expenses related to employee compensation in 1Q09 (R$ 18 million) and in line with the target of R$450.0 million for 2009. EBITDA totaled R$276.4 million for the fourth quarter, up 17.3% from 4Q08 (pro forma). Click here for full earnings release.

BM&FBOVESPA begins trading three new ETFs

As of 23 February 2010, BM&FBOVESPA began trading three new Exchange Traded Funds (ETFs): iShares Brazil Index IBrX-100 (BRAX11); iShares BM&FBOVESPA Consumption Index (CSMO11); and iShares BM&FBOVESPA Real Estate Index (MOBI11). The new ETFs are managed by BlackRock Brazil. The Exchange also offers four other ETFs, which track the Ibovespa, Small Cap, MidLarge Cap, and IBrX-50 indices. Click here for further information on BM&FBOVESPA’s ETFs.

Exchange’s new communication interface with Mega Bolsa

As of April 20, 2010, the Mega Direct, a new electronic communication interface, will become the only form of access for all automatic DMA connections to the Mega Bolsa, BVMF equities segment trading platform. The tool enables the insertion, modification, and cancelation of offers placed on the Mega Bolsa. The new interface performs up to tenfold faster than the current system.

Exchange’s meeting in São Paulo

BVMF hosted the Ibero-American Federation of Exchanges meeting in São Paulo on March 19. The objective of the event was to bring together member exchanges from Latin America, Portugal, and Spain to debate the latest market trends of the region. The themes discussed were the recent regional integration initiatives; regulation; and the development of the derivatives market in Latin America. The meeting also featured a presentation by BVMF on its current strategic partnerships with CME Group and Nasdaq OMX.

Carbon Efficient Index

BM&FBOVESPA will receive until March 31st comments and suggestions to improve the development of the calculation methodology of the new Carbon Efficient Index (ICO2). The creation of the new index was announced on December 15th, 2009, by the Exchange and the Brazilian Development Bank (BNDES), during the 15th United Nations Climate Change Conference (COP15), in Copenhagen.

Volumes and trades by Direct Market Access (DMA)

In February, derivatives market segment registered a total of 12,537,023 contracts traded via DMA*, with 1,485,032 trades carried out through the GTS trading platform. In January, the total was 9,917,768 contracts traded in 1,203,321 trades. In February, trading via DMA (including all DMA modalities) registered increases both in number of trades and contracts traded, establishing the following records: (1) a daily average of 696,501 contracts traded, compared to the previous record of 497,049 in October 2009; (2) the daily average of orders routed via the CME Globex – BM&FBOVESPA GTS reached 176,216 contracts, compared to the prior mark of 154,600 in October 2009.

Traditional DMA – 5,807,581 contracts traded, in 505,698 trades, in comparison to 4,590,025 contracts traded and 446,674 trades;

Via DMA Provider – 3,200,086 contracts traded, in 75,421 trades, in comparison to 2,723,958 contracts traded and 61,019 trades;

DMA via order routing with Globex (CME Group’s electronic trading platform) – 3,171,892 contracts traded, in 816,205 trades, in comparison to 2,284,904 contracts and 618,746 trades;

DMA via co-location – 357,464 contracts traded, in 87,708 trades, in comparison to 318,881 contracts traded, in 76,882 trades.

BM&FBOVESPA market performance – February 2010

BM&F Segment

Derivatives markets in the BM&F segment totaled 39,306,238 contracts and BRL 2.47 trillion in volume in February. That compares to 36,217,359 contracts and a volume of BRL 2.65 trillion in January. The daily average of contracts traded in the derivatives markets set a new record in February, with 2,183,679 contracts, in contrast to the previous record of 2,172,046 in March 2008.

Bovespa Segment

In February, equity markets (Bovespa segment) reached a total volume of BRL 118.06 billion, in 7,355,993 trades, with daily averages of BRL 6.55 billion and 408,666 trades, respectively. In January, total volume reached BRL 129.10 billion, 8,051,640 trades, with daily averages of BRL 6.79 billion and 423,771 trades, respectively.

Source: BM&FBOVESPA, 26.03.2010

Filed under: BM&FBOVESPA, Brazil, Chile, Colombia, Exchanges, Latin America, Mexico, News, Peru, Risk Management, Trading Technology , FIX, Trade Connectivity, Order Routing, Exchanges, Brazil, DMA Direct Market Access, Carbon Market, Commodities, Derivatives, ETF, Index, BM&FBOVESPA, Futures and Options, financial futures, Performance Report, Regulation

March 9, 2010 • 7:43 am 0

CME Group, Bolsa Mexicana de Valores and MexDer Announce Order Routing, Equity Agreement

In connection with yesterday’s announcement made by CME Group concerning the order routing agreement it has entered into with the Mexican Stock Market (BMV) and the 1.9 percent acquisition of BMV’s capital, BM&FBOVESPA and CME Group announce that they will initiate discussions about said transaction and other commercial opportunities with BMV, in consonance with the terms of the global strategic partnership published in the material fact dated February 11, 2010.

Source: MondoVisione, 09.03.2010

CME Group, the world’s leading and most diverse derivatives marketplace, and the Bolsa Mexicana de Valores, S.A.B. de C.V. (BMV), the financial exchange operator in Mexico, today announced that they have entered into a strategic partnership that includes an order routing agreement for derivatives products. CME Group has purchased shares in the Mexican exchange valued at $17 million, or approximately 1.9 percent of outstanding BMV shares, as part of the equity portion of the agreement. Additionally, the Control Trust of BMV has granted CME Group the right to nominate a member to BMV Board of Directors and the two exchange operators have signed a memorandum of understanding covering activities aimed at enhancing the partnership between the two exchanges.

Mexico’s MexDer seeks high class global partners, 08.11.2009

BMV Bolsa Mexicana de Valore: Information on relationships and discussions with CME, 27.09.2009

Through the agreement, CME Group will become the exclusive exchange provider of derivatives order routing services to BMV outside Latin America, and BMV will be the exclusive exchange provider of derivatives order routing services to CME Group in Mexico. BMV’s derivative products are offered through its derivatives subsidiary, MexDer.

CME Group and BMV have also agreed to pursue potential joint initiatives including product development, marketing and customer education as well as clearing opportunities. Additionally, BMV, CME Group and its Global Preferred Strategic Partner BM&FBOVESPA will initiate discussions about the aforementioned transaction and other commercial opportunities.

“Latin America is a key market for CME Group,” said Terry Duffy, CME Group Executive Chairman. “We are pleased to announce this new partnership with BMV which furthers our global strategy to offer customers increased access to our products while, at the same time, allowing BMV to use the CME Globex trading network to increase distribution of their products in North America.”

“With Mexico’s standing as the 13th largest economy and one of our country’s most significant trading partners, we are pleased to work with BMV to facilitate global hedging and risk management activity in our respective markets,” said Craig Donohue, CME Group Chief Executive Officer. “In addition to providing CME Group customers with our own highly liquid products in interest rates, equities, foreign exchange, commodities, energy and metals, the order routing agreement announced today will soon broaden efficient access on or through our CME Globex electronic trading platform to financial markets in Brazil, Mexico, South Korea, Dubai and Malaysia.”

“With this operation BMV increases its presence in the international markets. Greater distribution capabilities are a key part of our strategy to attract more investors to Mexico,” said Luis Tellez BMV Executive Chairman and Chief Executive Officer. “Allowing international investors an easier access into MexDer will improve liquidity and develop the local market. At the same time this agreement will provide Mexican investors with more tools to manage their portfolios.”

The order routing arrangement, which is scheduled to begin in 2011, will give BMV customers access to CME Group’s benchmark derivatives contracts including interest rates, foreign currencies, equity indexes, energy, metals and agricultural commodities. It will also give CME Group customers access to BMV’s interest rate and equity index derivatives.

Source: MondoVisione, 08.03.2009

Filed under: BM&FBOVESPA, BMV - Mexico, Exchanges, Latin America, Mexico, News, Risk Management, Trading Technology , Trade Connectivity, Order Routing, Exchanges, DMA Direct Market Access, MexDer, BMV Bolsa Mexicana de Valores, Mexico, Derivatives, Malaysia, Korea, CME, BM&FBOVESPA, Risk Management, Luis Tellez, Dubai

March 6, 2010 • 7:56 am 1

ETF: BlackRock ETF Industry Review Latin America Industry Review – Year End 2009

BlackRock has just published its Latin America Industry Review Year End 2009 report. This report is a review of the Exchange Traded Funds (ETFs) and Exchange Traded Products (ETPs) listed globally.

At the end of 2009 the Latin American ETF industry had 17 locally domiciled ETFs, 211 exchange listings, and assets of US$9.84 Bn from three providers on two exchanges.

There are 169 ETFs cross listed in Mexico at the end of December 2009 from eight providers, while there are 340 ETFs registered for sale in Chile from 10 providers, and 277 ETFs registered for sale in Peru from 12 providers.

Read full report of BlackRock_ETF_Latin_America_Review_2009

Source:MondoVisione, 05.03.2010

Filed under: Argentina, BM&FBOVESPA, BMV - Mexico, Brazil, Central America, Chile, Colombia, Exchanges, Latin America, Mexico, News, Peru, Services , Brazil, Retail Investors, BMV Bolsa Mexicana de Valores, Mexico, ETF, Argentina, Colombia, Peru, Index, Chile, BM&FBOVESPA, iShares, Emerging Markets, Venezuela, Market Analysis, Blackrock, ETC Exchange Traded Commodities, IPC