Brazil Focus 2013: Opportunities Below the Surface
Report Summary
Brazil Focus 2013: Opportunities Below the Surface
Brazil’s BM&F Bovespa is working on initiatives to increase liquidity and trading opportunities and to advance the market’s trading environment across asset classes.
Boston, November 28, 2012 – A new report from Aite Group examines the opportunities that exist in the Brazilian market even as market fluctuations cause some pundits to view the market with caution. The report considers the shifting directions of geographic investment fund flows and the fundamental improvements being driven by the integration of Brazil’s clearinghouses. It also presents trading infrastructure improvements, strategic initiatives surrounding exchange technology, and potential benefits from the expansion of the fixed income market.
Having weathered the financial crisis in arguably better shape than the United States and Europe, Brazil has been a leader among emerging markets in the quest to modernize trading environments and provide more opportunities for investors. BM&F Bovespa initiatives aimed at increasing liquidity and trading opportunities appear to be working; the market is attracting increasing investment from Europe, diversifying the country’s base of investors. Meanwhile, the integration of its clearinghouses will lower trading costs and increase trading efficiency.
“The United States is no longer the only Brazilian customer in town,” says Danielle Tierney, analyst with Aite Group and author of this report. “The shift in trade activity and account openings to the European market indicates a growing demand for all things Bovespa.”
This 21-page Impact Note contains 14 figures and four tables. Clients of Aite Group’s Institutional Securities & Investments service can download the report.