BM&F Bovespa: Brazil’s Stock Exchange

Definition: BM&F Bovespa

The BM&F Bovespa, also known as the Sao Paul Stock Exchange, is Brazil’s stock exchange. It is the third largest stock exchange in the world by market value with over 500 companies traded on the exchange. The exchange is located in the city center of Sao Paulo, Brazil.

The BM&F Bovespa is a Brazilian-owned company that was formed in 2008 from the merger of the Bolsa de Valores de Sao Paulo (Bovespa) and the Brazilian Mercantile and Futures Exchange (BM&F), creating the world’s third largest stock exchange.

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More On The BM&F Bovespa

The Brazilian stock exchange has been around for over 100 years, when it was established in 1890 and was known as the Bolsa de Valores de Sao Paulo (Sao Paulo Stock Exchange). During this time there were other stock exchanges in Brazil, such as the Bolsa de Valores do Rio de Janeiro (Rio de Janeiro Stock Exchange).

Until the mid-1960s, Bovespa and the other Brazilian stock markets were state-owned companies, tied with the Secretary of Finances of the states they belonged to, and brokers were appointed by the government. During this time there were 27 stock exchanges around Brazil.

After the reforms of the national financial system and the stock market implemented in 1965 and 1966, Brazilian stock markets assumed a more institutional role, becoming non-profit civil associations, with administrative, financial and property.

In 2000, the stock exchanges of Sao Paulo and Rio de Janeiro (BVRJ) and also nine other Brazilian stock exchanges in other cities of Brazil were intergrated and linked together. Since then, shares of listed companies in Brazil and corporate bonds are traded on the Bovespa, while BVRJ is in charge of the electronic market for government bonds, and the other Brazilian stock exchanges maintain the activities of market development.

In 2007, the Exchange demutualized and become a for-profit company. The following year, in 2008, Bovespa Holding announced the merger of the Sao Paulo Stock Exchange (Bovespa) and the Brazilian Mercantile and Futures Exchange (BM&F), creating the world’s third largest stock exchange.

Today, there are over 500 companies traded on the Bovespa. The Brazil Stock Exchange is a self-regulatory entity that operates under the supervision of the Brazilian Securities Commission, known as CVM.

BM&F Bovespa Index

Just like the Dow Jones Industrial Average index of the stock exchange in the United States, the main index of the Brazil stock market is the Indice Bovespa (Bovespa Index) or known as IBOVESPA. The IBOVESPA is an index of about 50 stocks and is the main indicator of the Brazilian stock market’s average performance.

Trading Hours

The exchange operates Monday-Friday, with a pre-market session from 09:45am to 10:00am, a normal trading session from 10:00am to 5:00pm and a post-market session from 5:30pm to 7:00pm.