Bloomberg News

Brazil Exchange Competition Would Lower Trading Fees, Oxera Says

June 18, 2012

Ending BM&FBovespa SA’s monopoly on stock trading in Brazil would lower fees and help spur economic growth, Oxera Consulting Ltd. said in a report commissioned by the country’s securities regulator.

Increasing competition in the industry would “likely” reduce fees, Oxera said in the report posted on the regulator’s website. “The reduction in trading and/or post-trading prices can be expected to have some impact on the cost of capital for Brazilian-listed companies, which, at the margin, is likely to stimulate investment and economic growth,” the report said.

While Sao Paulo-based BM&FBovespa operates the only stock exchange in Brazil, U.S.-based Direct Edge Holdings LLC announced in 2011 it plans to open an electronic trading platform that will be based in Rio de Janeiro, pending regulatory approval.

Brazil’s securities regulator, known as CVM, said in a statement on its website that Oxera’s findings don’t necessarily reflect its views on the issue.

To contact the reporter on this story: Ney Hayashi in Sao Paulo at ncruz4@bloomberg.net

To contact the editor responsible for this story: David Papadopoulos at papadopoulos@bloomberg.net


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