Trade Groups Wants To See Brazil As A Financial Center

CMN e BC adotam novas políticas para operações de câmbio no país.

Trade associations representing Brazilian capital market players announced Wednesday the creation of an association dedicated to making the country into Latin America’s chief financial center.

The new association, called Brasil Investimentos & Negocios, or BRAIN, was created from a joint initiative by the Brazilian Association of Financial and Capital Market Institutions, or Anbima, the BM&FBovespa (BVMF3.BR), which runs Brazil’s main stock and futures exchange, and the National Bankers Federation, or Febraban.

“The idea is to transform Brazil into the financial center for Latin America,” said Anbima President Marcelo Giufrida at a news conference. “The idea was first raised in 2008, when Brazil obtained a sovereign investment grade credit rating. Since then, we have been studying the idea.”

Giufrida added, “Brazil is the ideal place to become the main financial platform for Latin American companies and investors. That is our long-term aim.”

Latin America’s largest nation has gained traction as a regional financial center in recent years.

For example, earlier this year, the BM&FBovespa signed an agreement with Chile to help that country’s stock exchange develop new trading methods. The BM&FBovespa is also pushing for cross-border trading in the Andean region, looking to use its girth as the area’s dominant trading platform to increase liquidity across Latin America.

“Since Brazil represents 70% of equities transactions in Latin America and 90% of derivative operations, it is natural for us to create the main regional platform here,” BM&FBovespa Chief Executive Edemir Pinto said during the press conference.

Along with attracting foreign investors and companies to the regional market, BRAIN will also obtain know how from global peers in New York, London, Hong Kong, Singapore, Shanghai, Dubai and Mumbai, according to BRAIN General Director Paulo de Sousa de Oliveira Junior.