05 April 2017
São Paulo
Reporter: Drew Nicol

BM&FBovespa and Cetip form new exchange


Brazilian exchange BM&FBovespa has merged with Cetip, Latin America's largest depository for over-the-counter (OTC) securities and derivatives.

The merged entity has been rebranded as B3 and promises to offer an enhanced range of services in its capacity as an exchange for all major asset classes, including securities lending and OTC derivative trades.

B3 also provides central depository and risk control systems up until the final beneficiary and acts as central counterparty for trades executed in its markets

The new exchange is headquartered in São Paulo.

B3 promises to be “greater than the sum of its parts. With a diversified portfolio of products and services, B3 aims to maximise business opportunities in a dynamic, challenging and competitive market environment on a global scale.”

Under the terms of the merger, BM&FBovespa temporarily increased its board of directors from 11 to 13 in order to bring in two Cetip executives for the remaining term of BM&FBovespa’s existing board.

As of 31 March, ownership of all Cetip shares were purchased by BM&FBovespa in exchange for 0.8991 of a share of common stock issued by BM&FBovespa per Cetip share.

Previous Cetip shareholders now own 11.8 percent of BM&FBovespa’s equity capital.

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