B3 S.A. – Brasil, Bolsa, Balcão ( in English, B3 – Brazil Stock Exchange and Over-the-Counter Market ), once BM&FBOVESPA, is a stock exchange located in São Paulo, Brazil, and the second erstwhile of the state. At the end of 2011 it had a market capitalization of R $ 2.37 trillion, making it the 13th largest breed central in the worldly concern. however, owing to the slump in economic increase in Brazil associated with political problems, in addition to the strengthening of the United States dollar against the brazilian veridical, the capitalization flinch to R $ 2.21 trillion by the end of 2015. Its current form can be traced back to May 8, 2008, when the São Paulo Stock Exchange ( Bovespa ) and the brazilian Mercantile and Futures Exchange ( BM & F ) merged, creating BM & FBOVESPA. [ 3 ] On March 30, 2017, BM & FBOVESPA merged with CETIP, creating B3. The benchmark indicator of B3 is the Índice Bovespa, more normally known as Ibovespa. There were 354 companies traded at Bovespa as of March 31, 2020. [ 4 ] On June 7, 2021, the Ibovespa index reached its record market closing above 130,776 points. [ 5 ]

B3 besides has offices in Rio de Janeiro, Shanghai, and London .

history.

Stock Exchange deal, mid-twentieth hundred trade Panel Founded on August 23, 1890 by Emilio Rangel Pestana, the “ Bo lsa de V alor e mho de S ão Pa ulo ” ( São Paulo Stock Exchange, in English ) has had a long history of services provided to the stock market and the brazilian economy. 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. After the reforms of the national fiscal system and the stock market implemented in 1965/1966, brazilian stock markets assumed a more institutional role. In 2007, the Exchange demutualized and became a for-profit company. Through self-regulation, Bovespa operates under the supervision of the Comissão de Valores Mobiliários ( CVM ), analogous to the American SEC. Since the 1960s, it has constantly evolved with the help oneself of technology such as the presentation of computer-based systems, mobile phones and the internet. In 1972, Bovespa was the first brazilian malcolm stock market to implement an automatize organization for the dispersion of information on-line and in real-time, through an ample network of computer terminals. At the end of the 1970s, Bovespa besides introduced a telephone trade organization in Brazil ; the “ Sistema Privado de Operações por Telefone ” or “ descry ” ( Private System of Telephone Trading, in English ). At the lapp time, Bovespa developed a system of fungible guardianship and on-line services for brokerage house firms. In 1990, the negotiations through the Sistema de Negociação Electrônica – CATS ( Computer Assisted Trading System ) was simultaneously operated with the traditional system of “ Pregão Viva Voz ” ( open cry ). presently, BM & FBOVESPA is a amply electronic exchange. In 1997, a new system of electronic trade, known as the Mega Bolsa, was implemented successfully. The Mega Bolsa extends the potential volume of work of information and allows the Exchange to increase its overall volume of activities. With the goal to increase popular entree to the livestock markets, Bovespa introduced in 1999 the “ Home Broker ”, an internet-based trade systems that allows individual investors to trade stocks. The organization enables users to execute buy and sell orders online. In 2000, Bovespa created three raw listing segments, the Novo Mercado ( New Market ), Level 2 and Level 1 of Corporate Governance Standards, allowing companies to accede voluntarily to more demand disclosure, administration and submission obligations. The fresh listing segments largely languished until 2004, when a growing number of newly public companies began to list on the Novo Mercado and early segments as partially of a capital-raising feat. From 2004 to 2010, the huge majority of modern listings on the Bovespa were made by Novo Mercado, Level 2 and Level 1 companies. The Novo Mercado, Level 2 and Level 1 segments are based on a contractual agreement of the listed caller, its controlling stockholder, and its management to comply with intend regulations. In summation, listed companies must submit to arbitration as a method of resolving disputes. The arrange of protections entailed by a Novo Mercado list is apparently deemed by market participants to increase the attraction of companies. The stock market index of Novo Mercado listed companies ( the IGC ) has systematically outperformed the broader Ibovespa index since its launch. The recent success of the brazilian fairness capital markets is attributed to a meaning extent to the credibility engendered by the Novo Mercado regulations. In 2007, entirely the United States and China fairness markets had a greater number of initial populace offerings. The handiness of a “ commercialize passing ” has besides encouraged the development of a individual fairness industry, a growing brazilian investment bank market and a boom asset management industry. Another slope benefit of a thriving fairness market has been access to equity financing for the international expansion of brazilian business. [ 6 ] brazilian multinational companies have used the proceeds of equity offerings to fund a growing number of international acquisitions. Vale, Embraer, Gerdau, Brazil Foods, Marfrig Alimentos and JBS have acquired businesses outside Brazil using the proceeds from fairness offerings. [ 7 ] Attractive valuations of brazilian subsidiaries have led international companies to list their brazilian subsidiaries, as was the casing of Banco Santander Brasil. [ 8 ] On May 8, 2008, Bovespa Holding announced the fusion of the São Paulo Stock Exchange ( Bovespa ) and the brazilian Mercantile and Futures Exchange ( BM & F ), creating the populace ‘s moment largest livestock substitute. [ 9 ] As a consequence of an early 2008 store trade, Chicago ‘s CME Group owns a 5 % interest in BM & FBovespa, and in turn, BM & FBovespa owns a 5 % post in CME Group. The agreement has besides created an arrange routing trade system between both exchanges. [ 10 ] On June 18, 2012, BM & FBovespa became a establish member of the United Nations Sustainable Stock Exchanges first step on the evening of the United Nations Conference on Sustainable Development ( Rio+20 ). [ 11 ] On June 16, 2017, the Securities and Exchange Commission of Brazil has approved the change to the corporate name of BM & FBOVESPA S.A. – Bolsa de Valores, Mercadorias e Futuros to B3 S.A. – Brasil, Bolsa, Balcão, which must be used in all formal communications and references to the Company. The amalgamation of Cetip S.A. – Mercados Organizados into B3 S.A. – Brasil, Bolsa, Balcão was approved both at the Extraordinary Shareholders Meeting held on June 14, 2017 and by CVM, and that the legal action shall occur on July 3, 2017. [ 12 ]

Hours.

The exchange has a pre-market session from 09:45am to 10:00am, a normal deal session from 10:00am to 5:30pm and a post-market session from 6:00pm to 7:30pm weekdays and holidays declared by the Exchange in advance. [ 13 ]

Tickers and craft names.

In the cash commercialize, tickers are composed by four letters, a numeral, and a suffix in some cases. The letters stand for the listed company and the number disclosed the fairness type, as follows : [ 14 ]

Number Class Trade name indication
1 subscription right to common share DO (direito a ordinária)
2 subscription right to preferred share DP (direito a preferencial)
3 common share ON (ordinária nominativa)
4 preferred share PN (preferencial nominativa)
5 preferred share class A PNA
6 preferred share class B PNB
7 preferred share class C PNC
8 preferred share class D PND
9 subscription receipt to common share ON REC
10 subscription receipt to preferred share PN REC

11 and ahead, codes may represent many situations, most normally units ( UNT, a certificate meshing unlike equities together. For exemplify, SULA11 is a unit comprising one common stock and two favored stocks issued by Sul América S.A. ), exchange-traded funds, veridical estate investment funds ( known as FII, REIT in English ) and brazilian Depositary Receipts ( BDRs ). however, they may department of state other conditions, as unsecured bond subscription rights, special situations, and therefore on.

It is crucial to note that “ relegate ” choose stocks ( A, B, C, D and furthermore ) do not have an implicit meaning, i.e., each issuer may attribute different rights and restrictions for a given class. This means it is mandatary to learn individually their characteristics as they are not directly comparable among companies. The suffix B after the heart means the equity is traded at the over-the-counter ( OTC ) marketplace. here are some examples :

  • VALE5 = Vale PNA shares
  • CSNA3 = Companhia Siderúrgica Nacional common shares
  • CTNM4 = Companhia de Tecidos Norte de Minas – Coteminas preferred shares
  • ABCB2 = Banco ABC Brasil preferred shares subscription rights
  • ETER9 = Eternit S.A. ordinary shares receipts
  • SANB11 = Banco Santander Brasil units
  • FAMB11B = Fundo de Investimento Imobiliário Ed. Almirante Barroso, OTC
  • MILA11 = iShares MidLarge Cap ETF
  • AVON11B = Avon Products, Inc. BDRs, OTC

Ex rights conditions are indicated in the equity trade wind appoint as a suffix composed by the letter E ( for ex condition ) and a letter or a combination of letters depending on the corporate actions involved :

Letter Signification
D Dividend (Dividendo)
J Interest on own capital (Juros sobre capital próprio)
S Subscription (Subscrição)
R Income (Rendimento), for instance inflation adjustment for a dividend, yields from funds or a capital refund (Restituição de Capital)
B Bonus stocks (Bonificação) or stock split (Desdobramento)
G Reverse split (Grupamento)
C Company split (Cisão)

Trade names may carry another symbols depending on their corporate administration. BM & FBOVESPA has four distinctive list segments for companies that agree to undertake voluntary corporate rules on each segment : [ 15 ]

Symbol Signification
MA BOVESPA Mais (Bovespa Plus). Over-the-counter market for companies who desire to gradually access the stock market
N1 Level 1 of Corporate Governance
N2 Level 2 of Corporate Governance. It appends more obligations to the companies, to those required for Level 1
NM Novo Mercado (New Market). It is the topmost level of distinctive corporate governance practices

Equities ‘ trade wind names are composed by the issuer ‘s diagnose, brand name or abbreviation ( as it is limited to 12 characters ), equity type, bodied government level when apposite and ex rights indication when allow. here are some examples ( please note some equities listed here, such as subscription rights, do not exist anymore due to its own finite nature. The same put on to ex rights indication by the same argue ) :

Ticker Company name Class Governance Ex status Description
BBAS3 BRASIL ON NM EJ Banco do Brasil common stock, New market listed, ex interest
FTRX4 FAB C RENAUX PN Fábrica de Tecidos Carlos Renaux preferred stock
JBDU10 J B DUARTE PN REC Indústrias J.B. Duarte preferred stocks subscription receipts
BEEF3 MINERVA ON NM Minerva S.A. common stocks, new market listed
LATM11 LATAM AIRLN DR3 LATAM Airlines BDR class 3
BISA1 BROOKFIELD DO 3,06 NM Brookfield Incorporações S.A. common stocks subscription rights to be exercised for BRL 3.06. New market listed company
TRPL4 TRAN PAULIST PN N1 EDJ CTEEP – Compahia de Transmissão de Energia Elétrica Paulista, preferred share, Level 1 listed, ex dividends and interest

Indices.

BOVESPA calculates and discloses several indices : [ 16 ]

Broad indices.

  • IBOVESPA: Total return index comprising the most representative companies in the market, both by market cap and traded volume. It is the benchmark index of São Paulo Stock Exchange. It is the oldest BOVESPA index, and it is being broadcast since 1968.
  • IBRX 50: Also called Brasil 50, it comprises the 50 most traded equities at BOVESPA.
  • IBRX: It has the same purpose of IBRX 50, but embracing the 100 most traded equities.
  • IBRA: Brazil Broad-Based Index, it comprises a wider range of companies, aiming to embrace 99% of all companies already selected for any other exchange indicies. Its main goal is to represent the most relevant companies in the stock exchange.
  • MLCX: The Midlarge Cap Index shows the performance of the most relevant companies at the exchange, responding for at least 85% its total market value.
  • SMLL: The Small Cap Index comprises relevant companies who don’t apply for the MLCX listing, i.e., heavily traded companies which does not fill the 85% market share criteria.
  • IVBX: It was conceived as an index to trail the 2nd tier companies, defined as those which trading ranking is from 11th and beneath, therefore not to be classified as blue chips. Nevertheless, most of its members are highly relevant companies, needing to comply with high traded volume and market capitalization.
  • IDIV: The Dividend Yield index, it comprises companies which show the highest dividend yields values in the market, along with a strong trading session participation.

sector indicies.

  • IEE: Electric Power Index
  • INDX: Industrial Index
  • ICON: Consumption Index
  • IMOB: Real estate Index
  • IFNC: Financial Index (comprising banks, credit card processors, insurance companies, etc.)
  • IMAT: Basic Materials Index (representing raw materials, pulp & paper, packaging, steel, etc.)
  • UTIL: Public Utilities Index (electric power, water & sewage, gas, etc.)

bodied government indicies.

  • IGC: Corporate Governance Index comprises all companies listed in any of the distinctive governance levels, irrespectively of its market cap.
  • IGCT: Corporate Governance Trade index filters the IGC components by trading liquidity.
  • IGNM: The New Market Index congregates all listed companies in the New Market portion of the BOVESPA.
  • ITAG: The Tag Along Index is composed of equities that offer to his bearer privileged tag along rights compared to those granted by Brazilian law and a minimum trading volume.

sustainability indicies.

  • ICO2: Efficient Carbon Index is granted to companies who complies with efficient efforts to control greenhouse gas emissions and are eligible for IBRX 50.
  • ISE: Corporate Sustaintability Index is comparable to the Dow Jones Sustainability Index, to join companies tied to environmental, social and accountability goals.

other indicies.

  • IFIX: Real State Investment Funds measure the listed REIT’s return at BOVESPA. Unlike other indicies, it can be composed of OTC equities.
  • BDRX: Unsponsored Brazilian Depositary Receipt Index reflects the valuation of those equities which are not freely distributed at the stock exchange but limited to qualified investors, as defined by Brazilian regulations.

See besides.

References.

Coordinates :

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