CME Launches Brazilian Index - USD Denominated

CME Group, the world's leading derivatives exchange, announced the launch of U.S. Dollar Denominated Ibovespa Futures to begin trading on October 22, 2012. These contracts are listed with, and subject to, the rules and regulations of CME.

"This cross-listing arrangement allows us to provide our core promise: ease of access, as well as more ways to manage risk for our global customers," said Scot Warren, Senior Managing Director, Equity Index Products and Services at CME Group. "This new cross-listing arrangement provides our customers access to Brazil's key benchmark product. This initiative will allow our clients to improve their ability to manage market and counterparty credit risk exposure across various asset classes."

The Brazilian Stock Index, one of the most liquid in South America is trading at 59,921.80.

"Our long-standing strategic partnership with CME Group allows us to offer products such as this which will provide exposure to Brazil with collateral efficiencies since CME Clearing will clear the product," said Marcelo Maziero, BM&FBOVESPA Chief Product and Customer Officer.

The Ibovespa is a total return index of 69 stocks traded on BM&FBOVESPA, the Brazilian Stocks, Mercantile & Futures Exchange. The index is comprised of a theoretical portfolio of the stocks that accounted for 80 percent of the volume traded in the last 12 months and that were traded on at least 80 percent of the trading days. On September 6, 2012, the components of Ibovespa represented 78.1 percent of all the stock market capitalization. Due to the fact that the Sao Paulo Stock Exchange Stock Exchange A stock exchange, also known as a securities exchange or bourse represents is a facility where stockbrokers and traders can buy and sell securities.This includes shares of stock, bonds, exchange-traded funds (ETFs), or other financial instruments. By extension, stock exchanges can also provide facilities for the issue and redemption of such securities and instruments and capital events including the payment of income and dividendsStock exchanges have developed into a permanent fixture in the fin A stock exchange, also known as a securities exchange or bourse represents is a facility where stockbrokers and traders can buy and sell securities.This includes shares of stock, bonds, exchange-traded funds (ETFs), or other financial instruments. By extension, stock exchanges can also provide facilities for the issue and redemption of such securities and instruments and capital events including the payment of income and dividendsStock exchanges have developed into a permanent fixture in the fin Read this Term updates the theoretical portfolio of the Ibovespa every four months, there may be changes in its composition during the life of a futures contract.

Brazil and the LATAM region at large are key markets for financial firms offering FX and CFD products, Forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this Term Magnates team have written a detailed report on the market, the opportunities, the threats and the potential. Available in the forthcoming Q3 quarterly report.