Dismal November Trading at Brazil’s BM&F Bovespa Exchange - Volumes Drop 48%

One of Latin America’s largest and most developed trading venues, the Brazilian stock and derivatives Exchange , has seen sluggish metrics in its November trading volumes. The Sao Paolo-based venue reported disappointing volumes with a decline in the total value of transactions executed through its systems. Volumes dropped 48% on a month-to-month basis from October.

In the Bovespa segment, the exchange saw the average daily trading value reaching only $2.63 billion, a drop from $4.18 billion in October. A similar scenario occurred in the number of contracts traded; In November there were a total of 17,014,495 trades, down from 30,418,509 in the previous month. Average daily volume was 895,500, down from 1,322,544 traded in October.

Brazilian markets have been hopping around yearly lows and highs. The re-election of the country’s government has jilted the markets. In October, markets picked up and the main stock index hit a new high, not seen since 2011.

Reports published earlier this year in the Financial Times state that the Brazilian exchange is looking to extend its foothold in the region’s growing financial market. The Brazilian Stock Exchange BM&F Bovespa plans to purchase up to 15% of each of Latin America's most developing exchanges.

The BM&F Bovespa is one of the fastest growing exchanges in the world; It is ranked in the top 15 global venues for the trading of cash and derivative instruments. The exchange has partnered with the CME and offers direct connectivity to global participants looking to connect to the BRICS' (Brazil, Russia, India, China and South Africa) exchange. Brazil has been enhancing its trading infrastructure to support the needs of speed-sensitive traders.

In 2011, a leading technology vendor for low-latency trading solutions, Perseus Telecom, reported the implementation of the fastest available trading connection between BM&F Bovespa and US-giant NASDAQ. The solution was implemented in partnership with GlobeNet and was developed by making physical and technological improvements to the existing fibre path.

The recent BRICS' leader summit in Brazil saw the four emerging nations propose new measures that challenge developed nations, notably a development bank for the region.