São Paulo
07 April 2017
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.

More clearing and settlement news
The latest news from Asset Servicing Times
Join Our Newsletter

Sign up today and never
miss the latest news or an issue again

Subscribe now
Japan earmarks Q2 2019 for T+2 settlement shift
07 November 2017 | Tokyo | Reporter: Drew Nichol
Japan has unveiled a “tentative” timeline for its exchanges’ shift from a T+3 to T+2 settlement cycle, with eye towards Q2 2019
Iberclear bank on Citi to provide global custody
20 October 2017 | Madrid | Reporter: Jenna Lomax
The agreement, signed at this years Sibos conference in Toronto, will enable Spanish clearing houses to settle international securities via local CSDs
Eurex Clearing launches partnership programme
09 October 2017 | Frankfurt | Reporter: Theo Andrew
The programme plans to build a “balanced ecosystem”, responsible for aligning responsibilities and benefits related to economics and governance, bringing “greater choice and transparency” to the market
BNP Paribas becomes first French OTC Clearing member
20 September 2017 | Hong Kong | Reporter: Barney Dixon
BNP Paribas has joined OTC Clearing Hong Kong, as the clearinghouse’s 17th member, and the first from France
Ten-year T2S saga comes to an end
19 September 2017 | Brussels | Reporter: Stephanie Palmer
The Target2-Securities pan-European harmonised settlement platform is finally fully operational, as the Spanish and Baltic markets completed their migration yesterday
SEC praises “smooth” T+2 transition
12 September 2017 | Washington DC | Reporter: Stephanie Palmer
SEC chair Jay Clayton said the move on 5 September “represents a significant accomplishment” for the industry
Citi and Deutsche Bank execute first SwapAgent trades
07 September 2017 | London | Reporter: Jenna Lomax
LCH’s new SwapAgent service has completed its first trades, facilitating an interest-rate swap and an inflation swap between Citi and Deutsche Bank
More clearing and settlement news