Sao Paulo Brazil

History

Established on August 23, 1890, by Emilio Rangel Pestana, the São Paulo Stock Exchange (Bolsa de Valores de São Paulo) boasts a rich history of serving the stock market and the Brazilian economy. Initially, until the mid-1960s, Bovespa and other Brazilian stock markets were state-owned entities affiliated with the Secretary of Finances of their respective states, with government-appointed brokers.

Following the financial system and stock market reforms in 1965/1966, Brazilian stock markets took on a more institutional role. In 1972, Bovespa became the first Brazilian stock market to introduce an automated system for real-time information dissemination via an extensive network of computer terminals.

In 1990, negotiations via the Sistema de Negociação Eletrônica (Computer Assisted Trading System – CATS) ran concurrently with the traditional “Pregão Viva Voz” (open outcry) system. BM&FBOVESPA is now entirely electronic. The Mega Bolsa, a new electronic trading system implemented in 1997, expanded information processing capacity, boosting overall exchange activities. In 2000, Bovespa introduced three new listing segments – Novo Mercado (New Market), Level 2, and Level 1 of Corporate Governance Standards – enabling companies to voluntarily adhere to more rigorous disclosure, governance, and compliance standards.

In 1999, Bovespa introduced “Home Broker,” an internet-based trading system, aiming to enhance public access to stock markets. This system allows individual investors to trade stocks online, executing buy and sell orders. In 2007, the Exchange underwent demutualization, transforming into a for-profit company. On May 8, 2008, Bovespa Holding revealed the merger of São Paulo Stock Exchange (Bovespa) and the Brazilian Mercantile and Futures Exchange (BM&F), establishing the world’s second-largest stock exchange.

On June 16, 2017, the Securities and Exchange Commission of Brazil approved the change in the corporate name from BM&FBOVESPA S.A. – Bolsa de Valores, Mercadorias e Futuros to B3 S.A. – Brasil, Bolsa, Balcão. This name is to be used in all formal communications and references to the Company. The merger of Cetip S.A. – Mercados Organizados into B3 S.A. – Brasil, Bolsa, Balcão was endorsed both at the Extraordinary Shareholders Meeting on June 14, 2017, and by CVM, with the action taking effect on July 3, 2017.

B3’s key benchmark indicator is the Índice Bovespa, commonly referred to as Ibovespa. As of March 2023, B3 facilitated the trading of 475 companies.