page_title: B3 (stock exchange)
section_title: History
hierarchical_section_title: B3 (stock exchange) / History
caption_attribution_description: Português: A Bolsa de Valores de São Paulo (Bovespa).English: The São Paulo Stock Exchange (Bovespa).That was supposed to be going up, wasn't it?
context_page_description: The B3 - Brasil Bolsa Balcão S.A., formerly BM&FBOVESPA, is a stock exchange located in São Paulo, Brazil, and the second oldest of the country. At the end of 2011 it had a market capitalization of R$2.37 trillion, making it the 13th largest stock exchange in the world. However, owing to the slump in economic growth in Brazil associated with political problems, in addition to the strengthening of the United States dollar against the Brazilian real, the capitalization shrank to R$2.21 trillion by the end of 2015. On May 8, 2008, the São Paulo Stock Exchange and the Brazilian Mercantile and Futures Exchange merged, creating BM&FBOVESPA. Then at March 30, 2017, BM&FBOVESPA merged with CETIP, creating B3.
  The benchmark indicator of B3 is the Índice Bovespa, more commonly known as Ibovespa. There were 381 companies traded at Bovespa as of April 30, 2008.
  On January 23, 2020, the Ibovespa index reached its record market closing above 119,527 points.
  B3 also has offices in Rio de Janeiro, Shanghai, and London.
context_section_description: Founded on August 23, 1890 by Emilio Rangel Pestana, the "Bolsa de Valores de São Paulo" (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 financial 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 of technology such as the introduction of computer-based systems, mobile phones and the internet. In 1972, Bovespa was the first Brazilian stock market to implement an automated system for the dissemination of information online and in real-time, through an ample network of computer terminals.
  At the end of the 1970s, Bovespa also introduced a telephone trading system in Brazil; the "Sistema Privado de Operações por Telefone" or "SPOT" (Private System of Telephone Trading, in English). At the same time, Bovespa developed a system of fungible safekeeping and online services for brokerage 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 outcry).  Currently, BM&FBOVESPA is a fully electronic exchange.
  In 1997, a new system of electronic trading, known as the Mega Bolsa, was implemented successfully. The Mega Bolsa extends the potential volume of processing of information and allows the Exchange to increase its overall volume of activities.
  With the goal to increase popular access to the stock markets, Bovespa introduced in 1999 the "Home Broker", an internet-based trading systems that allows individual investors to trade stocks. The system enables users to execute buy and sell orders online.
  In 2000, Bovespa created three new listing segments, the Novo Mercado (New Market), Level 2 and Level 1 of Corporate Governance Standards, allowing companies to accede voluntarily to more demanding disclosure, governance and compliance obligations.  The new listing segments mostly languished until 2004, when a growing number of newly public companies began to list on the Novo Mercado and other segments as part of a capital-raising effort.  From 2004 to 2010, the vast majority of new 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 company, its controlling shareholder, and its management to comply with specified regulations.  In addition, listed companies must submit to arbitration as a method of resolving disputes.  The set of protections entailed by a Novo Mercado listing is apparently deemed by market participants to increase the attractiveness of companies.   The stock market index of Novo Mercado listed companies (the IGC) has consistently outperformed the broader Ibovespa index since its launch.
  The recent success of the Brazilian equity capital markets is attributed to a significant extent to the credibility engendered by the Novo Mercado regulations.  In 2007, only the United States and China equity markets had a greater number of initial public offerings.  The availability of a "market exit" has also encouraged the development of a private equity industry, a growing Brazilian investment banking market and a thriving asset management industry.  Another side benefit of a thriving equity market has been access to equity financing for the international expansion of Brazilian business.  Brazilian multinational companies have used the proceeds of equity offerings to fund a growing number of international acquisitions. 
caption: Trading Panel
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