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BM&F
The Brazilian Mercantile and Futures Exchange (BM&F) began operations in 1986 and is now the leading organized market and clearinghouse of its type in Latin America, trading derivatives, foreign exchange securities and government bonds and, at the same time, providing the respective clearing services. Recently, BM&F launched the Brazilian Commodities Exchange, thus creating an integrated domestic cash market for agricultural commodities.
BM&F is ranked among the top ten futures exchanges in the world and offers a wide variety of contracts based on commodities and financial assets. Those include: gold, stock indices, Real/U.S. Dollar and Real/Euro exchange rates, interest rates, sovereign debt instruments, coffee, soybean, sugar, cotton, corn, anhydrous fuel alcohol, and livestock. Contracts may be of the forward, futures, options on cash, and options on futures type. Gold is also traded on the spot market. BM&F has also integrated OTC derivatives markets by offering an electronic registration system combined with the safeguards of its risk management structure.
In July 2002 the U.S. regulator, the Commodity Futures Trading Commission (CFTC), recognized BM&F´s rules and regulations, as well as its systems and mechanisms, as comparable to those employed by the U.S. financial intermediary industry and/or enforced for the local U.S. markets. Within the scope of its self-regulating power, BM&F creates rules and regulations to preserve equitable trading and market principles, as well as high ethical standards for the people who act directly or indirectly at the Exchange; regulates and monitors its members' transactions; solves operational issues; applies penalties to violators of legal, regulatory, and operational rules; extends operational credit to its members in conformity with its programs and purposes; advocates its interests and any related interest of its members before constituted authorities; and disseminates the derivatives market culture throughout the country by means of educational programs, training, and publications.
In November 2004 BM&F launched a Settlement Bank that offers settlement facilities for its brokers and Clearing Members. The Settlement Bank is wholly owned by BM&F and has no exposure to market and credit risk. |