Topic 5. South American Stock Exchanges
| Сайт: | Навчально-інформаційний портал НУБіП України |
| Курс: | International Exchange Activities ☑️ |
| Книга: | Topic 5. South American Stock Exchanges |
| Надруковано: | Гість-користувач |
| Дата: | вівторок, 14 жовтня 2025, 21:22 |
1. Common features
South American exchanges are organized markets that are developing. This segment is quite attractive for investors who are considering alternative markets and new innovative instruments.
According to the Futures Industry Association, the dynamics of international exchange trading in these markets indicate growth in the last 10 years.
In 2023, the volume of exchange trading on South American exchanges increased to 8.6 billion transactions, which is 5.7 times higher than in 2014, when 1.5 billion transactions were recorded.
Over the past three years, record figures for concluded transactions have been recorded on exchanges. At the same time, exchange trading in futures contracts is significantly higher than options trading in recent years. Thus, futures trading in 2023 amounted to 5.8 billion transactions, and options trading - 3.2 billion transactions.
South American exchanges have increased the volume of trading in financial instruments in recent years, which in 2023 amounted to 99% of total trading volumes.
An assessment of the statistical reports of the Futures Industry Association shows that the largest number of transactions on South American exchanges were concluded on securities and stock indices - 72%, on interest rates - 15%, and exchange rates - 12%. Exchange trading in commodity assets accounted for only 1%.
As we can see from the list of major South American exchanges, many of them, like most world exchanges, are leading exchange alliances.
In general, the current state and prospects for the development of the South American exchange region can be characterized as a market in which transactions related to electronic exchange trading in futures and options on various types of financial assets are concentrated.
As can be seen from the table above, the Futures Industry Association includes the Brazilian exchange B3 S.A. – Brasil, Bolsa, Balcão, the Argentine stock exchange – Matba ROFEX, the Uruguayan stock exchange – Uruguay Futures Exchange and the Colombian stock exchange – Bolsa deValores de Colombia.
The most significant results of stock trading are concentrated on the Brazilian stock exchange B3.
At the same time, within the South American stock exchange region, significantly more stock exchanges are included, which are of global importance and are located in:
- Brazil;
- Mexico;
- Chile;
- Argentina;
- Colombia;
- Uruguay;
- Paraguay;
- Peru.
Brazil is one of the largest countries in the region, which also has the most powerful stock exchange, which provides investment-attractive instruments. At the same time, the large amount of potential income from investments in stock market instruments of this region is associated with the emergence of additional risks, as inflationary jumps occur in many countries and high price volatility is observed.
Geopolitical tensions and high inflation in this region cause price fluctuations, which requires additional hedging using derivative instruments, the demand for which has also increased in recent years.
2. Brazilian Stock Exchange B3
B3 S.A. – Brasil, Bolsa, Balcão – is one of the leading exchanges in South America, with global significance and appeal to investors. The exchange was founded in 1890 and is headquartered in São Paulo. However, it has offices around the world, including in the USA, the UK, China and Singapore.
The Brazilian B3 Exchange provides services for exchange trading in derivatives and spot contracts.
The Brazilian Exchange is a public company and trades its shares under the ticker B3SA3 on the premium list of the Novo Mercado listing list.
As of the end of 2024, the market capitalization of the Brazilian B3 Exchange shares amounted to 10.1 billion USD. This provided the exchange with the 1673rd place in the list of the most expensive companies in the world by market capitalization.
Among the main exchange assets offered on the Brazilian B3 Exchange are the following types of assets:
- commodity assets;
- cryptocurrency;
- interest rates;
- exchange rates;
- securities.
The Brazilian stock exchange currently trades commodity derivatives and spot contracts for:
- Arabica coffee;
- Robusta coffee;
- Corn;
- Beef;
- Soybean;
- Ethanol.
The Brazilian B3 exchange offers a wide range of currency derivative contracts that attract speculators, including the US dollar, Canadian dollar, New Zealand dollar, Australian dollar, Euro, Pound sterling, Swiss franc, Swedish krona, Japanese yen, Chinese yuan, Chilean peso, Mexican peso, and others.
The Brazilian B3 stock exchange has several stock indices that are also traded in derivative contracts:
- Bovespa B3 BR+ Index (Ibovespa B3 BR+);
- Bovespa Index (Ibovespa)
- Brazil 100 Index (IBrX 100)
- Brazil 50 Index (IBrX 50)
- Brazil Broad-Based Index (IBrA)
The stock indices of the Brazilian B3 stock exchange have their own tickers on the exchange platforms, on the world markets among the main ones you can see: Ibovespa, IBrX-50, IBrX and Itag.
The Brazilian stock exchange is characterized by its traditional activity in the introduction of new innovative products and trading technologies.
The dynamics of stock indices indicate their stable performance, as the Brazilian B3 exchange occupies a leading position in the international stock market.
The scope of activity of the Brazilian B3 exchange includes the organization of trade, the clearing and settlement system, and the provision of depository activities for securities on the exchange's listing list.
B3 is the central counterparty for most of the transactions concluded on it by exchange market operators. The exchange acts as a universal platform, as it provides the opportunity to trade in commodity and financial assets simultaneously.
3. Argentine exchange MatbaRofex
Rosario Futures Exchange MatbaRofex was founded in 1907. This exchange is a member of the Futures Industry Association and at the end of 2024, the volume of transactions concluded on it amounted to 85.8 million contracts, which moved it to 2nd place in the ranking of exchanges in South America.
The MatbaRofex exchange provides trading in futures and options on commodity and financial assets.
Previously, the exchange was known as ROFEX S.A. in 2019 it changed its name to MatbaRofex.
The organizational structure of the exchange indicates that this exchange has 2 main organized markets and administrative management for them, namely the agricultural market and the financial market. Other departments of the exchange are similar to the typical organizational structure of the exchange.
The Argentine stock exchange Matba Rofex S.A., like other exchanges, also lists its shares in order to attract investment funds.
The Argentine stock exchange Matba Rofex S.A. currently provides trading in spot contracts and derivatives, namely futures contracts and options on futures for commodity and financial assets.
The peculiarity of the exchange is that it combines trading in agricultural assets and various financial assets on its platforms.
It should be noted that in the last two years, the indicators of the total income of the exchange and the net income of the Argentine stock exchange have increased significantly.
The Argentine stock exchange Matba Rofex was created as a result of the merger of two stock markets with a century-old tradition of exchange trading in commodity and financial assets and derivative contracts, namely: Mercado a Término de Buenos Aires S.A. and ROFEX S.A.
The exchange provides trading in a wide range of commodity assets, including the following:
- agricultural products (soybeans, wheat, corn, Chicago soybeans and corn, barley, sunflower, sorghum, cattle meat)
- metals (gold);
- energy resources (WTI crude oil);
The Argentine stock exchange ROFEX S.A., like most international exchanges, carries out exchange trading in financial assets, namely:
- securities;
- stock indices;
- interest rates;
- exchange rates;
- cryptocurrency;
- OTC instruments, etc.
The Argentine exchange Matba Rofex is licensed by the National Securities Commission. The exchange has the ability to provide trading in spot and futures contracts. The exchange provides access to analytical information on its website for transparency and accessibility to other participants.
The exchange also includes other structural divisions, as well as companies with which it cooperates and has close organizational relationships:
1) The Clearing House, which is licensed by the National Securities Commission and provides services for registration, clearing, settlements, guarantees and storage of securities in the depository.
2) Primary - a company that develops high-performance technologies for markets and their participants, was created after the merger of Primary S.A. and Sistemas Esco S.A. The main goal of the company is to provide a full cycle of access, electronic trading, risk management, etc.
3) Lumina Americas is a software company specializing in programming, development and implementation of solutions for financial markets, licensed to operate in South America;
4) Nexo ALyC is a comprehensive settlement and clearing agent regulated by the National Securities Commission and provides administrative and settlement services to trading agents.
5) Matba Rofex Foundation is a foundation that promotes research, development and educational programs in stock market activities. Its mission is to promote financial and economic education.
6) Primary Ventures is a company that invests in technology products. It supports startups in South America that are aimed at effective operation in capital markets. It especially finances new projects - on cryptocurrencies and their use.
7) UFEX is a stock exchange licensed by the Central Bank of the Eastern Republic of Uruguay, which provides trading in securities and foreign exchange rates.
According to the financial reports of the Argentine Stock Exchange in 2023, the fundamental factors that influenced its work were noted, namely: economic, social, regulatory, environmental.
During the reporting period, the exchange sold 396.5 million financial futures and options, which is 101% higher compared to the previous year.
Among the main ones were futures contracts on US dollars, which increased to 199.4 million contracts or 44.5% higher than the previous year.
Exchange trade in agricultural products for 2022-2023 amounted to 60.5 million tons, which is 7% less than the previous period. The number of open positions for the year also fell by 17.3% to 6.2 million tons per day.
The turnover of agricultural futures and options also tended to decrease. In the structure of trade, futures and spot contracts accounted for 85.79% or 51.9 million tons (-4.69%), and options - 14.21% or 8.6 million tons (-18.88%).
4.6 million tons were delivered under spot contracts during the reporting period, which is 8% less than in the previous period.
If we consider the structure of agricultural products sales with delivery, the following were delivered:
- soybeans - 2.3 million tons (+14%);
- wheat - 0.8 million tons (-35%);
- corn - 1.6 million tons (-16%).
Given the complex macroeconomic content, the Matba Rofex exchange currently considers its main priority to invest in the development of new financial instruments in order to attract new investors.
The next step is to deepen cooperation with the Uruguayan UFEX exchange in the medium and long term.
As we can see, last year was not so favorable for trading in agricultural products. During this period, droughts were observed, which affected the reduction in yields. Economic instability and reduced yields contributed to the additional need for hedging. Therefore, in the long term, an increase in exchange trading in derivatives on agricultural products is expected.
The exchange is also working to improve trading in spot contracts on agricultural products.
It should be noted that the acceleration of inflationary processes, the increase in the consumer price index to 115.6% led to an increase in exchange trading in futures and options on foreign exchange rates by 50%.
Innovative steps in 2023 include the introduction of futures trading on the cryptocurrency exchange – Bitcoin in Argentine pesos.
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