Brazil stock exchange
BOVESPA is the exchange where all the trading in stocks in Brazil takes place and is located in the city of Sao Paulo at 275 XV De Novembro Street. It is also called as the Sao Paulo Stock Exchange and is the only stock trading center in Latin America as well as in Brazil. It is the largest stock exchange of Latin America and accounts for about 70% of the total trade volume in the region. This stock exchange is at par with any other stock exchange in the world on basis of technology. It is also an active member of WFE, the World Federation of Exchanges and FIAB, the Federacion iberoamericana De Bolsas. It is also a member of IOSCO, the International Organization of Securities Commissions. Let us now discuss about the operating structure and the institutions structure of exchange.
OPERATING AND INSTITUTIONAL STRUCTURE
As far as the composition of BOVESPA is concerned, it is composes of various brokerage members that operate by means of an electronic trading system called as the Mega Bolsa. The decision making body in the exchange is the Member firms General Meeting and all the top decisions are taken in these meetings only. The various member firms meet two times in a year in order to decide on the budget plan of the exchange, for the approval of various financial statements of the previous years and in order to elect the members for the Board of Directors.
The Board Of Directors comprises 10 regular members and out of these 10, 6 are the representatives of the member firms. It is to be noted here that the Chairman as well as the Vice Chairman are chosen by the board for a period of one year. The board also includes 3 other regular members. One of these represents non-corporate investors whereas others two represent Institutional investors and publicly held companies. The CEO or the Chief Executive Officer of BOVESPA is a permanent member of Board of Directors. All the members at the board serve for a term of three years and one third of this change every year. However, CEO is exception. All the general policies of BOVESPA are formulated as well as implemented by the Board of Directors. It is also responsible for the effective carrying out of various functions related to the exchange. CEO is responsible for the implementation of the policies in a duly manner.
As far as the different types of securities that are traded at the exchange is concerned, the exchange is authorized for the trading of stocks and other securities that are issued by the public companies that are registered with the Brazilian Securities and Exchange Commission. Various types of trading moves at the exchange include stock call, put options, stock future contracts, debentures trading etc. Let us now discuss about other aspects related to BOVESPA.
OTHER ASPECTS OF BRAZIL STOCK EXCHANGEThere are many other aspects related to Brazil stock Exchange that need to be understood fully.
As far as the technology is concerned, the BOVESPA started investment in the technology in 1970?s when the automated tools were implemented in the trading processes. Since then, continuous efforts have been taken to improve the technology at the exchange in order to guarantee high performance and a safe platform for investment. Mega Bolsa is the technology that is being used at the exchange to carry out the different functions and providing services in efficient manner. This is basically the trading system of BOVESPA and all the buying and selling orders are processes electronically by this system. This allows the whole process of trading to be the transparent and fair. This also allows various investors at different locations to make orders in real time. The brokerage houses and the vendors can easily place order in real time by means of this system. This system via Internet and there are many other private networks also that are included in the overall activities related to system. It is very interesting to note here that Mega Bolsa is a cutting edge platform and about 99.5% of the orders that are placed on Mega Bolsa take less than one second to get processes. The average time taken is about 0.62 seconds per order. Thus, it can be easily said that the trading system at the Brazil Stock Exchange is quite efficient and this is the reason why it was said earlier that Brazil Stock Exchange is one of the most efficient stock exchanges of the world. Mega Bolsa relies on the monitoring scheme that ensures the performance of the system. Thus, it is easily possible to track and identify the various types of problems that are faced and rectifying those problems. There technology also allows for the statistical treatment of the date.
One of the facilities that are provided by the Brazil Stock Exchange is the Home Broker. This facility allow the investors to place their orders for the selling or buying of stocks directly by means of web sites of various brokerage firms, of which they are members. These orders are placed directly on Mega Bolsa, which is the principle trading system of BOVESPA. Home Broker was designed in order to speed up the trading process and allowing more number of individuals to access the stock market.
The Brazil Stock Exchange also provides the technical as well as operational support to its various brokerage firms. This allows them to implement the Home Broker facility. There are many advantages of this system like documents can easily be registered and handled in a fast manner, portfolio tracking, access to various stock quotes etc.
There are many indexes pertaining to BOVESPA and these include Ibovespa, the Bovespa Index, Brazil Index 50 etc. As far as the timings are concerned, the pre-opening fixing timings of the electronic trading system are from 9.45 am to 10.00 am and the continuous trading sessions starts from 10.00 am to 5.00 pm.
SO, BOVESPA TAKE CARE OF ALL TRADING ACTIVITIESAfter going through the above discussion, it can be rightly said that BOVESPA or the Brazil Stock Exchange is an important stock exchange not only in Brazil as well as in Latin America. The technology used is highly evolved and this is the reason why this exchanges is one of the best exchanges of world. The Home Broker facility allows a person to place order at Mega Bolsa from any location.
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