BM&FBOVESPA hosts meeting of World Federation of Exchanges

BM&FBOVESPA hosts meeting of World Federation of Exchanges

São Paulo, July 1st 2010 – BM&FBOVESPA is to host the forthcoming meeting of the World Federation of Exchanges (WFE) Working Committee, which will be held in São Paulo on July 1-2. Representatives of exchanges on all continents will attend the event, including BM&FBOVESPA CEO Edemir Pinto and WFE Secretary General Thomas Krantz. This is the second time São Paulo hosts the Committee, which holds meetings three times a year in different locations around the world to enable exchanges to swap ideas and discuss topics of relevance to the sector. 

One of the highlights on the agenda of this São Paulo meeting is a discussion of the role of exchanges in promoting sustainability, a strategic issue for the Brazilian exchange, which since the end of last year has introduced a structured approach by establishing a Sustainability Department that reports directly to the CEO. The issue will be discussed by a panel session entitled “Sustainable Investment – Strategy For Exchanges”, featuring Sonia Favaretto, BM&FBOVESPA’s Sustainability Officer and Chair of the Board of its Corporate Sustainability Index (ISE); Peter Clifford, WFE’s Deputy Secretary General; and consultants and investment managers from many countries besides Brazil. 

Another highlight of the program is the growing importance of the Brazilian financial markets in the international economic context, to be discussed in a session entitled “Financial Markets Today”. Other sessions will discuss self-regulation by exchanges and the evolution of corporate governance. 

Responsible investment

BM&FBOVESPA is a signatory of the United Nations Principles for Responsible Investment (PRI) and has announced the launch in the coming months of its Carbon Efficient Index (ICO2), an economic instrument for encouraging companies to adopt environmental management practices geared to climate change. The ICO2 will be weighted by the inventory of greenhouse gas emissions and match the structure of the IBrX-50, which tracks the 50 stocks most traded on the Brazilian exchange. In 2010 BM&FBOVESPA is also commemorating consolidation of the Corporate Sustainability Index (ISE), created in December 2005. The ISE currently comprises 43 stocks issued by 34 companies.

About the WFE

The World Federation of Exchanges is the trade association for the operators of regulated financial exchanges.  With 52 members from around the globe, the WFE develops and promotes standards in markets, supporting reform in the regulation of OTC derivatives markets, international cooperation and coordination among regulators. WFE stock exchanges are home to over 45,000 listed companies (as of December 2009).

At the end of 2009:

·         The total market capitalization of listed companies was approximately USD 46.5 trillion, an increase of 43% as compared to 2008.

·         Approximately USD 80.5 trillion in equities were traded on WFE stock exchanges, nearly a 30% decrease from USD 113 trillion recorded in 2008, and decrease for the first time in seven years.

·         More than 11 billion future and option contracts were traded on-exchange.