View source for Brazilian Mercantile & Futures Exchange

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{{Infobox_Company
| company_name = Brazilian Mercantile & Futures Exchange
| company_logo = [[image:BM&F2.jpg]] 
| key_people = Chairman, [[Manoel Felix Cintra Neto]]
| foundation = 1985
| location = São Paulo
| products = Futures, options and swaps on interest-rate products, currencies, indexes and commodities
| homepage = [http://www.bmf.com.br www.bmf.com.br]}}

The Brazilian Mercantile & Futures Exchange (BM&F) was formerly the largest [[derivatives]] [[exchange]] in Latin America. 

Current exchange, [[BM&F Bovespa]], was created in March 2008 with a [[merger]] between BM&F and [[Bovespa Holding SA]], the [[publicly traded]] company that owns the Brazilian Stock Exchange.<ref>{{cite web|url= http://www.marketwatch.com/news/story/brazils-bmf-bovespa-announce-merger/story.aspx?guid={1B296EC4-DC75-4ABE-8025-AC912FA6CA16}|org=MarketWatch| date=April 13, 2009|name="Brazil's BM&F, Bovespa announce merger deal"}}</ref>
  
BM&F ranked sixth globally in 2006<ref>{{cite web|url=http://www.futuresindustry.org/fi-magazine-home.asp?a=1171 |org=Futures Industry Association| date=November 1, 2007|name="Annual volume rankings"}}</ref>, with [[volume]]s rising 37.6 percent to 258.5 million contracts. In 2007, it posted a 49-percent jump in [[net profit]]s, and [[net income]] rose to 293.3 million reais ($174.5 million) from 197.2m  reais in 2006.<ref>{{cite web|name="Brazil BM&F futures market's 2007 profit up 49 pct,” Feb. 27, 2008|url=http://www.reuters.com/article/rbssFinancialServicesAndRealEstateNews/idUSN2741435920080227|org=Reuters|date=Feb. 27, 2008}}</ref>

The exchange converted into a [[for-profit]] company in September of 2007 and secured [[investment]] from the [[CME Group]] and a [[private equity]] firm ahead of an [[initial public offering]] on Nov. 30, 2007.<ref>{{cite web|url=http://www.bmf.com.br/portal/portal_english.asp |org=BM&F| date=November 2007|name="Company report"}}</ref>

The [[stock]] opened at R$25 a [[share]], with R$5.98 billion raised from the sale of a 33.2 percent stake by the existing [[shareholder]]s.<ref>{{cite web|url=http://www.bmf.com.br/portal/pages/imprensa2/destaques/2007/dezembro/destaque_ipo_eng.asp|org=BM&F| date=November 1, 2007|name=Press release}}</ref>

Interest-rate and currency [[futures]] and [[options]] dominate [[trading]], with compound annual growth in volumes of 24 percent since the launch of [[electronic trading]] in 2000. The exchange [[settle]]s through three [[clearinghouse]]s and also lists [[equity index]] and [[commodity]] [[contract]]s, as well as clearing [[over-the-counter]] products. In 2005 it launched a [[carbon-trading]] project.

== History and Ownership ==
The Bolsa de Mercadorias & Futuros (BM&F) was founded in July 1985 by [[member]]s of the [[Bovespa]] stock exchange, and trading started on Jan. 31, 1986. It [[merge]]d on May 9, 1991 with the older [[São Paulo Commodities Exchange]] (founded in October 1917), and acquired Rio de Janeiro’s rival [[Brazilian Futures Exchange]] in 1997. It launched the [[Brazilian Commodities Exchange]] in August 2002, consolidating the country’s agricultural trading businesses from their regional centers.<ref>{{cite web|url= http://www.bestbrazil.org.br/pages/publications/BrazilianCapital/Market_Profile.pdf  |org=Best Brazil| date=November 1, 2007|name="BM&F profile"}}</ref>

The BM&F board agreed in December 2006 to convert to a [[for-profit]][[ company]] and seek a [[stock]] market [[listing]] by the end of 2007. The exchange owners agreed to convert to a [[for-profit]] organization on Sept. 20, 2007, and hired [[Rothschild]] to manage the process. Exchange officials expect to [[float]] a [[minority stake]] in the group on the [[Bovespa]].

The stock was first priced on Nov. 8, 2007 at R$14.50-R$16.50 a [[share]], with 28.8 percent slated for sale on Nov. 30, rising to 33.2 percent if a [[greenshoe]] was exercised.<ref>{{cite web|url=http://www.ft.com/cms/s/0/26ba5362-8f10-11dc-87ee-0000779fd2ac.html |org=Financial Times| date=November 1, 2007|name="BM&F listing set to raise R$4.6bn"}}</ref>

[[General Atlantic]], the U.S. [[private equity]] group, agreed on Sept. 23, 2007 to [[acquire]] a 10 percent stake in the exchange for R$1 billion, including a two-year lock-up.

The BM&F announced a [[equity swap|cross-equity swap]] and marketing pact with the [[CME Group]] in October of 2007, with the U.S. exchange taking a proposed 10 percent stake in the Brazilian operator, which will in turn [[acquire]] 1.19 million CME [[share]]s, with a four-year lock-up. [[CME Group]] will distribute BM&F’s products through the [[Globex]] platform while and BM&F will connect its distribution network to [[CME Globex]]. In February of 2009, CME Group said it was taking a [[pre-tax charge]] of $275 million on a $700 million [[cross-equity]] deal it struck in 2007 with the Brazilian Mercantile and Futures Exchange.<ref>{{cite web|url=http://www.ft.com/cms/s/0/a69c8a1e-f1f7-11dd-9678-0000779fd2ac.html?nclick_check=1|org=Financial Times|date=February 3, 2009|name=CME Hit By Trading Slowdown
}}</ref>

BM&F agreed to [[merge]] with Bovespa Holding on March 25, 2008.<ref>{{cite web|url=http://www.guardian.co.uk/business/feedarticle/7726001|org=Rueters| date=August 15, 2008|name=Brazil's BM&F Bovespa posts second-quarter net profit}}</ref>
BM&F went public in November 2007, raising BRL 5.98 billion in the initial public offering. Bovespa went public in October 2007, raising BRL 6.6 billion.<ref>{{cite web|url= http://www.marketwatch.com/news/story/brazils-bmf-bovespa-announce-merger/story.aspx?guid={1B296EC4-DC75-4ABE-8025-AC912FA6CA16}|org=MarketWatch| date=April 13, 2009|name="Brazil's BM&F, Bovespa announce merger deal"}}</ref>

In 2011, BM&F announced that they had joined forces with the [[Shanghai Stock Exchange]] to explore cross-listing opportunities. <ref> {{cite web|url = http://rapidsavr.com/the-shanghai-stock-exchange-and-brazils-bmf-bovespa-are-due-to-sign-an-agreement-on-monday-that-could-lead-to-closer-ties-between-the-two/|name = The Shanghai Stock Exchange and BM&F Join Forces|org = RapidSavr|date = March 30, 2011}}</ref>

== Structure and Business Model ==
The BM&F combines [[open outcry]] and electronic trading and is one of only two exchanges launched since 1986 - alongside France’s [[Matif]] - to incorporate a [[pit]].<ref>{{cite web|url=http://www.leomelamed.com/essays/95-berlin.htm |org=Leo Melamed| date=November 1, 2007|name="Stages In The Evolution of an Exchange"}}</ref>

The [[volume]] of screen-based business overtook the [[floor]] for the first time at the start of 2007. Around 54 percent of [[trade]]s were transacted on their Global Trading System platform in January and February 2007, compared with 48.2 percent in calendar 2006. The [[exchange]] incorporates three [[clearinghouse]]s covering financial and [[commodity]] [[derivatives]], [[foreign exchange]] and [[securities]].

Trading is conducted from Monday to Friday, from 0900 to 1700 with after-hours sessions from 1445 to 2000. After-hours transactions are [[cash settled]] on [[T+2]].

== Key People ==
*Chairman, [[Manoel Felix Cintra Neto]]
*CEO, [[Edemir Pinto]]
*CFO, [[Marco Aureilo Teixeira]]
*Chief Clearinghouse Officer, [[Cicero Vleira Neto]]
*Chief Market Development Officer, [[Ailton Coentro Filho]]
*Chief Corporate Officer, [[Renato Mercadante Morteri]]

== Products and Services ==
Real-denominated [[interest rate]] contracts dominate trading at the BM&F, and accounted for 57 percent of volume in the 12 months to Aug. 31, 2007. Currency contracts ranked second at 27 percent, followed by indexes (10 percent), U.S. dollar-denominated interest rate products (5 percent) and commodities (1 percent).

* [[Brazilian Mercantile & Futures Exchange Crystal Sugar Futures]]
* [[Brazilian Mercantile & Futures Exchange Cotton Futures]]
* [[Brazilian Mercantile & Futures Exchange Arabica Coffee Futures]]
* [[Brazilian Mercantile & Futures Exchange Soybean Futures]]
* [[Brazilian Mercantile & Futures Exchange Alcohol Futures]]
* [[Brazilian Mercantile & Futures Exchange Feeder Cattle Futures]]
* [[Brazilian Mercantile & Futures Exchange Robusta Conillon Coffee Futures]]
* [[Brazilian Mercantile & Futures Exchange Ethanol Futures]]
* [[Brazilian Mercantile & Futures Exchange Live Cattle Futures]]
* [[Brazilian Mercantile & Futures Exchange Corn Futures]]
* [[Brazilian Mercantile & Futures Exchange Gold Futures]]
* [[Brazilian Mercantile & Futures Exchange Interest Rates Futures]]
* [[Brazilian Mercantile & Futures Exchange Index Futures]]
* [[Brazilian Mercantile & Futures Exchange Sovereign Debt Instruments Futures]]
* [[Brazilian Mercantile & Futures Exchange Exchange Rates Futures]]

== Locations ==
{|
|-
|
'''São Paulo - Headquarters'''<br>
Praça Antonio Prado, 48<br>
Cep: 01010-901 - Sao Paulo - SP<br>
Phone : 55 (11) - 3119 2000 - Fax: 55 (11) - 3107 9911<br>
<br><br>
'''Campo Grande - Campo Grande Office'''<br>
Rua Aratu, 156 - Chácara de Cachoeira<br>
79040-330 - Campo Grande - MS<br>
PhoneFax.: 55 (67) 341-6560 <br>
<br><br>
'''Santos - Santos Office'''<br>
Rua 15 de Novembro, 41 - Loja 43 - Centro<br>
11010-151 - Santos - SP<br>
Phone : 55 (13) - 219 2812 - Fax: 55 (13) - 219 5583<br>
<br><br>
'''BM&F (USA) Inc'''<br>
61 – Broadway, 26 th Floor - Suite 2605 <br>
New York, NY -10006-2828 USA <br>
Phone: +1 - 212 - 750-4197 - Fax: +1 - 212 - 750-4198  <br>
| width=10% | &nbsp;
|
'''Rio de Janeiro - Rio Office'''<br>
Praça XV de Novembro nº 20 - 1º subsolo<br>
20010-010<br>
Phone: (21) 2514-1054<br>
Fax: (21) 2514-1050 and 2514-1060  <br> 
<br><br>
'''BM&F (China)'''<br>
200 Yincheng (M) Rd, Suite 404 Pudong New Area<br>
Shanghai 200120 China. <br>
Telephone: 86-21-5037-2886;<br>
Fax: 86-21-5037-2885. <br>
<br><br>
'''Brasília - Brasília Office'''<br>
SCN QD 04 Bloco "B" - Sala 404A <br>
Centro empresarial Varig<br>
70714-900 - Brasília - DF<br>
Phone.: (61) 3328-6301/02/03
|}

== References ==
<references />
[[category:Exchanges]]
[[category:Latin American Exchanges]]
[[category:Futures Exchanges]]

[[Category:MarketsWiki Page of the Day]]