Latin America Advisor

Financial Services Advisor

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Can Brazil Bring More Liquidity to Its Capital Markets?

Brazil’s Securities and Exchange Commission, or CVM, expanded Brazilian depositary receipts, or BDRs, this year. The B3 stock exchange in São Paulo is pictured above. // File Photo: Rafael Matsunaga via Creative Commons.

Amid low interest rates in Brazil, domestic investors have been seeking alternatives for their money, including international investments and more exposure to local equities. Earlier this year, Brazil’s Securities and Exchange Commission, or CVM, announced the expansion of Brazilian depositary receipts, potentially increasing access and reducing barriers for local investors to invest internationally. Will this change increase the internationalization of Brazilian portfolios? What impact will this change have on local financial markets? Is further regulation needed in order to see substantial adoption?

Dominik Rohe, head of Latin America at BlackRock: “At BlackRock, we believe that the recent expansion of the Brazilian depositary receipts (BDRs) platform to allow a broader set of instruments, including exchange-trade funds (ETFs), to be ‘listed and traded’ locally is a significant step for Brazilian capital markets and investors. This will lead to the expansion and democratization of access to global markets. The new BDR rules will lead to a broader number of products that investors can choose from and make those products more accessible to institutional and retail investors, while reducing the complexities of investing abroad. For example, retail investors will be able to access the U.S. market through diversified, liquid and low-cost ETFs at a time when the number of retail investors is growing exponentially, having more than tripled since 2018. Additionally, we believe this is particularly relevant now given rates are at an all-time low of 2 percent and investors are actively looking to internationally diversify what have been significantly…”

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About the Financial Services Advisor

Covering Latin America’s banking and insurance sectors, remittances trends and data, micro lending issues, new technologies in the industry, anti-money laundering regulations, and much more, the Inter-American Dialogue’s biweekly Financial Services Advisor, a sister publication of the Latin America Advisor, gives readers fresh insight and diverse viewpoints from financial sector leaders. To subscribe or for more information, contact Erik Brand, publisher of the Advisor, at

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Erik Brand

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Gene Kuleta

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Anastasia Chacón González

Reporter & Associate Editor
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