B3 in Latin America

One of the strategic drivers for B3's internationalization process is the expansion of its activities in Latin America. This initiative started in 2015 with the plan to acquire minority stakes in key stock exchanges in the region (Chile, Colombia, Mexico and Peru). Following the creation of a dedicated team and the consolidation of acquisitions, in 2016 B3 began to operate with greater presence and proximity to local clients, stock exchanges, intermediaries and regulators in those markets. Since then, B3 has been contributing its experience and know-how, mainly through active participation in the board of directors of those exchanges and in proposing an agenda of product and service development to generate business opportunities and the growth of local markets, and create a regional investment hub.

B3's chief goal in Latin America is to integrate and develop the region's markets by enhancing and launching new products and services, cross-listing existing assets and partnering in technology and business development projects, while making the most of the experience and potential of each market. Therefore, B3 seeks to increase the flow of cross-border investments and the access of the region's investors to the Brazilian market and of local investors to the Latin American markets. It also seeks to attract more foreign investment to the region, bringing greater business opportunities and portfolio diversification possibilities, as well as increased liquidity and market depth.

Roberto Belchior, B3’s Market Development Director for Latin America, is a member of the boards of the Santiago de Chile, Colombia, Peru and Argentina (BYMA) stock exchanges, the latter as an independent member since B3 holds no equity stake in BYMA.

Bolsa de Santiago (BS) – On April 12, 2012, B3 and the Santiago Stock Exchange (BCS) signed an agreement for the development of the Chilean derivatives market. This agreement provided for knowledge transfer from B3 (then BM&FBOVESPA) to the Chilean stock exchange regarding the derivatives market, including products such as currency futures, stock index futures, interest rates, etc.

In the first half of 2015, B3 made the first equity stake acquisitions in BS, totaling an 8.3% stake that year. In July 2016, B3 increased its stake to 10.4%, consolidating itself as BS’s largest single shareholder, totaling an investment of around BRL52 million at the time.

Bolsa Mexicana de Valores (BMV) - In the first half of 2016, B3 acquired an equity stake equivalent to approximately 4.1% of the Mexican Stock Exchange totaling an investment of 640 million Mexican pesos (approximately BRL136 million at the time), thus becoming BMV’s largest single shareholder outside of Control Trust, which is made up of Mexican institutions.

Bolsa de Valores da Colômbia (BVC) - In July 2016, B3 acquired a 9.9% equity stake in the Colombian Stock Exchange in an investment of 39.8 billion Colombian pesos (approximately BRL44 million at the time), thus becoming BVC’s second largest shareholder. This stake was reduced to 6.1% of the voting capital due to the merger between BVC and Deceval, the Colombian central depository.

Bolsa de Valores de Lima (BVL) –   In January 2017, B3 acquired an 8.19% equity stake in the Lima Stock Exchange, an investment of 50.7 million Nuevos Soles Peruanos (approximately BRL49 million at the time). With this investment, B3 became BVL's second largest shareholder.

Bolsas y Mercados Argentinos (BYMA) – In April 2018, B3 took a seat in BYMA's board of directors. However, the relationship with the Argentinean stock exchange began long before that. Seeking to enable a new derivatives market in Argentina more quickly and efficiently, BYMA and B3 signed a technology cooperation agreement. This agreement allowed Argentinean futures contracts to be traded through B3's PUMA technology trading platform, through which orders by BYMA investors are carried out. The trades are subsequently sent back to BYMA for settlement and clearing purposes.

For further information on this project, as well as initiatives and opportunities in Latin America, please contact your RM or B3’s Latin America Market Development:

Roberto Belchior

+55 11 2565 5783

+55 11 99784 6163

roberto.belchior@b3.com.br

Flávio Pacheco da Silveira

+55 11 2565 7846

+55 11 94198 0601

flavio.silveira@b3.com.br

Guilherme Renda

+55 11 2565 6314

+55 12 98144 9917

guilherme.renda@b3.com.br

Maria Eduarda Gasparini Mariano

+55 11 2565 5661

+55 17 99731 7591

maria.mariano@b3.com.br