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IPO funds raised (US$bn)No. of newly listed companiesThe BRICS Securities and Derivatives MarketsThe significant growth of market capitalisation over the past decade shown in Figure 2-1,however, was not accompanied by a corresponding increase in number of listings. In fact,primary market activities were not very active except in 2007. In 2011, BOVESPA saw 24new listings and US$4 billion of funds raised through initial public offerings (IPOs),compared to the peak levels of 71 new listings and US$30 billion IPO funds raised in 2007(see Figure 2-3).3228Figure 2-3. IPO funds raised and no. of newly listed companiesIPO funds raised on BM&FBOVESPA and no. of newly listed companies (2002 on – BM&FBOVESPA 2011) (2002 - 2011)IPO funds raisedNo. of newly listed companies30240210241802015016127113120908765442 3820111562149 130242002 2003 2004 2005 2006 2007 2008 2009 2010 2011Note: IPO funds raised figures for 2002 and 2003 are not Note: IPO funds raised figures for 2002 and 2003 are available.Source: BM&FBOVESPASource: BM&FBOVESPA monthly operational data603002.3 Financial derivatives marketBoth market segments of BOVESPA and BM&F offer trading in financial derivatives. Thekey products on BOVESPA are stock (including ETF) options and IBOVESPA options (theonly index options offered by BOVESPA segment). BM&F offers a much wider range offinancial derivatives, including futures and options (F&O) on interest rates, forex and equityindices, and futures on sovereign debt securities. Of all product types on BM&FBOVESPA,stock options are the dominant volume contributor, accounting for 56% of the total derivativestrading volume (including OTC contracts) in 2011. They are followed by F&O on interestrates (32%) and on forex (8%). Other derivatives (including agricultural and energyproducts) account for only a small fraction (4%). In terms of open interest, the top three arestill interest rate derivatives (64%), stock options (26%), and forex derivatives (8%). (SeeFigure 2-4.)- 6 - Research & Corporate Development, HKEx31 December 2012
IBOVESPA daily closing (points)Futures trading volume (mil contracts)The BRICS Securities and Derivatives MarketsFigure 2-4. Derivatives trading volume and open interest by product typeon BM&FBOVESPA (2011)BM&FBOVESPA — Derivatives market open interest by product type (2011)BM&FBOVESPA — Derivatives market trading volume by product type (2011)(a) Trading volume(b) Open interestBOVESPA stockoptions56%BOVESPA stockoptions26%Other derivatives4%BM&F forex F&O8%BM&F interest rateF&O32%Other derivatives2%BM&F forex F&O8%BM&F interest rateF&O64%Notes:Notes:(1) Numbers may not add up to 100 per cent due to rounding.(2) “Other derivatives” comprise: (i) BOVESPA options on ETFs and IBOVESPA; and (ii) BM&F F&O on equity indic(2) “Other derivatives” comprise: (i) BOVESPA options on ETFs and IBOVESPA; and (ii) BM&F F&O on equity indices,Notes:(1) Numbers may not add up to 100 per cent due to rounding.(1) Numbers may not add up to 100% due to rounding.gold, agricultural products and energy.gold, agricultural (2) “Other products derivatives” and energy. comprise: (i) BOVESPA options on ETFs and IBOVESPA; and (ii) BM&F F&O on equity indices,Source: Futures Industry Association (FIA)gold, agricultural products and energy.Source: Futures Industry Association (FIA) monthly statisticsSource: Futures Industry Association (FIA)Total: 1.5 billion contractsTotal: 52 million contractsIn the BRICS Exchange Alliance, futures on IBOVESPA, the benchmark index of theBrazilian stock market, is the cross-listed product. The monthly trading volume ofIBOVESPA futures on BM&FBOVESPA has been quite stable over the past decade. Theaverage daily contract volume was the lowest (in terms of the current contract size) at 42,775contracts in September 2002 and reached a high of 151,119 contracts in August 2007. (SeeFigure 2-5.) The average daily volume for the year 2011 was 86,948 contracts.Figure 2-5. IBOVESPA daily closing and monthly trading volume of IBOVESPA futuresIBOVESPA daily on closing BM&FBOVESPA and monthly trading volume (2002 of – IBOVESPA 2011) futures (2002 - 2011)80,00070,000IBOVESPA futures monthly volumeIBOVESPA daily closing73516 (2008/05/20)161460,0001250,0001040,00056754 (2011/12/29)830,00013872 (2002/01/02)620,0008370(2002/10/16)29435 (2008/10/27)410,0002002002/01 2003/01 2004/01 2005/01 2006/01 2007/01 2008/01 2009/01 2010/01 2011/01Year/monthNote: The Note: contract The contract size size of of IBOVESPA futures was reduced to one-third to since since 17 April 172006. April For 2006. comparison, For comparison, the trading the tradingvolumes volumes of IBOVESPA of IBOVESPA futures futures from FIA for Jan 2002 to to Apr Apr 2006 2006 were were multiplied multiplied by 3. by 3.Sources: Reuters and Futures Industry Association (FIA)Sources: Reuters and FIA- 7 - Research & Corporate Development, HKEx31 December 2012
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