SAO PAULO and NEW YORK, Nov. 12, 2014 /PRNewswire/ -- BM&FBOVESPA (BVMF), the largest equity and futures exchange in Latin America, and S&P Dow Jones Indices (S&P DJI), one of the world's leading providers of financial market indices, announced today the signing of a memorandum of understanding (MOU) to create and launch new, co-branded equity indices for the Brazilian marketplace. Each of these new indices will be calculated, published, and marketed globally by S&P DJI.
By way of the MOU, all new equity indices developed and launched as part of this agreement will be co-branded "S&P/BM&F BOVESPA". Factor-based indices (such as: dividend, volatility, and multi-asset), risk control, and sector indices, each based upon established and recognized S&P DJI methodologies, are just a sample of new indices being considered. Each new index would also be designed to potentially serve as the basis for index-based investment products.
The agreement also paves the way for a broader relationship between the two parties, including the expansion into other asset classes.
"At the very heart of S&P Dow Jones Indices' successful global growth story is our long standing, deep-seated relationship with the world's leading stock and derivative exchanges," says Alex Matturri, CEO of S&P Dow Jones Indices. "BM&FBOVESPA and S&P Dow Jones Indices have historically shared very similar goals in bringing greater transparency and access to the stock markets of Brazil. Today's announcement officially aligns these common interests to the betterment of investors."
According to Edemir Pinto, CEO of BM&FBOVESPA: "The partnership between BM&FBOVESPA and S&P DJI is a very important step towards increasing our opportunities in the development of the Brazilian capital market. This move represents a raise on the offering of indices by a relevant and highly-skilled international player. The association of our brand to S&P DJI's on new co-branded indices will reinforce BM&FBOVESPA's position overseas through S&P DJI's global index distribution."
About S&P Dow Jones Indices
S&P Dow Jones Indices LLC, a part of McGraw Hill Financial, is the world's largest, global resource for index-based concepts, data and research. Home to iconic financial market indicators, such as the S&P 500® and the Dow Jones Industrial Average®, S&P Dow Jones Indices LLC has over 115 years of experience constructing innovative and transparent solutions that fulfill the needs of investors. More assets are invested in products based upon our indices than any other provider in the world. With over 1,000,000 indices covering a wide range of asset classes across the globe, S&P Dow Jones Indices LLC defines the way investors measure and trade the markets. To learn more about our company, please visit www.spdji.com.
S&P® is a registered trademark of Standard & Poor's Financial Services LLC ("S&P"), a part of McGraw Hill Financial. Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC ("Dow Jones"). These trademarks have been licensed to S&P Dow Jones Indices LLC. It is not possible to invest directly in an index. S&P Dow Jones Indices LLC, Dow Jones, S&P and their respective affiliates (collectively "S&P Dow Jones Indices") do not sponsor, endorse, sell, or promote any investment fund or other investment vehicle that is offered by third parties and that seeks to provide an investment return based on the performance of any index. This document does not constitute an offer of services in jurisdictions where S&P Dow Jones Indices does not have the necessary licenses. S&P Dow Jones Indices receives compensation in connection with licensing its indices to third parties.
BM&FBOVESPA S.A. – Securities, Commodities and Futures Exchange was created in 2008 with the integration between the Brazilian Mercantile & Futures Exchange (BM&F) and the Sao Paulo Stock Exchange (Bovespa). Together, the companies have formed one of the largest exchange of the world in terms of market value. BM&FBOVESPA offers trading in equities on the cash, options and forward markets, and indices, interest rates, foreign exchange, agricultural and energy commodities on the futures, options, forward and swap markets, as well as other spot market transactions on gold, US Dollar and federal government securities. In order to provide investors with efficient and secure services, BM&FBOVESPA utilizes state-of-the-art technology. With its fully integrated business model BM&FBOVESPA offer not only a sophisticated trading environment, but also registration, clearing, settlement, risk management, and central depository services. It also acts as the central counterparty for all of the transactions carried out in its markets: equities, derivatives, securities, and foreign exchange.
SOURCE S&P Dow Jones Indices