BM&FBOVESPA, 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 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.”