Brazil CCP sees sec lending boom 27 November 2015São Paulo Reporter: Drew Nicol
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Brazil’s BM&FBovespa reported a 48.2 percent jump in securities lending volumes for Q3 2015 compared to Q3 last year.
Securities lending reached BRL 28.2 million (($7.5 million) in 3Q 2015, representing a 4.3 percent growth in total revenues on last year’s figures.
BM&FBovespa pointed to a combination of a 31.1 percent increase in the average value of open interest positions, and the removal of rebates (since January) that were offered to some groups of clients.
The average value of open interest positions in the securities lending platform reached BRL 40.7 billion ($10.9 billion) in 3Q 2015, a 31.1 percent increase on 2014.
BM&FBOVESPA has also reformed its pricing and incentives policies for its securities lending services.
Rebates were removed in the securities lending service.
There was also a rebalancing of prices charged on interest rates in BRL contracts, adjustment in depository service prices and a review of prices for mini futures contracts and in 3Q, new commercial policy for market data and changes to the over-the-counter derivatives pricing policy.
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