Brazilian exchange BM&F Bovespa has reported record volumes for equities and derivatives, boosting revenues in the last quarter.
Revenues related to volumes traded in equities and derivatives represented 83.5% of total revenue in Q2 2013, reaching R$558.3 million, according the exchange.
As a result, BM&F Bovespa, Brazil’s sole financial bourse, posted record revenues of R$668.8 million in Q2, up 10.9% from the same time last year.
Equities represented 43.3% of total revenue, or R$289.5 million, up 7.7% when compared to Q2 2012. The average daily traded value in equities reached R$8.3 billion, an increase of 8.5% over the same period last year.
The exchange found volume growth for equities was partially offset by a 3.4% decrease in trading margins resulting from changes in cash equities trading fees, which were implemented in April 1 this year.
BM&F Bovespa dropped trading fees in the cash equities market by 28.5%, the second reduction in two years, in anticipation of increased competition such as US exchange operator Direct Edge, which is looking to launch an equity trading venue in Brazil.
For derivatives, BM&F Bovespa’s revenues from trading and settlement hit R$268.8 million in the second quarter, accounting for 40.2% of total revenue, up by 12.2% on Q2 2012. The exchange said the increase was due to an 8.7% increase in average daily volume and a 1.6% rise in average rate per contract, as a result of the depreciation in the Brazilian real against the US dollar.
In June, a Brazilian delegation toured Europe to encourage direct investment in the country, with stops in London, Zurich, Luxembourg and Paris.
Days after visiting London, Brazil’s finance minister, Guido Mantega, scrapped the controversial 6% financial tax, know as IOF, on foreign investment in fixed income. The tax was set up as a measure to keep the real weak for exporters. The tax was removed from equities trades in 2011.