The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site. Please see our Subscription Terms and Conditions.

All material subject to strictly enforced copyright laws. © 2022 Euromoney, a part of the Euromoney Institutional Investor PLC.

Latin America: Brazilian brokers wave the offside flag

Since demutualization, Brazil’s stock exchange, the BM&F Bovespa, has become hugely profitable and powerful but the majority of its brokers are struggling for survival. Doubts remain as to whether their mutual interests can be realigned but there is little sympathy for the brokers.


"The Bovespa is like the CBF [Brazilian Football Confederation] and the brokers are like the clubs: the former is very rich and very powerful, while the latter do all the work and are going broke.”

Ricardo Lacerda, founder and CEO of BR Partners, uses this simile in an interview with Euromoney about the development of his business model. He is explaining why he closed down his nascent equities desk shortly after launch. Essentially, he says, he soon realised that the ECM business was not going to make a profit, and rather than have the other areas of the bank subsidise it for the sake of being able to claim a full-service capital markets platform, he shut it down.

“It was a tactical move; we couldn’t afford it,” says Lacerda. “We looked at the capital we would need to invest, somewhere between one third and one quarter of all capital, and with no certainty of return. It was an easy decision to make.”

Part of the problem is clearly macro – equities in Brazil are an underdeveloped asset class for a variety of reasons, but largely because the risk-free rate is so high (assuming overnight sovereign credit is such).

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.


Unlimited access to and

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually


Unlimited access to and, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors


Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree