Bloomberg News reports that high-speed trading is the only part of Brazil’s stock market that’s growing, as fees, trading volume and new-share offerings decline. Before UBS bought Link Investimentos last year, giving it the fastest-growing brokerage in the country, Credit Suisse dominated trading since at least 2007, according to BM&FBovespa rankings through May.
Barclays and Deutsche Bank are among companies that have scaled back their equity teams in Brazil in response to the decline in underwriting revenue and trading volume. Trading this year will be even lower than usual due to the World Cup soccer tournament, according to Edemir Pinto, CEO for BM&FBovespa.
'Since the 2008 crisis, the environment for broker-dealers is getting tougher every year, with costs rising due to increasing technological needs and revenue falling due to reduced fees and trading volume', Pinto said in an interview. The traditional brokerage firm focused only on the equity market “'s destined to die', he said.
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