BRAZIL Law and Practice Contributed by: Alessandra Martins and Amanda Blum Colloca, Machado, Meyer, Sendacz e Opice Advogados
the inflow and outflow of foreign currency and AML/CTF rules.
• Commodity exchanges: Commodity trading platforms, including those for agricultural and financial commodities, are regulated by the CVM and may also be subject to oversight by specific commodity regulators. The regulatory regimes for each type of market - place and trading platform may differ in terms of licensing requirements, operational stand - ards, market surveillance and investor protec - tion measures. 6.2 Regulation of Different Asset Classes The regulation of different asset classes is detailed in 3.1 Requirement for Different Busi - ness Models . 6.3 Impact of the Emergence of Cryptocurrency Exchanges The emergence of cryptocurrencies has signifi - cantly changed the Brazilian regulatory environ - ment. The Crypto Law, defined in 3.1 Require- ment for Different Business Models , classifies securities issuance under the CVM’s authority, even if tokenised, while all other crypto-assets are under the BCB’s authority. The BCB issued the ECPs mentioned in 1.1 Evolution of the Fin- tech Market to specifically regulate crypto-asset service providers, which require a licence. 6.4 Listing Standards The CVM uses the Howey test to identify public offerings of crypto-assets as securities. All secu - rities that do not fall under the Howey test clas - sification of publicly traded securities also fall outside the CVM’s scope. Other crypto-assets fall within the BCB’s regulatory scope; though regulations have not yet been issued, public consultation is required, as mentioned in 1.1 Evolution of the Fintech Market .
6. Marketplaces, Exchanges and Trading Platforms 6.1 Permissible Trading Platforms The CVM regulates the public offering of securi - ties, as explained in 3.2 Legacy Players’ Imple- mentation of Solutions Introduced by Robo- Advisers . Currently, banking correspondents cannot offer investment products; therefore, all investment offerings must be made by institu - tions that hold specific licences from the BCB and the CVM. The main marketplaces and trad - ing platforms are as follows. • Stock exchanges: The main stock exchange in Brazil is B3, which operates the equities, derivatives and fixed-income markets. B3 is regulated by the CVM and is subject to spe - cific rules related to trading, listing require - ments and market operations. • Over-the-counter (OTC) markets: OTC trade exists for securities that are not listed on formal exchanges. OTC markets are also regulated by the CVM, with specific rules governing trading, disclosure and investor protection. • Electronic trading platforms: Electronic trad - ing platforms, including alternative trading systems (ATSs) and electronic communica - tion networks (ECNs), are allowed in Brazil for certain types of securities. These platforms are subject to regulation by the CVM, which sets forth rules related to order matching, transparency and fair access. • Foreign exchange market: The foreign exchange market in Brazil is regulated by the BCB, as explained in 5.2 Regulation of Cross-Border Payments and Remittances .
118 CHAMBERS.COM
Powered by FlippingBook