Brazilian market

The capital market, when widely developed, plays a key role for the economic growth of a country, it facilitates financing of businesses and projects. We believe that, in Brazil, the capital market has not yet fully complied with this function. The following assumption summarizes ATS Brasil Business Strategy:

"Brazilian Capital Markets are not fully
representative of its economy."

A few facts underlie this assumption:
1 Insignificant proportion of the population invests in stocks,
with similar metrics to Ghana, Kenya and Zambia
2 Low trading volume, taking into consideration the size of the economy
Monthly trading volume as a percentage of GDP
Montlhy trading volume as a percentage of GDP

Sources: WFE 2014 e World Bank 2013

3 Extremely small number of listed companies for the size of the economy
Number of listed issuers and GDP by number of listed issuers
Number of listed issuers and GDP by number of listed issuers
4 Huge concentration in only a few companies
Equities Value traded concentration by company
Equities Value traded concentration by company

Source: Bloomberg (data for May – Oct. 2014)

5 Almost no listed ETFs
ETF's listed by Exchange
ETF's listed by Exchange

Source: WFE 2014

The Brazilian capital markets lag behind the domestic economy both in terms of size and growth potential, and behind a number of international markets as well.


The model ATS Brasil proposes would remove capital market hurdles which constrain both savings and liquidity formation, and allow a variety of investors to better access the securities market and other investment instruments.


The driver of our ATS Brasil project has been the huge opportunity we see to spur growth in the domestic capital markets, enhance liquidity and improve corporate access to long-term finance and capital market lending.

 

SEE ALSO

ATS BRASIL
Praia de Botafogo, 501/202
Torre Pão de Açúcar - Botafogo
22250-040 - Rio de Janeiro/RJ
+55-21-2197-5300
[email protected]