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Combined BM&FBOVESPA-Cetip entity B3 will be 5th largest bourse in the world

The resulting company from the merger between BM&FBOVESPA SA – Bolsa de Valores Mercadorias e Futuros and Cetip SA – Mercados Organizados will be the fifth-largest stock exchange operator in the world in terms of market value, Reuters reported, citing BM&FBOVESPA CEO Edemir Pinto.

Bolsa Balcão Brasil, or B3, as the merger company will be known, will have a market value of about $13 billion, behind only the Chicago Mercantile Exchange with $40.3 billion; Intercontinental Exchange, owner of the New York Stock Exchange, with $35.3 billion; Hong Kong Stock Exchange with $33.6 billion; and Deustche Boerse, with $15.1 billion, executives said in a meeting with reporters to announce details of the merger.

Meanwhile, companies interested in operating the stock market in Brazil have already expressed interest in using the post-market structure of B3, the executives said. The company will open a 30-day public hearing starting the end of April to define access guidelines of eventual competitors to the structure of the central counterparty system and central depository. The provision of these services were part of the conditions imposed by antitrust regulator Cade in approving the deal.

B3's CEO Gilson Finkelsztain said the company will focus on integrating operations in the next 12 months, with a goal of finding new sources of revenue. The company will also announce in the coming weeks which of the group's brands will be maintained and under which ticker its shares will be traded. The group's headquarters will initially be in São Paulo, Pinto said.

In conjunction, BM&FBOVESPA board chairman Pedro Parente will reportedly be appointed to the same position at B3, the newswire said, citing an unnamed source.