Banco Fator SA'sbrokerage arm Fator SA Corretora deValores will stophandling clients' stocks and derivatives orders in the wake of a in Brazil's capital markets,Reuters reported April 11.
The head of Fator's brokerage operations, Rodolfo Froes, reportedlysaid that through the move the company is seeking to release capital that it canallocate to its public and corporate fixed income operations.
The plan, which requires BM&FBOVESPASA's approval, could help free up to 40 million Brazilian reais, thepublication noted.
Meanwhile, the bank is reportedly negotiating with two or threebrokers to pass on its client orders in asset management to them.
Earlier in January, Banco Fator announced plans to reduce thescope of activity of its brokerage arm to cut costs "in the light of challengesfaced by the Brazilian economy." The bank stopped operating in equity researchmarket and closed its brokerage office in Rio de Janeiro.
As of April 8, US$1 wasequivalent to 3.63 Brazilian reais.