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Brazil's B3 settles with antitrust body; Chile passes bank modernization bill

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Brazil's B3 settles with antitrust body; Chile passes bank modernization bill

* Brazil's antitrust regulator CADE approved an agreement with B3 SA – Brasil, Bolsa, Balcão, in which the bourse was ordered to pay 9.4 million reais resulting from an investigation into B3's alleged unlawful competition in the securities market. The probe stems from a 2016 complaint lodged by ATS Brazil and Americas Clearing System. In a separate statement, B3 also made several commitments to facilitate the access of other companies to equity market infrastructure.

* The Chilean Congress approved the banking modernization bill, Diario Financiero reported. The bill, initiated by the previous administration, will "reduce the contingent liability of the State in the face of a financial crisis, because banks will be better capitalized," Finance Minister Felipe Larraín said.

MEXICO AND CENTRAL AMERICA

* Mexico's state-run development bank Banco Nacional de Comercio Exterior S.N.C. Institución de Banca de Desarrollo secured a $50.0 million credit line from Spain's Instituto de Crédito Oficial. The Mexican bank will use the funds to extend financing to Spanish companies operating in Mexico and Mexican companies that have business relationships with firms which have Spanish interests.

BRAZIL

* Judicial recovery applications in Brazil were down 10.9% annually in September to 90 incidences during the month, according to credit research firm Serasa Experian. For the nine-month period between January and September, judicial recovery requests ticked to 1,072 instances from 1,087 a year ago. Meanwhile, bankruptcy filings in September were down 29.8% year over year to 125 incidences.

* Caixa Econômica Federal's third quarter profit should be the same with that of the second quarter to achieve the objective of an annual recurring result of 9 billion reais, Valor Econômico reported. "The recurring profit guarantees the basis for the expansion of the bank," President Nelson Antônio de Souza said.

* Banco Nacional de Desenvolvimento Econômico e Social created a credit fund of 1.2 billion reais for corporate clients, together with other entities and private investors, Valor Econômico reported. The objective is to provide long-term credit for up to seven years to medium-sized companies without access to the capital market.

* Brazilian financial institutions believe political risk brought about by the upcoming elections is most probable in the short term and has the greatest impact on their interests as they face difficulties in mitigating risks with internal strategies, Valor Econômico reported, citing the central bank's latest survey of financial stability.

* Brazil's finance ministry warns that the next government will have to protect minority investors from state-owned companies to secure the necessary resources for new projects, Diário Comérico Indústria & Serviços reported, citing the ministry's executive secretary, Ana Paula Vescovi. The public budget for 2019 for investments will be only 20 billion reais, said Vescovi.

* Fitch Managing Director Ricardo Carvalho said that as many issuers have enough liquidity in the short-term, "the degree of commitment of the new government to crucial structural reforms would be an important driver for longer-term credit quality."

* The Brazilian antitrust council CADE will investigate MasterCard, Visa, American Express and Elo for the contractual conditions imposed on other companies that would allow obtaining sensitive information about their competition, Valor Econômico reported. The investigation comes from a query made by the electronic payment company Redecard SA.

* XP Gestao de Recursos Ltda. requested its investee company Qualicorp Consultoria e Corretora de Seguros SA to not pay the 150 million reais agreed in a non-competition contract with the latter's founder and president, José Serpieri Filho, Folha de S.Paulo reported. Brazil's CVM securities commission is investigating this case.

SOUTHERN CONE

* U.S. company Odyssey Group is planning to install 150 ATMs in Argentina by the end of 2018, about 80% of which should be bitcoin-operational at the start of next year, and Odyssey subsidiary Octagon is hoping to install about 1,600 machines in the next year as well, Reuters reported. Another company, Athena Bitcoin, said it already set up a cryptocurrency ATM in Buenos Aires in September.

* The reform the Chilean government is preparing on pension systems "would not provoke disruptive changes in the industry" or in the fund managers of the country, Diario Financiero reported, citing a report by BICE Inversiones Corredores de Bolsa SA.

PAN LATIN AMERICA

* Cybersecurity firm FireEye said that the theft of $10 million from Banco de Chile in May was the work of a group of North Korean hackers nicknamed APT38, Diario Financiero reported. The report said the same group is responsible for the cyberattacks on financial entities in Mexico at the beginning of the year.

IN OTHER PARTS OF THE WORLD

* Asia-Pacific: CBA sets aside A$100M legal fund; Malaysia issues Islamic finance norms

* Middle East & Africa: Trade Bank of Iraq eyes Gulf lender; Liberty plans job cuts; Uganda lifts rate

* Europe: Danske Bank could face $9B fine; regulators approve CYBG/Virgin Money merger

Pablo Jiménez Arandia contributed to this article.

The Daily Dose has an editorial deadline of 8:00 a.m. São Paulo time, and scans news sources published in English, Portuguese and Spanish. Some external links may require a subscription. Links are current as of publication time, and we are not responsible if those links are unavailable later.