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BM&FBOVESPA divests CME stake; Cetip reportedly accepts merger proposal

* BM&FBOVESPASA – Bolsa de Valores Mercadorias e Futuros said it sold itsentire 4% stake in CME Group Inc.in order to raise funds for the company's proposed merger with . BM&FBOVESPAnoted that based on preliminary estimates, the sale generated an accountingloss of 470 million Brazilian reais, which will impact the firm's second-quarterearnings. Meanwhile, sources close to the negotiations told Folha de S.Paulo that Cetip has acceptedBM&FBOVESPA's takeover proposal, but a formal announcement has not yet beenmade.

MEXICO AND CENTRAL AMERICA

* Mexican banking regulator CNBV has capital requirements for local creditinstitutions facing an adverse situation in financial markets in order to betterprotect the banking system, according to a resolution published in the Official Gazette.

* Grupo FinancieroSantander Mexico SAB de CV and BancoNacional de Comercio Exterior SNC signed memorandums of understandingwith the Korea Trade Insurance Corp., known as K-sure, to promote trade and investment between Korea and Mexico.

* Competition is intensifyingamong Mexican banks as they look to attract credit card customers by offering lowerinterest rates, El Financiero reported,citing Grupo Financiero Santander Mexico SAB de CV CEO Héctor Grisi.

BRAZIL

* Rising delinquency rates in Brazil will put on the financial systemin 2016 as banks see financial margins squeezed by higher provision expenses inpreparation for an adverse outcome, BancoCentral do Brasil said. The central bank affirmed that the financialsystem's solvency is appropriate, given high capitalization levels and the resultsobtained from stress tests.

* EFG InternationalAG said its board will propose a pre-emptive ordinary-share for up to CHF500million to help finance its acquisition of BTGPactual Group Swiss unit BSISA.

* Itaú UnibancoHolding SA Vice President Ricardo Marino said the company is in Citigroup Inc.'s assets in Latin America, El Economista reported. Separately, Marinosaid Itaú will make an extraordinary provision for Itaú CorpBanca, formerly known as Corpbanca, on its losseswith corporate customers, Diário ComércioIndústria & Serviços reported.

* BTG Pactual Group said a four-month investigation conductedby an external committee found noevidence linking the bank to various allegations tied to the arrestof former Chairman and CEO André Esteves. "Based on its investigation, [the]counsel found no basis to conclude that Esteves, BTG Pactual or any of its personnelengaged in any corruption or illegality," the company said.

* Brazil's government deniedfresh allegations on April 7 that President Dilma Rousseff's 2014 re-election campaignwas partly financed by illegal graft funds, Reuters reported. Brazilian AttorneyGeneral Jose Eduardo Cardozo said the government believes it has enough supportin the lower house of Congress to prevent the president from being ousted, the newswirereported separately.

* Total written premiumsin Brazil rose 5.42% year over year in January to 8.45 billion Brazilian reais,while written auto insurance premiums fell 19.8% over the same period to 2.4 billionreais, BNamericas reported, citing data from insurance regulator Susep.

* Brazilian Prosecutor General Rodrigo Janot recommendedthat the Supreme Court prevent former President Luiz Inacio Lula da Silva from beingappointed as current President Dilma Rousseff's cabinet chief, Reuters reported.Janot argued that the appointment was aimed at disrupting a corruption probe intooil firm Petrobras.

* At a reinsurance conference in Brazil, industry leaders saidthat although Brazil faces a range of economic and political challenges, they stillsee great potentialin the country's insurance market, A.M. Best said.

* Inflation in Brazil is expected to declinein 2016 as the effects of a stronger U.S. dollar fade, Banco Central do Brasil PresidentAlexandre Tombini said in a speech. He also said the central bank is not thinkingabout reducing its benchmark interestrate, Reuters reported.

* Brazil is going through one of the most challengingchapters in its history, and if the country's GDP shrinks 4% in 2016 as expected,it will be the sovereign's worst recession in a century, Valor Econômico quoted Itaú Unibanco Holding SA President Roberto Setubalas saying.

* A São Paulo law that requires credit agencies such as SerasaExperian and Boa Vista Serviços to notify debtors before adding their names to adefaultlist may be adopted by other Brazilian states, a move that could drive up thecost of credit, Valor Econômico reported.At least 10 other states are thinking about adopting the law.

* Executives from large Brazilian banks requested a meeting withCaixa Econômica Federalin early March to urge the lender to raise interest rates on housing loans, Folha de S.Paulo reported. That meeting reportedlyinfluencedCaixa's decision to hike mortgage rates on March 28.

* Caixa Econômica Federal has sold23 billion Brazilian reais of bad loans since 2014 in an effort to clean up itsbalance sheet, O Estado de S.Paulo reported,citing analysts.

* Banco Central do Brasil has scrappeda rule that required banks to close customer accounts if they had irregularitieswith Brazil's tax agency, Diário ComércioIndústria & Serviços reported.

* João Albino Winkelmann, a director at Brazilian financial andcapital markets association Anbima, said an increasing number of private bankingclients are individually acquiring cheap local assetsinstead of acting through their companies, DiárioComércio Indústria & Serviços reported.

SOUTHERN CONE

* A group of Argentina's bondholders, including Red PinesLLC, Procella Holdings and VR Global Partners, are looking to prevent the countryfrom proceeding with more than $6.2 billion of debt settlementsuntil it is repaid, Bloomberg News reported.

* Argentina will launch a roadshow in the week of April 11 forthe sovereign's first global bond issuancein 15 years, Reuters reported, citing lead bankers. Argentina has engaged DeutscheBank, HSBC, JPMorgan and Santander to organize meetings in London, New York, Bostonand Washington.

* Following the massive Panama Papers leak, a federal prosecutorin Argentina will investigatewhether President Mauricio Macri deliberately omitted details of his alleged offshoreholdings, Cronista reported.

* Alejandro Vanoli, the former head of Banco Central de la República Argentina, accusedArgentine President Mauricio Macri's government of devaluing the local currencyand eroding the purchasing power of the country's citizens, Cronista reported.

* Chilean authorities are investigatingthe whereabouts of Alberto Chang, the owner of private equity firm Grupo Arcano,amid doubts that the company does not have enough cash to meet its financial obligations,Pulso reported.

PAN LATIN AMERICA

* Fitch Ratings forecaststhat regional GDP in Latin America will shrink by 1% in 2016 after an estimatedcontraction of 0.9% in 2015, with risks largely skewed to the downside. The regioncontinues to suffer from lower commodity prices, moderating growth in China, externalfinancial volatility, and in some cases, political instability.

IN OTHER PARTS OF THEWORLD

* 1Malaysia Development Bhd.'s entire board of directorsoffered to resignafter a parliament inquiry recommended that the fund's top management face criminalinvestigation, The Wall Street Journalreported.

* IIFL HoldingsLtd. said General Atlantic Singapore Fund Pte. Ltd. completedits acquisition of 21.61% equity shares in unit IIFL Wealth Management Ltd. on afully diluted basis.

* U.K. Prime Minister David Cameron admitted that he held a stakein his late father's offshore trust that was named in the Panama Papers, Reutersreports. Cameron said his stake in the Panamanian trust Blairmore was sold in 2010before he become prime minister.

* BNP Paribas SA intends to launch the IPO of U.S. subsidiaryFirst Hawaiian Bank as early as June, according to The Wall Street Journal. The transactioncould value the U.S. bank at between $4 billion and $5 billion.

Matthew Craze contributed to this article.

The Daily Dose has an editorialdeadline 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.