1. Financial Derivatives market of Brazil

2. OUTLINE – Derivative market in Brazil – Derivative users in Brazil – Factors Contributing to the growth of derivatives – Instruments being used in derivative market – Concluding remarks on the derivative market situation of Brazil – Recommendations

3. Derivative market in Brazil Back in 1970s, futures market traded only in agriculture and mineral commodities. In Brazil, BM&F (futures and Commodities exchange) is worth mentioning. From BM&F combination with the Sao Paulo stock Exchange(Bovespa), BM&FBOVESPA(Futures, Commodities and Stock Exchange) emerged as the world’s 3 rd largest stock exchange.

4. The BM&FBOVESPA(Bosla de Valores, Mercandorias & Futuros de Sao Paulo) is an exchange located at Sao Paulo, Brazil.

5. Structure of Brazil’s Derivative Markets Exchange traded derivatives Over the counter markets

6. Derivative Users in Brazil Derivative Dealers Customers or End Users in derivative Markets

7. Factors Contributing to the growth of derivatives Globalization Technological Advancement Price Volatility Advances in Financial theory

8. Brazil’s Economic Indicators High Inflation High Interest rates Exchange rate Fluctuations

10. Instruments Used in Brazil Derivative Market Forward Futures Options Swaps

11. Types of Contracts Forward contracts Foreign exchange forward Non-deliveralble forwards Futures Options Flex Options

12. Analysis of Some Research Findings

13. Concluding Remarks

14. Recommendations & Suggestions Improve transparency & surveillance of OTC derivative Use of new risk management models. Government policies Supervision, oversight and regulation of counter parties Low trading cost and risk distribution

15. Thank you