Latin American Capital Markets

384 A. M. CORCORAN, R. B. HOBSON, G.J. KUSERK, K. K.WUERTZ.AND QWESTAppendix Table 11-1 I Economic and Capital Market IndicatorsI for Brazil, 2001IndicatorMacroeconomicGross domestic productBillions of U.S. dollarsBillions of reaisConsumer price index increase (percent)Balance of trade surplus (billions of U.S. dollars)Total external debt (billions of U.S. dollars)Exchange rate (reais per U.S. dollar)June 1999June 2000June 2001December 2001June 2002Capital marketStock market capitalization (billions of U.S. dollars)Corporate debt market (billions of U.S. dollars)Sovereign debt market (billions of U.S. dollars)Sub-sovereign debt market (billions of U.S. dollars)Sovereign debt rating by S&P as of September 8, 2000Local currency, long termOutlookLocal currency, short termForeign currency, long termOutlookForeign currency, short termValue503.91,184.807.672.64209.91.76951.80002.30492.32042.8444185.416.33163.37103.41BBPositiveBB+PositiveBThe BM&F has an in-house department that acts as a central counterpart.Clearing members must maintain minimum net working capital set by the ClearingDivision, post collateral to fund the Clearing Fund, comply with the limits imposed onpositions for which they are responsible, and participate in or provide a commonbond against default of other members up to a specified amount. Brokers and localsalso must meet minimum requirements of operational capacity and financial standing.Clearing members may impose additional limits on brokers and locals.Brazil provides an example of a market that developed largely on a self-regulatoryor private contractual plan—that is, a bottom-up market (similar to those thatdeveloped in the United States), not a top-down approach as some jurisdictions havetried to promote.Copyright © by the Inter-American Development Bank. All rights reserved.For more information visit our website: www.iadb.org/pub