The FIA Principal Traders Group (FIA PTG) joined the FIA European Principal Traders Association (FIA EPTA) in responding to the Comissão de Valores Mobiliários' (CVM - Brazil's securities and exchange commission), public call for contributions to the regulatory discussion involving equity market structure in Brazil.
For many years, FIA PTG and FIA EPTA have advocated for competitive, transparent and efficient markets. We do not feel the current state of broker preferencing, and specifically the retail liquidity provider (“RLP”) mechanism in the Brazilian markets meets these principles. As a result, we recommend that CVM not expand the existing RLP program and encourage CVM, along with the B3 Exchange, to consider broader reforms to increase competition in their markets.
