Brazil, the largest and 12th largest economy in Latin America, has made investors increasingly favor and has also seen it as one of the investment locations for deploying hedging assets. The Singapore Exchange (SGX) will cooperate with the Brazilian Stock Exchange (B3) to jointly launch the Brazilian Real Futures Contracts this year.

According to a statement from the Brazilian Stock Exchange, the SGX announced the news on Monday (March 10) at the International Futures Industry Conference held in Boca Raton, Florida, USA.

Once the Brazilian Real foreign exchange futures contract jointly launched by the two exchanges is approved by the regulatory authorities, it will become the first move by the SGX to enter emerging markets outside Asia. The statement said this will also strengthen the Brazilian Stock Exchange's influence in Asia.

“Investors are increasingly interested in the Brazilian market, and our cooperation with B3 will enable global investors to manage the risks of Brazilian real foreign exchange futures contracts around the clock. This is crucial in today's dynamic market. We look forward to bringing more diverse investment opportunities to global investors.”

“We are building a bridge between Asian and Latin American markets. We intend to expand the link between the two regions through cooperation with Singapore, after all, Singapore is a strategic financial hub for Asia,” said Gilson Finkelsztain, CEO of the Brazil Stock Exchange.

Further reading

SGX expects IPOs to start active in the second quarter. The annual IPO target is at least 10

SGX expects IPOs to start active in the second quarter. The annual IPO target is at least 10

SGX's revenue and net profit hit a new high in half a year, which is expected to increase the number of publicly sold shares this year

SGX's revenue and net profit hit a new high in half a year, which is expected to increase the number of publicly sold shares this year

Reuters reported that Brazil is the main exporter of commodities such as beef, iron ore, soybeans. The government just revealed last Thursday (March 6) that it would cancel import taxes on basic consumer goods such as sugar, coffee, corn, beef, etc. in order to reduce food prices.

SGX and the Brazilian Stock Exchange will cooperate to promote the above-mentioned Brazilian Real Forex futures contract to promote its trading convenience on both platforms.