BSM - MARKET SUPERVISION - B3
Who we are
BSM is the B3 group’s self-regulation division. It has administrative and budgetary autonomy to perform surveillance activities in the markets that B3 operates by:
- Providing guidance for B3’s markets
- Monitoring operations, orders and transactions in trading environments
- Auditing B3 participants
- Operating the investor compensation mechanism (MRP)
- Bringing administrative actions against those in breach of the rules.
Pursuant to these goals, we monitor operations, orders and trades executed in our trading environments, supervise market Participants and, if necessary, apply penalties against those who infringe regulations.
The capital market plays an important part in Brazil’s economic development. It meets a large part of companies’ financing requirements and protects against market fluctuations.
It is also an important investment alternative for individuals and corporations that want to earn from their savings. We are committed to promoting market integrity and protection for investors and other market agents. We follow the highest ethical standards in strict compliance with the laws and with market best practices.
BSM Market Supervision follows the B3 Code of Conduct, which deals in broad terms with the values that guide the B3 Group. This demonstrates how the B3 Group’s collaborators are committed to the rules of business and social ethics and to principles of transparency, equal rights, diversity and accountability, being duty bound to both internal and external compliance.
See how we are organized:
BSM Market Supervision - Supervisory Board
The main duties of the of the BSM Market Supervision - Supervisory Board are:
- to adjudicate Disciplinary Administrative Proceedings (PAD) and penalize Participants that breach rules
- to adjudicate investors’ appeals against the Chief Regulatory Officer’s decisions in Investor Compensation Mechanism (MRP) disputes
This Board has up to 12 members, of whom at least two thirds are independent. It is responsible for approving the Work Program, Budget Proposal and BSM Market Supervision Activities Report.
Supervisory Board Members:
André Eduardo Demarco *
Aline de Menezes Santos
Carlos Cezar Menezes *
Henrique de Rezende Vergara *
José Flávio Ferreira Ramos
João Vicente Soutello Camarota
Marcos José Rodrigues Torres *
Marcus de Freitas Henriques *
Murilo Robotton Filho *
Rodrigo de Almeida Veiga *
Sergio Odilon dos Anjos *
* Independent members
What we do
In collaboration with the Securities and Exchange Commission of Brazil (CVM) and Central Bank of Brazil, our team assures that the institutions and their professionals comply with market regulations. Our main activities are:
- market surveillance - We monitor 100% of orders and transactions in B3’s markets for signs of irregularities.
- auditing - We audit all B3 Participants for compliance with the regulations and against breaches of market rules.
- disciplinary processes and other enforcement actions - In accordance with the severity of regulation breaches, we adopt guidance, persuasion or disciplinary measures such as letters of recommendation, letters of admonition or Disciplinary Administrative Proceedings.
- Loss compensation - We analyze and adjudicate complaints to the Investor Compensation Mechanism (MRP), which awards damages of up to BRL 120,000 to investors harmed by B3 Participants’ inappropriate activity or omissions.
- market development – We support education initiatives, propose rule enhancements and work closely with B3’s Participants and in partnership with the regulatory bodies. We seek alignment with best practices through our relationship with international organizations.
See our Annual Reports:
Events and Publications
BSM - MARKET SUPERVISION participates in the main international forums held for securities market regulators and self-regulators, such as IOSCO, COSRA, ISG, AMCC/IOSCO. At the following links you may access the presentations that BSM - MARKET SUPERVISION has given at these forums or at other international events and training courses.
Rules and Regulation
- Market Guidance | Circular Letters - 3/2020-CVM/SMI and 6/2020-CVM/SMI August 6, 2021
- Market Guidance | Stress testing the infrastructure?s capacity - Res. CVM CVM 35/2021 | September 24, 2021
- Clarifications about Trading Securities Outside of the Markets Operated by B3 – BSM & B3: October/2020
- Risk-Based Approach (RBA) and Simplified Registration of Nonresident Investors (NRI) – BSM & B3: October/2020
- Supervision and Monitoring of Intentional Self-Trading in Auctions - presentation and regulation BSM & B3: August/2020
Presentations held by BSM - MARKET SUPERVISION at international events
- Layering and spoofing: the BSM - MARKET SUPERVISION approach to detect and combat abusive practices - IOSCO Committee 2, Berlin, November 2018
- Market Surveillance and Enforcement in an extreme volatility scenario – IOSCO AMCC Seminar, Budapest, May 2018
- Institutional presentation – February 2015
- Recent Trends in Market Surveillance - The Brazilian Case – 8th IOSCO AMCC Training Seminar Zurich, October 2015
- BSM - MARKET SUPERVISION Market Surveillance: Cases of Market Manipulation and Insider Trading – 7th IOSCO AMCC Training Seminar Tokyo, April 2014
- Risks on Securities Markets Regulation, Supervision and Enforcement – São Paulo, October 2013
- Disciplinary Processes and Settlement Agreements – IOSCO AMCC Ahead of the Curve Working Group Luxembourg, September 2013
- Secondary Market Developments: High Frequency and Algorithmic Trading – IOSCO SROCC Training Seminar Toronto, May 2013
- Algorithmic and High Frequency Trading in the Brazilian Market – IOSCO SROCC Training Seminar Toronto, May 2013