BSM - MARKET SUPERVISION - B3
About BSM - MARKET SUPERVISION
We are a not-for-profit organization that is part of the B3 Group and which was created for the autonomous execution of self-regulation in the markets operated by B3.
We carry out the supervision of these markets and seek to promote their integrity, transparency and efficiency.
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.
See how we are organized:
The main duties of the BSM - MARKET SUPERVISION Supervisory Board are:
- to judge Disciplinary Administrative Proceedings and to penalize Participants who infringe regulations;
- to judge investors' appeals against the Chief Regulatory Officer's decisions in disputes at the Investor Compensation Mechanism (MRP).
The Board has 12 members of whom at least two thirds are independent members. It is also responsible for approving the Work Program, Budget Proposal and BSM - MARKET SUPERVISION Activities Report.
Supervisory Board Members:
Aline de Menezes Santos
Carlos Cezar Menezes *
Henrique de Rezende Vergara *
João Vicente Soutello Camarota
José Flávio Ferreira Ramos
Luis Gustavo da Matta Machado *
Marcos José Rodrigues Torres *
Marcus de Freitas Henriques *
Murilo Robotton Filho *
Rodrigo de Almeida Veiga *
Sergio Odilon dos Anjos *
* Independent members
What we do
Working in close collaboration with Brazil’s Securities Commission (CVM) and Central Bank, our team acts to ensure that institutions and their professionals comply with market regulations. Our main activities are:
- market surveillance – we monitor 100% of orders and trades in B3's markets in order to identify signs of irregularities;
- auditing – we audit all B3 Participants to check their compliance with the regulations and to identify possible infractions of market rules;
- disciplinary processes and other enforcement actions – when regulations are infringed we adopt guidance, persuasion or disciplinary measures such as letters of recommendation, letters of censure or Disciplinary Administrative Proceedings, in accordance with the severity of the irregularity that has been identified;
- compensation of losses – we analyze and adjudicate complaints presented to the Investor Compensation Mechanism (MRP), which awards damages of up to BRL 120,000 to investors harmed by an Exchange Participant’s inappropriate activity;
- market development – we develop education initiatives, rule enhancements and institutional relationships with market participants, regulatory bodies and 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.
- 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