Interactive Brokers Adds Brazilian Futures as Latin American Markets Rally

Interactive Brokers has expanded its Latin American offering by adding Brazilian futures through Brazil’s B3 exchange, giving international clients another way to gain exposure to one of the region’s largest financial markets.

The Nasdaq-listed American stock broker said eligible clients outside Brazil can now trade Brazilian futures alongside equities on B3, with the products accessible through the same Interactive Brokers platform used to trade across more than 170 markets worldwide.

Interactive Brokers said it was the first broker to provide international investors with futures trading on B3 and described the futures launch as part of its broader push to open up global and emerging markets to its clients.

Milan Galik, chief executive of Interactive Brokers, said: “Global investors deserve seamless, low-cost access to the world’s most compelling markets, including emerging economies shaping tomorrow’s financial landscape.”

LATAM Bull Markets

According to S&P Dow Jones Indices data, the S&P Latin America BMI has risen 42.08% over the past 12 months, including 15.19% year-to-date. Brazil has also performed strongly, with the S&P Brazil BMI up 26.37% over 12 months, while the S&P Latin America 40 has gained 48.50%.

Some individual markets have done even better. The S&P Peru Select 20% Capped Index is up 73.54% over 12 months and 32.79% year-to-date, while the S&P Chile BMI has returned 34.68% over the year.

Sector performance has also been striking. Latin American energy stocks have risen 62.78% over 12 months and 60% year-to-date, while materials are up 65.66% over the year. Utilities have gained 54.23% and real estate 45.93%.

Latam Indices

The exception has been technology, with the S&P Latin America BMI Information Technology sector down 17.05% over 12 months.

The addition of B3 futures therefore gives Interactive Brokers clients another route into a region that has recently been producing returns well ahead of many developed-market benchmarks, although those gains also highlight the potential volatility involved in emerging-market investing.

However, ironically, access to B3 through Interactive Brokers is not available to residents of Brazil.

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