IDEAS home Printed from https://ideas.repec.org/a/aza/jsoc00/y2024v17i1p56-65.html
   My bibliography  Save this article

Innovation in self-regulatory organisations in the Brazilian capital markets : The BSM Market Supervision case

Author

Listed:
  • Demarco, André Eduardo

    (BSM Supervisao de Mercados, Brazil)

Abstract

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. BSM is the main self-regulator of the Brazilian capital market. It performs self-regulation, supervision and inspection for organised markets managed by B3 — Brasil, Bolsa, Balcao — one of the world’s largest financial market infrastructure companies, providing trading services in an exchange and over-the-counter (OTC) environment. Pursuant to these goals, BSM monitors operations, orders and trades executed in this trading environments, supervises market participants and, if necessary, applies penalties against those who violate regulations. In this paper, the author shares how, in his current role, he verified the need for strategic mapping of BSM’s self-regulatory agenda. The paper aims to map opportunities for creating and updating legal standards that govern the capital market, to establish incentives for economic agents to reduce cost of compliance and make their regulation more efficient and effective. Several key drivers for BSM developments are: autonomy and empowerment, collaborative culture, agility and adaptability, and technology and digital transformation. BSM is adopting innovations in several areas, including trading technology with advanced analytical tools for monitoring electronic trading platforms, risk management systems and advanced analytical tools, as well as market surveillance monitoring: artificial intelligence (AI), machine learning (ML) and other technologies to detect abusive trading activities. Furthermore, it is promoting education and research: workshops, executive education courses and partnerships with universities and market schools and other initiatives to strengthen market understanding and improve trading analysis practices. All these tools bring to self-regulatory organisations (SROs) significant benefits, including greater transparency and efficiency.

Suggested Citation

  • Demarco, André Eduardo, 2024. "Innovation in self-regulatory organisations in the Brazilian capital markets : The BSM Market Supervision case," Journal of Securities Operations & Custody, Henry Stewart Publications, vol. 17(1), pages 56-65, December.
  • Handle: RePEc:aza:jsoc00:y:2024:v:17:i:1:p:56-65
    as

    Download full text from publisher

    File URL: https://hstalks.com/article/8814/download/
    Download Restriction: Requires a paid subscription for full access.

    File URL: https://hstalks.com/article/8814/
    Download Restriction: Requires a paid subscription for full access.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Keywords

    innovation; self-regulatory organisation (SRO); capital markets; BSM Market Supervision;
    All these keywords.

    JEL classification:

    • G2 - Financial Economics - - Financial Institutions and Services
    • E5 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit
    • K22 - Law and Economics - - Regulation and Business Law - - - Business and Securities Law

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:aza:jsoc00:y:2024:v:17:i:1:p:56-65. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Henry Stewart Talks (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.