B3

B3 enjoys a dominant position within Brazilian financial markets, although the competitive landscape is intensifying with new entrants such as Base Exchange launching this year backed by an Abu Dhabi financial institution.

In absolute terms and relative to larger Global exchanges, B3’s valuation is attractive, particularly given its high operating margins and expansion into new revenue streams such as Bitcoin Futures as well as continued strong growth in fixed income and ETFs. B3 also returns significant capital to shareholders, R$5.3bn in FY 2024.

B3 offers exposure to one of the world’s 10 largest economies and the largest in Latin America, as well as a stock market which is trading at the low end of global valuation ranges. 

B3 has no direct exposure to revenue from negative screening categories though as an exchange and platform for company listings may have indirect exposure. The company has ambitious Net Zero targets for Scope 1 &2 emissions by 2030 but no targets for Scope 3.

Cybersecurity is an emerging risk area for the sector and one where we are seeking greater clarity. As B3 manages significant volumes of sensitive financial data, the potential impacts of a could be material.

Beyond direct financial losses, such incidents could cause reputational damage and erode customer trust. We continue to monitor how firms in this space are addressing data security and resilience.