BRICSMART – The Next Gen Global Initiative
The BRICS nations (Brazil, Russia, India, China and South Africa) are few of the most developing & industrialized economies of the decade. Various initiatives have been taken to integrate these nations in terms of financial aspects. In October 2011, leading Exchanges of the BRICS, financial markets had announced a joint initiative to provide opportunity to global investors coined “BRICSMART”.
BRICSMART enables investors from these countries to globalise their capital flow & earn from equity index derivatives which are listed on:
- BM &FBOVESPA from Brazil.
- MICEX-RTS Exchange from Russia.
- BSE Ltd (formerly known as Bombay Stock Exchange) from India.
- Hong Kong Exchanges and Clearing Limited (HKEx), as the initial China representative.
- Johannesburg Stock Exchange (JSE) from South Africa.
These above exchanges which are from the BRICS nations form a part of the exchange alliance & play an important role in opening up new avenues for the investor which will therefore enhance overall economic growth. The BRICSMART financial products are offered to the public in an exchange in the local currency, considering the fact that these products are cross-listed on exchanges.
BOMBAY STOCK EXCHANGE (BSE)
BSE is the first stock exchange which as established in Asia in 1875 after being granted permanent standard under the Securities Contract Regulation Act, 1956.Through this initiative BSE has lived upto their vision since 133 years by introducing the BRICSMART products in their index.
“Emerge as the premier Indian stock exchange by establishing global benchmarks”
Over the years BSE is one of the most well established exchanges in India over the years, being regarded the first exchange to receive ISO certification. In terms of overall nation growth BSE has been a benchmark which has always been take into consideration in terms of rules & regulations for setting up the other 23 exchanges which were set up in India after its independence in 1947.
Formed in 2008 with the integration of the Brazilian Mercantile & Futures Exchange (BM&F) and the Sao Paulo Stock Exchange (Bovespa). Together, the companies have formed the third largest exchange in the world in terms of market value, the second largest in the Americas. The investors in this exchange are open to trade in Equities in cash, options & other spot market transactions on Federal Government Securities, US Dollar. They not only provide transaction services but also hold a exponentially business growth model which also contains registration, clearing, settlement, risk management, and central depository services. IBOVESPA is the only performance indicator of Brazilian stocks that has a liquid futures market which is regarded to be one of the biggest in the world.
MICEX-RTS Group, Russia
The MICEX-RTS Group is the Russian stock and derivatives exchange, which came into existence in December 2011 after the merger of two main Russian exchanges, MICEX and RTS. The exchange provides a whole array of trading and after trade services which are established to compete with the international financial markets which have a very well established & efficient infrastructure in terms of trading environment and functioning. The exchange provides a transparent process for determining fair market values of Russian assets, which is a very essential in a country where the main reasons for development is because of the privatization of state owned property. This exchange includes the top 30 Russian issuers though contracts’ settlement periods are March, June, September and December which may prove to be an hindrance for Investors in the products of “BRICSMART” for clearing of contractual payments.
Hong Kong Exchanges and Clearing Limited
The Hong Kong economy has grown over the past few years through low taxation, least government intervention & the globalization of Chinese currency trade in the offshore markets. The HKEx is one of the premier financial hubs in the Asian time zone providing the best & the most transparent financial trading services. In the years 2009, 2010, 2011 Hong Kong exchanges was one of the first in the world to raise IPO funds from both individual investors & companies all over the world.
Johannesburg Stock Exchange, South Africa
This is the only exchange which is present in South Africa which provides transparent and efficient financial services to investors. It is amongst the top 20 exchanges in the world in terms of market capitalization. The FTSE/JSE Top40 Index consists of South Africa’s top 40 companies with full market capital which provide exchange, trade , commodity & other trading services.