Commodities Brokerage Houses In Brazil

By Walter Douglas Stuber*

Commodities brokerage houses (Corretoras de Mercadorias) are subject to the control and monitoring of the Brazilian Securities and Exchange Commission (CVM) and of the futures and commodities exchanges where they are listed as members, in addition to being members of the Brazilian securities distribution system¹. Rules and procedures to organize and operate a commodities brokerage house have been recently established by Instruction CVM nº 402, of January 27, 2004².

According to Instruction CVM nº 402/2004, "commodities brokerage house" is a corporation accredited to trade in or list transactions with securities and stock on a futures and commodities exchange³. In order to operate, a commodities brokerage house will need a prior registration with the CVM ⁴ and must meet the following requirements: (i) be a corporation (sociedade por ações) or a limited liability company (sociedade limitada); (ii) be admitted as member of futures and commodities exchange⁵;