Gabriela de Ávila Machado
Lawyer at Marcos Martins Advogados
On September 1st, CVM Resolution 3 came into force, easing some restrictions on the trading of BDRs (Brazilian Depositary Receipts). BDRs are depositary receipts, a security issued in Brazil, which represent another security abroad. According to B3 itself, they are
“an alternative for portfolio diversification, as they can be accessed in a simple way, through the brokerage systems, without the need to send money abroad and without worrying about currency conversion.”
The CVM then approved the final version of B3’s Regulations for the Listing of Issuers and Admission to Trading of Securities, thus making it possible for individual investors to trade BDRs (Brazilian Depositary Receipts). Thus, as of October 22, brokers are authorized to offer these securities, “as long as they represent shares of foreign companies or ETFs traded on a ‘recognized market’,” according to B3.
