The A5X Funding Round Raises US$70 Million to Break B3’s Grip on Brazilian Derivatives
BRAZIL · MARKETS
Key Facts
- —The incumbent B3 in São Paulo is Brazil’s only exchange, with no domestic competitor at all.
- —The challenger A5X, a startup building a rival venue for futures and other derivatives.
- —The money 360m reais, about US$70m, valuing the company at roughly US$525m.
- —Who put it in Morgan Stanley, Goldman Sachs and a venture fund, alongside global trading firms.
- —Why them Those trading firms would be the customers. Cheaper fees improve their own economics.
- —The catch Launch has slipped to 2027, and no regulator has said publicly that it may open.
The investors in this exchange are the firms that would trade on it. That tells you what they think of the current one.
Most large economies have more than one exchange, and the competition keeps fees honest. Brazil has B3 in São Paulo, and nothing else, which is what the A5X funding round is aimed at.
A group of international trading firms has decided to do something about it. Monday’s round raised 360m reais, about US$70m.
Who Is Paying
Morgan Stanley, Goldman Sachs and the venture fund Kaszek led the round. The valuation attached is 2.7bn reais, about US$525m, after the money went in.
The list underneath the leads is the interesting part. IMC, Jump Trading, Optiver, XTX Markets and ABN AMRO Clearing all took part.
Those are market makers and high-frequency trading firms. They are the businesses that would provide liquidity on the new venue from its first day.
In other words, the investors are the intended customers. They are funding a competitor to the exchange they currently have no alternative to.
XP, a large Brazilian broker, came in by exercising an option. An Itaú brokerage has been an investor since 2024, and total funding across four rounds now exceeds 730m reais, about US$143m.
Not a Stock Exchange
A5X is routinely described as a stock exchange challenger, and its own materials say otherwise. It will open focused on listed derivatives.
The planned products are futures and options on equity indices, single stocks, currencies, local interest rates and crypto assets. Share trading is not the opening proposition.
That is a sharper attack than it sounds. B3’s profits come overwhelmingly from derivatives, particularly index and interest rate futures, rather than from cash equities.
A rival in derivatives aims at the part that pays. Calling it a stock exchange understates what is being attempted.
The company is also building its own clearing house, which is the hard part. It licenses trading and clearing technology from the London Stock Exchange Group and adds Brazilian infrastructure of its own.
A Year Later Than Planned
Monday’s announcement gives a launch in the second quarter of 2027. As recently as June 2026 the company was guiding to the fourth quarter of this year.
That is a slip of two or three quarters, disclosed inside a funding release. It is arguably the most newsworthy line in the document.
Delays at this stage are common and not alarming in themselves. Building a clearing house from nothing is a multi-year exercise anywhere.
What the slip does change is the arithmetic of cash. A venue with no revenue and a later start needs more capital, which is one reading of the A5X funding round itself.
The Question Nobody Answered
No source confirms that A5X has been authorised to operate. The company said in late 2024 that it had submitted documentation to regulators.
Monday’s releases say the proceeds will cover regulatory capital. That phrasing fits an application in progress rather than one granted.
A Brazilian derivatives venue with its own clearing house needs two approvals. The securities commission authorises the market, and the central bank authorises the clearing and settlement system.
Neither has been announced. That single question decides whether a 2027 opening is realistic, and the funding announcement went nowhere near it.
The Incumbent Is Not Standing Still
B3 spent the same Monday launching a dollar version of its main index. It also announced a market neutral index, and it will let foreign-listed Brazilian companies into the Ibovespa from 2027.
Each of those makes the exchange easier for foreign money to use. None of them lowers a fee.
Whether an incumbent that modernises leaves room for a challenger is the open question here. Nobody finds out before the second quarter of 2027.
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Frequently Asked Questions
How much did A5X raise?
360m reais, about US$70m, in a round announced on 14 September 2026 and led by Morgan Stanley, Goldman Sachs and Kaszek.
What is the valuation?
2.7bn reais, about US$525m, which the company states is after the new money went in. The figure before it has not been disclosed.
Is A5X a stock exchange?
No. It is a venue for listed derivatives, planning futures and options on indices, single stocks, currencies, rates and crypto, and building its own clearing house.
When does it launch?
The second quarter of 2027, according to Monday’s announcement. In June 2026 the company was still guiding to the fourth quarter of 2026.
Has it been authorised?
No authorisation has been announced. A Brazilian derivatives venue with its own clearing house needs approval from both the securities commission and the central bank.
Sources: Money Times, BPMoney and Business Moment of 14 September, Capital Aberto of June 2026 and the company’s own website.
This article was produced by The Rio Times’ automated newsroom system. How we use AI · Report an error · Editorial responsibility: Matthias Camenzind, Editor-in-Chief
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