New Stock Exchange in Rio de Janeiro Set to Begin Operations in 2025

Base Exchange, a newly established stock exchange based in Rio de Janeiro, is set to launch operations in 2025. This development marks a significant shift in Brazil’s financial landscape.

The emergence of Base Exchange comes more than twenty years after Brazil’s second-largest stock exchange merged with São Paulo’s Bovespa, now known as B3. The new exchange will be under the control of Mubadala, an investment company from Abu Dhabi.

Claudio Pracownik, the CEO of Base, announced that the exchange will undergo a testing phase lasting up to six months before its anticipated launch in the latter half of 2025.

Initially, Base Exchange will focus on trading stocks, real estate funds, and exchange-traded funds (ETFs). It plans to implement its own clearing and settlement structure.

According to Pracownik, there are intentions to expand services in the future to include futures and derivatives trading. While Base aims to offer listing services, it will primarily concentrate on companies already listed on B3 in São Paulo.

Pracownik emphasized the necessity of competition within the market, stating, “It is clear that there is room for competition.” He added that competition enhances security within financial markets.

B3 acknowledged this new competitor, stating that they compete for Brazilian company listings, foreign investment allocation, and fixed-income product services.

However, they also warned that a new exchange could fragment liquidity and potentially increase overall transaction costs. This new development reflects broader trends in global finance where competition can drive innovation and efficiency.

As Base Exchange prepares for its launch, it may reshape investment dynamics within Brazil and attract attention from international investors looking for opportunities in emerging markets.