The national financial system
B3 and the role of exchanges
4 min
An exchange is the organized marketplace where securities are listed and traded under one set of rules and one transparent price.
B3 — Brazil's exchange
B3 (Brasil, Bolsa, Balcão) is the central exchange and clearing house in Brazil, formed in 2017 from the merger of the old stock exchange (BM&FBOVESPA) and CETIP. It is where shares, ETFs, government and corporate bonds, options and futures are traded. Internationally, well-known peers include the NYSE and Nasdaq in the US, the LSE in London and the TSE in Tokyo.
What an exchange actually provides
- A central order book — buyers and sellers meet in one place, producing a single, visible market price.
- Standardized contracts and listing rules — so every share or contract of a kind is identical and comparable.
- Clearing and settlement — the exchange (through its clearing house) guarantees that trades complete, even if one side defaults. This is what lets strangers trade with confidence.
- Custody — securely recording who owns what.
- Transparency — public prices, volumes and disclosures.
Exchange vs the alternative
Not everything trades on an exchange. Some assets trade over the counter (balcão) — directly between two parties, off the central order book. We compare the two in detail in the final chapter. For now, remember the exchange's role: it is the trusted, transparent meeting point that makes large-scale, anonymous trading possible.
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