Brazil’s Treasury supports the plan to introduce exchange-traded funds that would invest in government bonds, Deputy Treasury Secretary Paulo Valle said.
“It’s a positive project as ETFs help provide liquidity to the public debt market”, Valle said in a telephone interview from Brasilia on Nov. 25. “I view it favorably.”
Brazil’s securities regulator, or CVM, may change regulations to allow banks and bourses to create exchange-traded funds that will invest in government or corporate bonds, said Flavia Mouta Fernandes, head of the CVM’s markets development division, on Nov. 8.
Fixed-income ETFs, which are funds that trade on exchanges like stocks, may help develop local capital markets by increasing trading volumes. U.S. fixed-income ETFs raised a total of $3.8 billion in October, down from $5.7 billion in September, according to Deutsche Bank.