March 27 (Bloomberg) -- BM&FBovespa SA, the operator of Latin America’s biggest securities exchange, started a bidding process to select the manager of a second exchange-traded fund that tracks Brazil’s benchmark equity index.
The exchange wants to “increase the diversity of products offered to the market” with the new ETF tracking its main stock gauge, BM&FBovespa said in a statement on its website.
There are 12 ETFs trading on the exchange. Only one, BlackRock Inc.’s iShares Ibovespa Fundo de Indice, tracks the Bovespa index.
Trading in ETFs on the Sao Paulo exchange totaled 2.18 billion reais ($1.2 billion) in February, or 1.5 percent of all stock trading volume, according to data from BM&FBovespa. Trading on the iShares Ibovespa totaled 2 billion reais last month.
BM&FBovespa will announce the winning bidder on May 7, the exchange said in the statement.
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