BM&FBovespa SA, Brazil’s biggest securities exchange, said a local lower court ordered it to pay 8.42 billion reais ($4.62 billion) in a civil case related to central bank futures trading around the time of the 1999 currency devaluation.
The exchange said it’s being accused of causing losses for the public coffers, according to a regulatory filing late yesterday. The Sao Paulo-based company denied wrongdoing and said it will appeal the decision.
BM&FBovespa said it doesn’t plan to set aside money as provision for the case because its attorneys assign a low probability that the unfavorable ruling will be upheld by higher courts.
The exchange said it’s being accused of administrative irregularities after the central bank traded currency futures contracts on the BM&FBovespa to prevent the real from devaluing in January 1999.
The ruling refers to multiple lawsuits brought by Brazilian citizens, the exchange said today.