Bolsa de Valores de Sco Paulo (Bovespa), the most important stock exchange of Latin America, announced a partnership with another nine stock exchange markets from the US, Asia and Europe in order to form the Global Equity Market (GEM), a global market for stocks.
The electronic system of information will allow investors to have a broad vision of online transactions since the database of some of the most important markets will be integrated.
The formal agreement will be signed next June 19th in the US. But prospects say GEM will be available only next year.
GEM will be integrated with four members of the Americas stock exchange market: NYSE, Toronto, Brazil, and Mexico; three from Europe: from group EuroNext, formed by the stock exchanges of Paris, Brussels and Amsterdam; and three from Asia: Tokyo, Hong Kong and Australia. By the agreement, even with the integrated service, each stock exchange market could maintain its individuality.
The agreement with nine international stock exchange markets annulled the negotiations between Bovespa and Nasdaq to form an integrated technological Latin American stock exchange market.
The companies listed at GEM have an estimate market value of approximately US$ 20 trillion, which represent 60% of the value of world-wide stock market. GEM will be available 24 hours a day, seven days a week, due to its broad range of companies, scattered all around the world.
From 400 companies listed at Bovespa, around 200 may join the GEM.