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Brazilian Capital Markets: Technology Drivers and Trends

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21 January 2015

Abstract

Within the growing Latin American region, Brazil is seen as an economic powerhouse, being the largest and most developed market. It has seen rapid growth and improvement in its capital markets infrastructure.

There are several market opportunities for foreign vendors in the Brazilian market, including the need for regional and global trading platforms for firms that are diversifying from their home markets, and growing risk management requirements.

In the report Brazilian Capital Markets: Technology Drivers and Trends, Celent assesses the prospects for the Brazilian capital market. Global financial institutions and vendors consider it to be an attractive market, but one that can be complex and even a little daunting at first. Unlike some of its Latin American counterparts, but in common with other large emerging markets such as China and India, Brazil usually requires significant local presence for a market entrant to become successful.

The overall market for IT spending will grow from US$2.0 billion in 2013 to reach US$2.6 billion in 2017 at a CAGR of 6.7%. Key factors for growth include rationalization of legacy systems, higher usage of cross-asset platforms, greater integration with the US market, use of more flexible modes of deployment, and big data analytics.

“Brazil is more complex than other Latin American markets,” says Dr. Anshuman Jaswal, a senior analyst with Celent’s Securities & Investments practice and author of the report. “It is important to develop strong local implementation capabilities and adapt products to suit the market’s specific requirements.”

This is the second of a three-report series. The first provided an introduction to some of the leading capital markets, namely, Brazil, Mexico, Colombia, and Chile, and compared them across parameters such as market and socioeconomic indicators, and size distribution of local brokerage and asset management firms. In this report, Celent looks at the Brazilian market and provides an overview of the leading sell side and buy side players, market trends and characteristics, important market drivers, and IT spending estimates. The third report undertakes a similar study for the Mexican market.