In the beginning of 2005, BM&F launched the Program for Strengthening the Brokerage Sector, which encompasses a series of initiatives aimed primarily at providing economic and operational solidity to the brokers in the derivatives markets.

The first phase of the program – from January 2005 through June 2006 – sought to provide the member Brokerage Houses with more economic and financial robustness, technological updates for their operational bases (through the restructuring of the Fund for Broker Financing), a professional qualification upgrade for their trading and back office desks, and the introduction of additional compliance procedures and requirements.

The second phase—called the Operational Qualification Program (PQO)—was effectively implemented on the 1st of July 2006, through the enhancement of internal controls, identification of specialties and preparation for the future certification of strategic positioning choices.

This group of structural changes is aimed at providing member Brokerage Houses with the necessary capacitation to meet the demands of a market with great potential for growth, underpinned by projections of continuous improvement in the Brazilian economic indicators and the progressive opening of the Brazilian capital markets.

This new reality will certainly result in customers who are more cautious with the quality of the services rendered by brokerage firms, as well as with the operational efficiency and financial capacity of those firms to assume risks. It is, therefore, this scenario which provides the context for the PQO.