BRAZILIAN SECURITIES AND EXCHANGE COMMISSION UPDATES FOREIGN EXCHANGE MARKET (“FOREX”) BOOKLET
On October 11th 2018 the Management of Market Structure and Electronic Systems (Gerência de Estrutura de Mercado e Sistemas Eletrônicos – “GME / SMI”), in partnership with the Superintendence of Investor Protection and Guidance (Superintendência de Proteção e Orientação aos Investidores – “SOI”) and the Financial Education Coordination (Coordenação de Educação Financeira – “COE / SOI”) of the Brazilian Securities and Exchange Commission updated the booklet referring to the irregular offers of investment in the Forex market
As currency quotes vary freely, under the influence of political events or economic factors, the Forex market is characterized by its high volatility. Thus, although it is useful for hedging strategies against exchange rate variations, Forex trading is considered to be high risk.
In this context, the updating of the booklet objective was to clarify investor doubts and alert them to the risks of such investment, among them: (i) volatility of foreign currencies; (ii) leverage; (iii) purely speculative nature, with no guarantees or liability; and (iv) lack of information and adequate product protection.
Finally, it should be noted that there are no entities in Brazil authorized by the Brazilian Securities and Exchange Commission to operate in this market, and any offer considered illegal by them.
Further information, as well as the full text of the booklet can be found on the Brazilian Securities and Exchange Commission (“CVM”) website (www.cvm.gov.br).