By Brazil Stock Guide – Brazil’s antitrust authority, the Administrative Council for Economic Defense (Cade), has launched an investigation into B3 S.A. (B3SA3.SA), the country’s sole stock exchange, over allegations of anticompetitive practices. The probe, reported by Investing.com, follows a recommendation from Cade’s General Superintendence (SG), which found evidence suggesting that B3 is exploiting its market power to obstruct the entry of new competitors, including CSD BR, a rival central securities depository.
According to Cade’s technical review, B3’s conduct “artificially raises entry and expansion barriers, hindering the performance of new agents and perpetuating B3’s dominance in critical segments of financial market infrastructure.” The report said the interoperability issues in settlement systems have delayed CSD BR’s operations and continue to prevent its effective participation in the depository market.
Alleged abusive practices
Investigators say B3 has used its incumbency in asset registration and its monopoly in other infrastructure markets to offer commercial terms competitors cannot match. The SG cited tactics such as bundled sales, conditional discounts (mixed bundling), exclusivity clauses and client loyalty mechanisms that restrict customer choice.
“These practices directly harm competition in the financial market, limiting the ability of new participants to compete under fair and efficient conditions,” the SG said. The watchdog noted that such behavior increases costs for financial institutions, insurers and their clients.
B3’s next steps
With the case formally opened, B3 has 30 days to present its defense, including potential evidence and up to three witnesses for Cade to hear at its headquarters in Brasília.
CSD BR’s challenge
CSD BR, backed by Santander Corretora (SANB11.SA) and CME Group Inc. (CME), among other investors, secured authorization from Brazil’s central bank in December 2024 to operate a clearing system and act as a central securities depository. The company’s president, Edivar Queiroz, said it is building the infrastructure required to compete head-to-head with B3 by 2027. “We are developing all the necessary structure to compete on equal terms,” he said.
The outcome of Cade’s probe will determine whether CSD BR can secure a foothold in Brazil’s highly concentrated financial infrastructure market, long dominated by B3.