B3 data error that inflated foreign exchange volume in 2022 by 42% by Reuters

Written by Andre Roman

São Paulo (Reuters) – B3 (SA 🙂 on Friday announced a systematic review of variable income sector data, which has led to a decline in the balance of foreign capital entering the Brazilian stock exchange in 2022 by about 27 billion reais.

Louis Koddick, B3’s director of product and data, explained in an interview with reporters that the company discovered an error related to the wrong insertion of stock loan data. B3 is now in the process of revising the 2020 and 2021 numbers, as the 2022 part has already been completed.

Since October 2020, trading data by investor category (institutional, foreign, individual) released by B3 has included equity loan operations on display (which began showing that month). “This kind of operation should not be accounted for,” Kodic said, because he has no cash flow.

Screen loans account for about 30% of the total equity loan flow on B3, according to the company.

For 2022, the balance of foreign capital inflows into the stock market, which was 91.1 billion riyals until March 30, reached 64.1 billion riyals, down 29.6%.

Kodic said the revision of the rest of the numbers has no date to be completed and has no impact on B3’s financial and accounting statements.

The entry of foreign inflows into the Brazilian capital market is seen as one of the main reasons for the good performance of 2022. Asked if the review changes the reading of the performance of the Brazilian stock market this year, Kodic said that only B3 identified the error and that the reading and assessment of the overall scenario ” Leave it to the analysts.