Rio Stock Exchange Ceases Trading
Apr. 28, 2000
RIO DE JANEIRO, Brazil (AP) _ Brazil's oldest stock exchange ended trading for good on Friday, engulfed by its more powerful rival in Sao Paulo.
From now on, all share trading previously done on the Rio de Janeiro Stock Exchange will be carried out by the Sao Paulo Stock Exchange, Latin America's largest bourse.
Starting in July, the Rio exchange, known as BVRJ, will trade exclusively in government securities. It also will be the forum for privatization auctions of government companies.
Founded by imperial decree in 1845, the Rio Stock Exchange was the country's main bourse for more than a century. But it never recovered from a trading scandal in 1989, when high-rolling investor Nagi Nahas defaulted on payment of about $10 million.
The Rio Exchange suspended operations, six brokerages collapsed, and many investors shifted operations to Sao Paulo.
Trading volume Thursday on the Sao Paulo Exchange was about $611 million, while Rio's volume was just $15.6 million.