São Paulo – Rio de Janeiro Mayor Eduardo Paes signed into law on Wednesday (3) the bill putting in place incentives and clearing the path for the establishment of the Rio de Janeiro Stock Exchange. The new over-the-counter market will start operating in a testing phase later this year and is being established by Americas Trading Group (ATG), a company that belongs to Abu Dhabi’s sovereign wealth fund Mubadala Capital.
The ceremony when Paes signed the bill into law was held in the headquarters of the Commercial Association of Rio de Janeiro and was attended by local officials and ATG executives. The location where the new stock exchange will be established hasn’t been picked yet.
Stock exchange represents Rio’s economic leading role
On his social media, Paes confirmed the announcement. “Rio’s stock exchange shows how our city is retaking an economic leading role,” he said on his Instagram profile. The bill Paes signed into law had been passed by the City Council. It brings down the tax on services (ISS, acronym in Portuguese) to 2%, Agência Brasil reported.
“The new stock exchange will have its head office in Rio de Janeiro. It’s very important for the city and the state. Rio will again be a major business hub, attracting investors, and this is hugely relevant. We expect this to be a starting point for the rebirth of the financial market in Rio,” said ATG CEO Claudio Pracownik, according to Agência Brasil. The city used to have a stock exchange that was closed over 20 years ago.
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Translated by Guilherme Miranda
