Investing in foreign companies, such as Amazon, Apple and Google, will become easier as of September 1, 2020. The Securities and Exchange Commission (CVM) announced on Tuesday (11) a change in the rules of application in BDRs, assets that until then were only available to so-called qualified investors, those with more than R $ 1 million.
Brazilian Depositary Receipts (BDRs) are not the shares themselves, but certificates of deposits issued in Brazil that represent the shares of publicly-held companies headquartered abroad. That is, when you buy AAPL34 on the Brazilian stock exchange B3, for example, you are investing in an asset equivalent to Apple shares (AAPL) in the American Nasdaq.
Equivalent shares do exist, being deposited and blocked with a custodian to ensure they are yours, but this detail is important for the more purist, who prefer to invest specifically in the shares. If this is the case, it will still be necessary to open an account with a brokerage abroad and carry out the procedures for an international investment.
A major breakthrough in capital market regulation, which B3 is working to operationalize. Soon we will have news on this subject. To understand more about BDRs, visit: https://t.co/kmDcf5Waef pic.twitter.com/JAh4gAmbKt
– B3 (@ B3_Oficial) August 11, 2020
Under the new CVM rules, BDRs may be traded even by investors who are not considered qualified, “depending on the market in which the BDR Level I backed securities are listed”. The updated standard also allows national companies publicly traded in other countries, such as XP and PagSeguro, to issue BDRs to Brazilian investors.
In the technology sector, BDRs are traded on B3 by codes such as GOGL34 (Alphabet), AMZO34 (Amazon), AAPL34 (Apple), ITLC34 (Intel), MSFT34 (Microsoft), NFLX34 (Netflix), NVDC34 (Nvidia) and TSLA34 (Tesla). The complete list of assets can be consulted this page.