But arbitration – which has yet to be deeply tested for resolving disputes on the Novo Mercado – does not seem to be the linchpin of Brazil’s recent success. After all, its institutional innovations apply only to the new Novo Mercado-listed companies, and not to the bulk of the Brazilian economy’s big firms, which are listed on the stock exchange’s main segment, and thus remain stuck with the old rules, old institutions, and an ineffective court system.