Update 04.09.08: The Colombian Exchange Launches New Derivatives Market Based On NASDAQ OMX Technology
The NASDAQ OMX Group, Inc. (Nasdaq:NDAQ) and the Colombian Exchange — Bolsa de Valores de Colombia (BVC) — achieved a significant milestone this week with the launch of BVC’s new market for derivatives, based on a trading engine provided by NASDAQ OMX. The new trading platform, which later this year will also encompass cash equities, is part of BVC’s ongoing initiative to grow its position in the South American exchange market.
“This successful launch is a critical step in enhancing our offer to both South American and international investor communities,” said Juan Pablo Cordoba, President BVC. “Implementation of NASDAQ OMX’s trading engine allows both retail and institutional investors to execute orders more securely and efficiently. In addition, the system provides scalability for future volume increases, as well as the flexibility to quickly introduce new products.”
The system that NASDAQ OMX delivers to BVC offers a high-speed, low-latency platform, and is designed to support fast introduction of new trading products and services. It also enables high capacity limits to meet the needs of algorithmic and high-velocity traders.
“This launch truly symbolizes BVC’s commitment to become a leading exchange in South America,” said Markus Gerdien, Executive Vice President NASDAQ OMX Market Technology. “BVC has invested in a world-class, state-of-the-art solution that will align them with international standards and put them in a prime position to grow liquidity and attract international capital.”
Bloomberg | 01.09.2008 Derivatives Trading article, Lifting of Depository Restriction
Colombia started trading its first derivatives instrument today as Latin American exchanges seek to lure more investors and boost trading.
Juan Pablo Cordoba, chairman of Colombia’s exchange known as BVC, and chief securities regulator Cesar Prado started the first session of bond futures trading in a ceremony in Bogota. BVC plans to allow stock and currency futures and options by yearend.
“This is a historic day for Colombian capital markets and for the wider economy,” Prado said in a speech at the ceremony. “The introduction of this market is going to contribute to improved risk distribution in the economy.”
Latin American exchanges are developing derivatives trading to allow investors to hedge risks or speculate on the underlying asset. Brazil’s derivatives exchange merged with the nation’s stock exchange this year. Chile is drawing up derivatives guidelines as part of a planned capital markets developments unveiled by Finance Minister Andres Velasco last month.
In May, BVC signed an agreement with XM Co. de Expertos en Mercados SA ESP, operator of Colombia’s electricity grid, to create Latin America’s first electricity derivatives market.
Colombia’s first derivatives instrument is a five-year futures contract derived from the country’s benchmark peso bond, known as TES.
Filed under: News, BVC Bolsa de Valores de Colombia, Clearing and Settlement, Colombia, Derivatives, Exchanges, FIX, Latin America, OMX, Order Routing, Retail Investors, Trade Connectivity
