FiNETIK – Asia and Latin America – Market News Network

Asia and Latin America News Network focusing on Financial Markets, Energy, Environment, Commodity and Risk, Trading and Data Management

September 3, 2010 • 4:26 pm 0

Asia E-Trading: Electronic Trading in China – Webinar September 7th

Asia E Trading presents the free  1 hour web-seminar : Electronic Trading in China

  • Overview of the Electronic Trading industry
  • Buy-side Algorithmic Trading
  • CSI300 Index future
  • Latest news on QFII and QDII
  • High Frequency Trading and Colocation
  • Update: Shanghai and Shenzhen Exchange

Speakers are:

Lionel Sancenot - Sungard- MD NE Asia & Greater China

Bill Liu -Qing Ma Investments -Portfolio Manager

Zennon Kapron – KapronAsia- Principal

REGISTER HERE

Date: 07. September 2010

TIME: 5pm Hong Kong, 10am London, 5am New York

The seminar will be recorded and available on demand

Filed under: China, Exchanges, FIX Connectivity, Trading Technology , , , , , , , , , , , , , , , ,

August 19, 2010 • 9:06 pm 0

RTS Offers Access to New Trading Platform for Pan-Asian Market on Singapore Mercantile Exchange

SMX Launch Further Builds on RTS Low Latency Solutions in Asia

RTS Realtime Systems Group, a leading global trading solutions provider, announced today that the firm will provide connectivity and low latency access to the Singapore Mercantile Exchange (SMX) from its first day of trading, which will be 31 August 2010.

The new pan-Asian commodity and currency derivatives exchange will launch using a state-of-the-art global futures and options trading platform for products which include precious metals, base metals, agricultural commodities, energy, currencies and commodity indices.

Leveraging on its parent conglomerate Financial Technologies (India) Limited, who has designed and provided the end-to-end technology solution, the Exchange provides an application programming interface (API) to enable global independent software vendor (ISV) integration and thus facilitate a cross section of trading members, institutions and other financial market participants to trade on the Exchange. Members also have the option to write their own APIs for connectivity. Financial Technologies (India) Limited’s highly robust and scalable trading technology gives SMX the agility and adaptability which ensures its edge in the financial markets.

RTS recently announced the global launch of a first-of-its-kind trading solution combining the advantages of “point-and-click” and algorithmic trading. Called RTD Tango Trader, it is designed to leverage firms’ existing infrastructure and enable more brokers, traders and clients to benefit from customized algorithms. The firm’s high performance solutions are used by leading financial firms to trade across asset classes on 120+ exchanges and execution venues globally, including a wide range of major Asian exchanges.

Alex Lamb, RTS Executive Board Member, said: “We are pleased to offer access from day one to this truly pan-Asian commodity and currency derivatives exchange for our clients in the region and across the world, particularly given the tremendous interest they’ve already expressed in the opportunity. The breadth of products will create new avenues for arbitrage and effective risk management.”

Thomas J. McMahon, Chief Executive Officer of SMX, said: “As we look forward to attracting new product listings from around the world and Asia, we are very pleased to welcome trading firms globally who use the advanced technology and infrastructure of RTS which brings in a number of important algorithmic traders to SMX. Our global trading venue is well positioned to serve as a gateway for commodities in Asia, synchronizing derivatives and physical trading in commodities within the Asian time zone.”

Source: RTS, 19.08.2010

Filed under: Exchanges, News, Singapore, Trading Technology , , , , , , , , , , ,

August 10, 2010 • 12:47 am 1

Mexico’s GBM Champions FIX Flyer’s Software for Electronic Trading

FIX Flyer, a leader in solutions for electronic trading, announced today that Grupo Bursatil Mexicano, one of the leading brokers in Mexico, uses both the Flyer Engine and Daytona Monitoring for their FIX messaging.

GBM uses Flyer’s tools for their client order flow as well as routing to exchanges in Mexico, Brazil and North America. GBM uses Daytona and the Flyer Engine to monitor and support FIX sessions with all of their counterparties in real-time. In addition, the combined solution lets GBM’s traders respond to their clients needs with dynamic trade busting, routing latency metrics, and real-time order chain management. By providing even higher levels of support for their customers, GBM is in a strong position to attract clients beyond Mexico.

FIX Flyer is also working closely with GBM to integrate with the Bolsa Mexicana de Valores’ new FIX offering. The Bolsa, the largest equities exchange in Mexico, will soon support orders from FIX connections and GBM’s relationship with Flyer has allowed them to respond quickly to this exiting new opportunity in the Mexican market.

“We have embraced the vision of electronic trading in order to provide the very best execution for our increasingly sophisticated clients,” said Enrique Rojas, Director of International Business Development at GBM in Mexico City. “We adopted FIX Flyer’s solution two years ago, and because of their solid reliability and superb performance we have been able to aggressively expand our algorithmic and low-latency trading programs for the direct benefit of our institutional clients around the globe.”

GBM chose FIX Flyer for the core FIX components since the solution is easy to support, scalable, and high-performance. In addition, GBM needed to ensure that the solution would give all of their client’s comfort that they can handle the potential of a dynamic and quickly emerging marketplace. Because of Flyer’s unmatched proficiency and experience as an overall FIX solution, GBM realized early in their evaluation process that Flyer extended their support and tools beyond the other conventional solutions. FIX Flyer works in some of the most demanding trading environments in the world, and that experience makes the product valuable to customers like GBM.

Source: A-TEAM 10.08.2010

Filed under: BMV - Mexico, FIX Connectivity, Latin America, Mexico, Trading Technology , , , , , , , , , , , , ,

July 22, 2010 • 1:30 am 0

Rapid Addition Wins Bolsa de Valores de Colombia BVC

Rapid Addition, the leading global provider of low-latency trading technology solutions to financial institutions, today announced its engagement with the Bolsa de Valores de Colombia (BVC) to implement GRHub, Rapid Addition’s flagship FIX Protocol gateway and order routing hub, and u-Trader, Rapid Addition’s web-based, FIX-enabled dealing system.

u-Trader is Rapid Addition’s lightweight buy-side trading application, which connects traders to multiple trading counterparties, either brokers or execution venues. Using u-Trader gives institutions the ability to automate their flow of equity orders, equity options, program, list, and portfolio trades, and also supports Direct Market Access (DMA) and algorithmic trading.

Rapid Addition was chosen by the BVC on the basis that they could exceed the low latency performance requirements of BVC’s exchange members.

Toby Corballis, CEO of Rapid Addition, welcomed the announcement, saying:

“We are delighted to be working with the BVC by providing them with the lowest latency hub solution available on the market today. This will enable the exchange to give its users the best possible performance and help them maintain their competitive edge in the market.”

Jitendra Puri, Vice President of Technology of the Bolsa de Valores de Colombia, said:

“By choosing a firm of Rapid Addition’s industry-leading reputation, we wish to send a clear message to the community that we are totally committed to providing a fully modernized, state-of-the-art solution for the Colombian securities market. Rapid Addition’s expertise in global FIX connectivity and low-latency FIX trading technology made them the best choice for the BVC as we look to expand our offerings internationally.”

Source: A-TEAM GROUP, 23.07.2010

Filed under: Colombia, Exchanges, Latin America, News, Trading Technology , , , , , , , , ,

July 5, 2010 • 10:24 pm 0

Finamex Introduces Mexican Exchange Trading Proximity for Direct Market Access (DMA) and Colocation

Finamex, the leading financial services broker dealer for the Mexican Exchange marketplace, historically focused in providing premium professional trading products for high-performance and low-latency market access, announced today its new proximity DMA offering. Currently, Finamex enables trading systems allow firms to access Mexican Exchange venues at the lowest latencies in the market place.

Finamex being an authorized broker dealer it also offers all risk requirements, validations and processes fully in-line with existent official regulations and certified on a yearly basis. Local as well as International trading firms have utilized Finamex connectivity to Bolsa Mexicana de Valores and the Mexican Derivatives Exchange Finamex FIX gateways. Today’s announcement of the technology roll-out within the Exchanges’ datacenter incorporates a new lowlatency approach by Finamex for DMA.

FIX gateways are now within LAN proximity to the Mexican Exchange trading engines allowing for high frequency trading strategies to perform optimally on this new Finamex DMA Gateway. Straight-Through-Processing systems have also been deployed in this environment with integration of Finamex Order Management, Risk Controls, Execution Routing, Algorithmic Trading, as well as networking connectivity for clients and partners.

The new Finamex DMA Gateway includes full support of:

* Ultra-thin and transparent FIX engines configurable for special requirements
* Pre-trade order validation optimized for high throughput execution
* Low-latency verifications modules for trading limits and other important checks
* Optimized order routing directly onto the Exchange matching engine LAN
*Neutral access and protected order flow as Finamex do not operate a proprietary trading desk
* Zero-cost execution algorithms including VWAP, TWAP, POV, and others as well as several synthetic order types.

Finamex’s new infrastructure services support general co-location needs for customers and other market participants to implement their own servers and other network components further minimizing overall latency. For more than 20 years Finamex has been a leader in the Mexican financial services industry consistently ranking as one of the best independent broker dealers in the country. Finamex’s commitment to technology excellence is one of the reasons why it is in the top ten most liquid in the equities market, top-five in the fixed-income business, and the prime choice for HFT players and ALGO shops requiring execution services.

Source: A-TEAM 05.07.2010

Filed under: BMV - Mexico, Exchanges, FIX Connectivity, Latin America, Mexico, Trading Technology , , , , , , , , , , , , ,

May 19, 2010 • 2:47 am 0

MetaBit Trading Technology and Services opens Hong Kong Office

Tokyo/Hong Kong, 18 May 2010 – Specialist DMA and exchange connectivity solution provider MetaBit opens its Hong Kong office in May 2010 as part of its business expansion in Asia.
 
The new Hong Kong office represents a further strategic milestone for MetaBit to accelerate the expansion of its rapidly growing Asian client base and support its strategic objective to service Asia’s financial markets with localized and low latency trading solutions.  The Hong Kong office will promote and support institutional DMA, algo and manual trading across fourteen Asian markets.
 
MetaBit have also announced the appointment of Claus Kwon as managing director for the Asia Pacific ex-Japan business.
 
“I am very pleased to have Claus Kwon taking responsibility to further expand MetaBit’s business outside Japan” says Daniel Burgin, CEO at MetaBit.  “With Mr Kwon’s appointment, MetaBit continues to proactively build on its success and reputation earned through the quality of its technology and MetaBit’s continuous efforts in helping its clients achieve greater trading efficiency. Headquartered in Tokyo, our company is firmly rooted in Asia.  The addition of the Hong Kong office strengthens MetaBit’s ability to deliver the best solution with service catered for local needs.”
 
“I am excited to be joining MetaBit as their business expands in the region and as electronic trading continues to develop at an incredible rate in Asia,” says Mr Kwon. “MetaBit has a history of delivering innovative electronic trading solutions to both global and local clients in the Asia markets. Whilst MetaBit’s solutions are global by underlying technology, their unique infrastructure supports businesses that are serious about their Asia operations and want to stay competitive in this market.”
 
Today, MetaBit covers all of Asia’s DMA and Algo markets through its flagship trading platform XiliX, its vendor neutral FIX hub MLH (Market Liquidity Hub), and Alpha, its ultra-low latency exchange connectivity solution.
With the opening of a Hong Kong office, MetaBit – a pro-active promoter of the FIX Protocol – has formally joined the FPL.
 
About MetaBit –
 
MetaBit is a specialist low latency DMA trading solution provider in Asia reducing transaction processing times and  increasing trading opportunities by providing FIX enabled DMA and algorithmic trading access to market liquidity across fourteen Asia’s markets, including Japan.
 
MetaBit’s flagship products are the XiliX™ intuitive buy side DMA trading platform and MLH, a vendor neutral Market Liquidity Hub. Other products are Alpha, ultra-low latency exchange connectivity to Japan’s exchanges and EXSiM – Japan exchange simulators.  All of MetaBit’s products are powered by the CameronFIX Engine.

Source: Metabit, 18.05.2010

Koji Ito
+81-3-3664-4160
sales@meta-bit.com

Filed under: Asia, Australia, FIX Connectivity, Hong Kong, India, Japan, Korea, News, Singapore, Trading Technology , , , , , , , , , , , , , , ,

May 18, 2010 • 7:52 am 1

Fidessa Expands Access To Latin America With Connection To Santiago Stock Exchange of Chile

Fidessa group plc (LSE:FDSA), provider of award-winning multi-asset trading, portfolio analysis, compliance, market data and global connectivity solutions for the buy-side and sell-side, today announced its certification to provide access to the Santiago Stock Exchange (Bolsa de Comercio de Santiago).

The partnership is in preparation for the Santiago Stock Exchange’s forthcoming major trading engine upgrade that is being introduced to accommodate increasing volumes resulting from new DMA and algorithmic flows. Fidessa’s interface with the Santiago Stock Exchange will provide member firms access to electronically route orders to the exchange via the Fidessa trading platform or by directly leveraging Fidessa’s FIX connectivity. The connection will also provide Fidessa’s global clients with direct DMA access to the Santiago Stock Exchange.

José Antonio Martínez, CEO at the Santiago Stock Exchange, commented: “This partnership marks an important step in increasing direct market access for global firms looking for reliable connectivity into the region. The Santiago Stock Exchange is an undisputed cornerstone in Latin America’s capital markets and a benchmark for excellence among domestic and foreign investors. A technology partner such as Fidessa offers the quality and reliability we require to service both our local and global constituents.”

Alice Botis, Head of Business Development Latin America at Fidessa, adds: “We have worked hard to provide superior technology and customer service to clients in Latin America. By certifying with the Santiago Stock Exchange, we can provide valuable services such as direct market access, improved trade order entry and better algorithmic trading tools to global brokers and buy-sides who wish to trade more efficiently on the exchange.” The Fidessa connectivity network links over 2,400 buy-side institutions to more than 530 brokers and 130 markets around the world, providing a “one-stop-shop” for best execution services. Fidessa recently announced that it signed a deal to provide Celfin Capital in Chile with it’s hosted trading technology, and has also added over 16 valued Latin American brokers to its connectivity network including: Agora CTVM S.A, BES Securities, Casa de Bolsa Finamex, Celfin Capita, Credit Suisse Hedging-Griffo, Fator Securities, Grupo Bursatil Mexicano, ICAP Brazil CTVM, Interacciones Casa de Bolsa, Itau Securities, IXE Casa de Bolsa, Santander Investment Securities, Planner Corretora De Valores, Terra Futuros Corretora de Mercadorias S/A and XP Investimentos.

SOURCE: Finextra, 17.05.2009

Filed under: Brazil, Chile, Exchanges, FIX Connectivity, Latin America, Mexico, News, Trading Technology , , , , , , , , , , ,

April 29, 2010 • 7:55 am 2

Latin American Electronic Trading: Caliente!

Latin America, dominated by Brazil and Mexico, is growing faster than fortune seekers from the global exchanges, banks and vendors can fly south.  The major stock markets were up 400% over the last decade, and the Brazilian derivatives market, BM&F, is now the sixth largest derivatives market in the world with growth of 67% in Q1 2010. In March 2010 the number of single stock option contracts traded on the Brazilian derivatives exchange BM&F passed the number of contracts traded on CBOE, ISE or NasdaqOMX.

Brazil and the rest of Latin America have not received the same adulation as other emerging market rock stars.  This changed in 2009, as Brazil emerged early and unscathed from the worldwide financial crisis.

Latin America’s time has now come. In the last two years, major exchanges have gone public, trading volumes have soared, brokers have rushed to deploy electronic trading services, early mover technology vendors have racked up impressive sales, and high frequency trading has begun.

Proprietary trading shops of local banks co-located at the exchanges battle it out with traders who have just flown in from Chicago.  Brokerage firms rush to deploy new algorithms to their buy-side clients. Exchanges play “hard to get” with global exchanges eager to bolster their emerging market credentials. Local technology vendors with relationships try to keep out foreign vendors with advanced technology. Brazilian bankers migrate back from New York to Sao Paulo because the bonuses are better. And everyone’s trying to arbitrage local stocks against American Depository Receipts.

This report is your map.
Latin America. Caliente!

This 41-page PowerPoint report focuses on the two largest markets Brazil and Mexico, but also covers Chile, Argentina, Peru and Columbia. The report covers both equity and listed derivative markets.

The report is divided into these sections:
- Overview of the economies in the region, and stock market performance.
- Exchange trading volumes – Data on size and growth rates of Latin American exchanges with a focus on BOVESPA (Brazil equities), BM&F (Brazil derivatives) and Mexico Exchange.
- Exchanges – Review of the current state and future plans of the major exchanges in each market, including BM&FBovespa. Mexico Exchange, Santiago Exchange (Chile), and Argentinian exchanges. Technologies used internally, trading systems and networks offered to clients, partnerships such as BM&F and CME, regional alternative marketplaces.
- Brokerage – Local and international equity and derivative brokers, recent acquisitions, technologies used in house and offered to clients.
-Three case studies of local brokerage firms showing what in-house and vendor trading technologies they use and offer to clients.
- Buy Side – Data on the types of asset management firms and what assets they own. Pension funds/hedge funds/retail investors/proprietary trading groups/foreign investors. Trading software and network vendors used by the buy side, including both local and foreign vendors.
- Technology vendors – Market shares by OMS technology vendor, including local and global vendors. Usage of OMS, EMS, equity and derivatives systems, market data and network connectivity. Including local vendors CMA, Extol, Cedro, Estado, Apligraf and international vendors GL Trade, Bloomberg, Reuters, Fidessa, Marco Polo Networks, Charles River RTS, Pat Systems, Trading Technologies, CQG, TradingScreen, NYSE Technologies/NYFIX, BT Radianz, Progress Software Apama, Streambase.  In-depth information about local OMS, market data and network vendors CMA and Extol.
- High frequency trading – Data on the growth of DMA/algorithmic trading/high frequency trading in Brazil during the last two years across both equity and derivatives trading. Review of what high frequency or algorithmic services exchanges and brokers provide. Case study of a high frequency trading firm in Brazil, with detail on the technologies used
- Merger & Acquisition targets – local technology vendors with potential to be acquired.

About the Author
Martin Koopman has worked in the securities trading industry as President Cameron Systems, President North America Orc Software, CEO FMO Pty Ltd and as a consultant with The Boston Consulting Group. He lives in New York City and can be contacted at martink@aditat.com

Source: TABB Group, 28.04.2010

http://www.tabbgroup.com/PublicationDetail.aspx?PublicationID=608&MenuID=44&ParentMenuID=2&PageID=43

Filed under: Argentina, Brazil, Central America, Chile, Colombia, Exchanges, FIX Connectivity, Latin America, Mexico, News, Peru, Trading Technology , , , , , , , , , , , , , , , , ,

April 13, 2010 • 6:47 am 1

Charles River Expands Brazil and Latin America Presence

Charles River Development has expanded its regional presence in Sao Paulo, Brazil with local, multi-lingual employees providing implementation, consulting and support services for regional clients and prospects.

In a company statement, Manuel Astiasaran, Director of Operations in Latin America for Charles River, said, “Our expanding client base reflects Latin America’s changing regulatory climate. Heavy regulation limiting investment to domestic securities has been relaxed, such as the 2009 regulation from Brazil’s Commisso de Valores Mobilirios, making way for international investments. This has increased buy-side demand for front- to middle-office systems that automate domestic and international investment operations.”

The Charles River Investment Managing System (IMS) is available in Portuguese and Spanish and supports region-specific security types and workflows, including Mexican corporate and government bonds, as well as Brazil’s CDI-linked debentures and complex inflation-linked government notes.

The Charles River IMS includes pre-built compliance libraries with rules across 35 regulatory bodies in 20 countries, including rule libraries for Mexico, Brazil and Chile.

Source: Advanced Trading, 06.04.2010

Filed under: BM&FBOVESPA, BMV - Mexico, Brazil, Chile, Latin America, Mexico, News, Risk Management, Trading Technology , , , , , , , , , , , ,

April 12, 2010 • 6:30 am 0

Trading Technologies and BM&FBOVESPA Agree to Expand TT’s Presence in Brazil

Trading Technologies International, Inc. (TT), the leading provider of order-entry software and solutions for professional derivatives traders, and BM&FBOVESPA, Latin America’s largest exchange, announced on 12 April 2010 that they have entered into a partnership to provide direct access to BM&FBOVESPA’s new multi-asset class platform via TT’s X_TRADER® platform.

TT’s direct connection to BM&FBOVESPA will provide traders from anywhere in the world with access to the exchange through TT’s X_TRADER® platform. The new connection will provide TT’s customers with access to the main derivatives contracts listed on the exchange, including:

  • Interest Rates – One-Day Interbank Deposit, Long Term Interbank Deposit and ID x US Dollar Swap with Reset contracts
  • Equity Index Futures – Ibovespa, Mini-Ibovespa, Brazil Index-50 and General Market Price Index
  • Currency – USD Futures, Mini-USD and Euro Futures
  • Agricultural – Arabica Coffee, Real-Denominated Corn, Soybeans, Crystal Sugar,  Live Cattle and USD Denominated Ethanol
  • Sovereign Debt Instrument (Bonds) – A-Bond Futures, Three-, Five- and Seven-Year Brazilian Sovereign Credit Default Swaps and Ten-Year US Treasury Notes
  • Metals – Gold Futures and Spot contracts

“BM&FBOVESPA is very pleased with this partnership that will contribute for the growth of our market. This partnership is aligned with our goal to offer advanced technological solutions for our customers”, said Cicero Augusto Vieira, BM&FBOVESPA Chief Operating Officer.

“We believe this agreement with BM&FBOVESPA will provide a superior ultra-low-latency connection to the exchange. We expect the co-location and proximity-based computing solutions planned for our new TTNET hub in Sao Paulo will provide our global customer base with a critical edge,” said Harris Brumfield, CEO of TT.

Source: TTNET, 12.04.2010

Filed under: BM&FBOVESPA, Brazil, Exchanges, Latin America, News, Trading Technology , , , , , , ,

March 26, 2010 • 7:23 am 2

Brazil: BM&FBOVESPA Exchange news and events March 2010

SunGard Global Trading authorized as DMA provider

BM&FBOVESPA has authorized SunGard Global Trading to act as a provider of direct market access (DMA) for the BM&F segment (derivatives markets). SunGard offer brokerage houses and its clients an order routing system that allows direct trading of financial and agricultural derivatives traded at the Exchange. BVMF is also working with SunGard to develop a back-office solution for North American clients that trade agricultural and financial derivatives in Brazil.

Voluntary carbon credit market auction

BM&FBOVESPA will hold on 08 April 2010, a voluntary carbon credit market auction. A total amount of 180,000 voluntary carbon units from projects managed by the Social Carbon Company will be auctioned. The auction will be held in three sessions, with a lot traded per session. The initial bidding prices will be indicated by lots that vary in accordance to the vintages and are priced at BRL 10.00 to BRL 12.00 per unit. The first transaction will occur at 1:00 p.m. (Brazil Time) and will be carried out by BM&FBOVESPA’s Carbon Credit Trading System.

White paper on post-trade infra-structure

The Exchange divulged, on March 11th, a white paper entitled “BM&FBOVESPA’s Post-Trade Infra-Structure – Integration Challenges and Opportunities”. The document aims to stimulate debate among market participants, regulatory agents, and others interested in the integration of post-trade activities and systems (netting, settlement, central counterpart, and central depository). BVMF expects the participants to contribute to the consolidation of the path to be adopted in relation to integration opportunities. The white paper can be found at www.bmfbovespa.com.br, in Notices.

BM&FBOVESPA establishes new historic record in contracts traded and in ID futures

BM&FBOVESPA established on 18 March 2010 a new historic record in the total number of contracts traded in the derivatives segment, with 10,157,779 contracts. The previous record of 5,716,789 contracts was set on 17 March 2010. Trading of ID futures contracts also registered a historic record on 18 March 2010, reaching a mark of 6,093,795 contracts. The previous record of 4,544,750 contracts was also set on 17 March.

UN´s Principles for Responsible Investment

On March the 3rd, BM&FBOVESPA formalized its adherence to the Principles for Responsible Investment (PRI), a United Nations initiative developed by financial markets to promote responsible investment. The document was signed during the first international PRI meeting held in Brazil. BM&FBOVESPA intends to set an example for other investors to adhere to the principals and also stimulate listed companies to report their socio-environmental initiatives to the market.

BM&FBOVESPA announces earnings for fourth quarter of 2009

Net income of R$220.2 million increased 8.8% year-on-year, whereas adjusted net income of R$315.3 million. 4Q09 net revenues of R$424.8 million increased 19.5% from the same quarter one year ago (pro forma). In a comparison of the twelve months to December 2009, net revenues dropped 6.2% to R$1,502.5 million. 4Q09 operating expenses reached R$ 160.4 million, a 25.2% increase from 4Q081 (pro forma) and a 21.0% increase from 3Q09’s. In 2009, recurring expenses reached R$446.7 million, a 12.9% drop from 2008 (pro forma), as adjusted by expenses related to employee compensation in 1Q09 (R$ 18 million) and in line with the target of R$450.0 million for 2009. EBITDA totaled R$276.4 million for the fourth quarter, up 17.3% from 4Q08 (pro forma). Click here for full earnings release.

BM&FBOVESPA begins trading three new ETFs

As of 23 February 2010, BM&FBOVESPA began trading three new Exchange Traded Funds (ETFs): iShares Brazil Index IBrX-100 (BRAX11); iShares BM&FBOVESPA Consumption Index (CSMO11); and iShares BM&FBOVESPA Real Estate Index (MOBI11). The new ETFs are managed by BlackRock Brazil. The Exchange also offers four other ETFs, which track the Ibovespa, Small Cap, MidLarge Cap, and IBrX-50 indices. Click here for further information on BM&FBOVESPA’s ETFs.

Exchange’s new communication interface with Mega Bolsa

As of April 20, 2010, the Mega Direct, a new electronic communication interface, will become the only form of access for all automatic DMA connections to the Mega Bolsa, BVMF equities segment trading platform. The tool enables the insertion, modification, and cancelation of offers placed on the Mega Bolsa. The new interface performs up to tenfold faster than the current system.

Exchange’s meeting in São Paulo

BVMF hosted the Ibero-American Federation of Exchanges meeting in São Paulo on March 19. The objective of the event was to bring together member exchanges from Latin America, Portugal, and Spain to debate the latest market trends of the region. The themes discussed were the recent regional integration initiatives; regulation; and the development of the derivatives market in Latin America. The meeting also featured a presentation by BVMF on its current strategic partnerships with CME Group and Nasdaq OMX.

Carbon Efficient Index

BM&FBOVESPA will receive until March 31st comments and suggestions to improve the development of the calculation methodology of the new Carbon Efficient Index (ICO2). The creation of the new index was announced on December 15th, 2009, by the Exchange and the Brazilian Development Bank (BNDES), during the 15th United Nations Climate Change Conference (COP15), in Copenhagen.

Volumes and trades by Direct Market Access (DMA)

In February, derivatives market segment registered a total of 12,537,023 contracts traded via DMA*, with 1,485,032 trades carried out through the GTS trading platform. In January, the total was 9,917,768 contracts traded in 1,203,321 trades. In February, trading via DMA (including all DMA modalities) registered increases both in number of trades and contracts traded, establishing the following records: (1) a daily average of 696,501 contracts traded, compared to the previous record of 497,049 in October 2009; (2) the daily average of orders routed via the CME Globex – BM&FBOVESPA GTS reached 176,216 contracts, compared to the prior mark of 154,600 in October 2009.

Traditional DMA – 5,807,581 contracts traded, in 505,698 trades, in comparison to 4,590,025 contracts traded and 446,674 trades;

Via DMA Provider – 3,200,086 contracts traded, in 75,421 trades, in comparison to 2,723,958 contracts traded and 61,019 trades;

DMA via order routing with Globex (CME Group’s electronic trading platform) – 3,171,892 contracts traded, in 816,205 trades, in comparison to 2,284,904 contracts and 618,746 trades;

DMA via co-location – 357,464 contracts traded, in 87,708 trades, in comparison to 318,881 contracts traded, in 76,882 trades.

BM&FBOVESPA market performance – February 2010

BM&F Segment

Derivatives markets in the BM&F segment totaled 39,306,238 contracts and BRL 2.47 trillion in volume in February. That compares to 36,217,359 contracts and a volume of BRL 2.65 trillion in January. The daily average of contracts traded in the derivatives markets set a new record in February, with 2,183,679 contracts, in contrast to the previous record of 2,172,046 in March 2008.

Bovespa Segment

In February, equity markets (Bovespa segment) reached a total volume of BRL 118.06 billion, in 7,355,993 trades, with daily averages of BRL 6.55 billion and 408,666 trades, respectively. In January, total volume reached BRL 129.10 billion, 8,051,640 trades, with daily averages of BRL 6.79 billion and 423,771 trades, respectively.

Source: BM&FBOVESPA, 26.03.2010

Filed under: BM&FBOVESPA, Brazil, Chile, Colombia, Exchanges, Latin America, Mexico, News, Peru, Risk Management, Trading Technology , , , , , , , , , , , , , , , ,

March 9, 2010 • 7:43 am 0

CME Group, Bolsa Mexicana de Valores and MexDer Announce Order Routing, Equity Agreement

In connection with yesterday’s announcement made by CME Group concerning the order routing agreement it has entered into with the Mexican Stock Market (BMV) and the 1.9 percent acquisition of BMV’s capital, BM&FBOVESPA and CME Group announce that they will initiate discussions about said transaction and other commercial opportunities with BMV, in consonance with the terms of the global strategic partnership published in the material fact dated February 11, 2010.

Source: MondoVisione, 09.03.2010

CME Group, the world’s leading and most diverse derivatives marketplace, and the Bolsa Mexicana de Valores, S.A.B. de C.V. (BMV), the financial exchange operator in Mexico, today announced that they have entered into a strategic partnership that includes an order routing agreement for derivatives products. CME Group has purchased shares in the Mexican exchange valued at $17 million, or approximately 1.9 percent of outstanding BMV shares, as part of the equity portion of the agreement. Additionally, the Control Trust of BMV has granted CME Group the right to nominate a member to BMV Board of Directors and the two exchange operators have signed a memorandum of understanding covering activities aimed at enhancing the partnership between the two exchanges.

Mexico’s MexDer seeks high class global partners, 08.11.2009

BMV Bolsa Mexicana de Valore: Information on relationships and discussions with CME, 27.09.2009

Through the agreement, CME Group will become the exclusive exchange provider of derivatives order routing services to BMV outside Latin America, and BMV will be the exclusive exchange provider of derivatives order routing services to CME Group in Mexico. BMV’s derivative products are offered through its derivatives subsidiary, MexDer.

CME Group and BMV have also agreed to pursue potential joint initiatives including product development, marketing and customer education as well as clearing opportunities. Additionally, BMV, CME Group and its Global Preferred Strategic Partner BM&FBOVESPA will initiate discussions about the aforementioned transaction and other commercial opportunities.

“Latin America is a key market for CME Group,” said Terry Duffy, CME Group Executive Chairman. “We are pleased to announce this new partnership with BMV which furthers our global strategy to offer customers increased access to our products while, at the same time, allowing BMV to use the CME Globex trading network to increase distribution of their products in North America.”

“With Mexico’s standing as the 13th largest economy and one of our country’s most significant trading partners, we are pleased to work with BMV to facilitate global hedging and risk management activity in our respective markets,” said Craig Donohue, CME Group Chief Executive Officer. “In addition to providing CME Group customers with our own highly liquid products in interest rates, equities, foreign exchange, commodities, energy and metals, the order routing agreement announced today will soon broaden efficient access on or through our CME Globex electronic trading platform to financial markets in Brazil, Mexico, South Korea, Dubai and Malaysia.”

“With this operation BMV increases its presence in the international markets. Greater distribution capabilities are a key part of our strategy to attract more investors to Mexico,” said Luis Tellez BMV Executive Chairman and Chief Executive Officer. “Allowing international investors an easier access into MexDer will improve liquidity and develop the local market. At the same time this agreement will provide Mexican investors with more tools to manage their portfolios.”

The order routing arrangement, which is scheduled to begin in 2011, will give BMV customers access to CME Group’s benchmark derivatives contracts including interest rates, foreign currencies, equity indexes, energy, metals and agricultural commodities. It will also give CME Group customers access to BMV’s interest rate and equity index derivatives.

Source: MondoVisione, 08.03.2009

Filed under: BM&FBOVESPA, BMV - Mexico, Exchanges, Latin America, Mexico, News, Risk Management, Trading Technology , , , , , , , , , , , , , , ,

February 27, 2010 • 8:27 am 0

India: Co-location services at BSE premises

Bombay Stock Exchange permits DMA and Automated trading. Since Both DMA and Automated trading make use of strategies that exploit short-lived market opportunities and have a high dependence on speed of execution, the co-location facility will facilitate faster trade execution required for DMA and Automated trading. This Co- location Facility will be extended to members to host their servers near to BSE’s trading platform within BSE premises.

In this regard Trading Members may please note the following:

-   In view of limited availability, racks will be allotted on first come first basis based on the receipt of complete application along with the payment. However, if there is more demand than the availability, additional space will be made available.
-   The minimum period for which the racks are allotted will be one year and any renewal would require an advance notice of 30 days.
Format of the Application form for applying for usage of Co-location facility is enclosed Annexure-1
The racks will be allotted on 1 rack basis. No partial rack would be allotted.
Members may take private leased lines to the co located rack(s) for ongoing system administration of their servers. These lines can be availed from Airtel / MTNL / Reliance / Tata

-  Due to security reasons,  Physical access to co-location data centre will be restricted only to the initial set up and access for periodic or urgent maintenance if any would be only with prior permission from BSE and that such permission will be allowed only after Exchange trading hours.

-  The Exchange would not be responsible for insuring the member assets at the co-location premises.
-  The co location facility will be Tier3 grade with following specifications: -

  • Standard 19 Rack(s) with 3KVA power.
  • Uplink ports to BSE Campus LAN for BSE connectivity.

-    The Exchange will provide co-location facility on best efforts basis and it will not be responsible for any direct / indirect / consequential, harm / loss / damage of any kind for whatsoever reason including but not limited to power failure, air conditioning failure, system failure and loss of connectivity. Further, the Exchange shall not be liable for any stoppage in co-location facility owing to legal or regulatory requirement.

Format of the Application form for applying for usage of Co-location facility is enclosed in Annexure -1.

Further you can avail Co-location facilities offered by Third Party Providers. The charges and facilities offered through Third Party Providers will be intimated to the members in due course.

For further technical clarification and queries kindly contact Mr. Jitendra Choudhari on telephone number +91 22 22728301 and email on jitendra.choudhari@bseindia.com

Source: BSE, 26.02.2010

Filed under: Asia, Exchanges, India, News, Trading Technology , , , , , , ,

February 9, 2010 • 9:57 pm 2

Asean exchanges select Nyse Technologies to build trading network

A group of Asean stock exchanges have appointed Nyse Technologies to build a direct market access electronic trading link.

Last February Bursa Malaysia, the Philippine Stock Exchange, Singapore Exchange and the Stock Exchange of Thailand outlined plans to create a single access point to ease cross-border trading and attract more international fund flows into the region. Indonesia’s exchange was initially part of the group but is no longer involved.

The partners have now signed a letter of intent appointing Nyse Euronext’s IT unit to design, build and manage the technology required for the trading link.

Nyse Technologies says its system will be underpinned by a resilient networking infrastructure that will interconnect the Asean member exchange’s and, through them, their respective communities.

The system will include services that tap this network to provide integrated market data feeds from all the participating markets and a standardised entry point for trading. Expansion of the trading link’s markets will be helped by the risk management and controls put in place, says Nyse.

In addition, the system will integrate with the Nyse Euronext communication network infrastructure, SFTI. This will give STFI members streamlined and cost effective access to trading in the Asean Trading Link markets.

Duncan Niederauer, CEO, Nyse Euronext, says: “The Asean Trading Link will strengthen the competitiveness of the member exchanges and enable them to better serve their customers. National and regional interest will be well served by giving investors greater access to global capital to facilitate new development, growth and wealth creation.”

Francisco Edralin Lim, CEO, Philippine Stock Exchange, adds: “Nyse Technologies brings to the table vast experience in the Exchange solutions business and we are confident that they will deliver cutting edge solutions that meet all our requirements. We are also excited about the possibilities of leveraging their extensive order routing networks to bring order flow into the Asean markets.”

Source, Finextra, 08.02.2010

Filed under: Asia, Exchanges, Malaysia, News, Singapore, Trading Technology , , , , , , , , , , , , ,

February 3, 2010 • 11:30 am 2

Brazil: BM&FBOVESPA Exchange news and events February 2010

BM&FBOVESPA launches foreign exchange non-deliverable forward contract

BM&FBOVESPA has authorized, as of January 18, the registration of dollar, euro, yen, and cross-rate non-deliverable forward contracts in its OTC market.

Initially, only foreign exchange transactions established by the Brazilian Central Bank can be registered. As of March 1, BM&FBOVESPA will also authorize the registration of transactions with exchange rates calculated by the following information sources: U.S. Dollar/Euro parity exchange rate calculated and published by the European Central Bank; U.S Dollar/Euro exchange rate fixed by WMR/Reuters; Japanese Yen/U.S. Dollar parity exchange rate calculated and published by the Central Bank of Japan; and Japanese Yen/U.S. Dollar exchange rate fixed by WMR/Reuters.

Click here for further details regarding the contract.

BM&FBOVESPA appoints executive for its London operations

The Exchange announces the appointment of Cathryn Lyall as Director of BM&FBOVESPA (UK) Ltd, a wholly-owned subsidiary of BM&FBOVESPA. Ms. Lyall will be responsible for the set up and expansion of the new BM&FBOVESPA European office located in London, including all product and sales related activities in EMEA.

Ms. Lyall will also be responsible for establishing regulatory relationships, education and training programs, speaking opportunities, and developing marketing, and business development related activities targeted at potential customers in the region. She will report to Joao Lauro Amaral, head of International Business for BM&FBOVESPA.

Exchange hosts event to seal partnership between Brazil and the International Accounting Standards Board (IASB) on convergence to IFRS

BM&FBOVESPA hosted, on 28 January 2010, the signing of a Memorandum of Understanding between the International Accounting Standards Board (IASB), the Brazilian Federal Council of Accounting (CFC) and, the Brazilian Accounting Pronouncements Committee (CPC).

The partnership is an important step towards the insertion of Brazil in the international forum on the establishment and adoption of a set of accounting standards known as the IFRS (International Financial Reporting Standards).

Since only a handful of countries have signed memorandums with the IASB, such partnership demonstrates Brazil’s commitment towards global regulatory issues. The agreement’s objective is to expand the convergence to IFRS norms in Brazil and to also guarantee a greater participation of Brazilian companies in regulatory discussions.

Exchange registers record fourth quarter trading

The average daily financial volume traded at the Brazilian Securities, Commodities and Futures Exchange equity markets reached a record BRL 6.840 billion during the fourth quarter of 2009. The amount surpasses in 3.34% the previous record, of BRL 6.618 billion, set during the fourth quarter of 2007. It is also 31.19% greater than the average daily volume traded in the third quarter of 2009, of BRL 5.214 billion.

Due to this historic record, the average daily volume registered during the second semester of 2009 reached BRL 6.001 billion; 32% superior to the average daily volume of BRL 4.560 billion, registered in the first six months of last year. During the fourth quarter, foreign investor participation in the traded volume was 31.7%, followed by individual investors (29.1%), institutional investors (27.1%), financial institutions (9.8%), and others (0.06%).

BM&FBOVESPA is the third most important market in terms of IPO operations in 2009

The Brazilian Exchange was the backstage for US$ 12.5 billion in capital raised through IPOs operations in 2009, ranking it in 3rd place as the most important IPO market in the world, only behind the Hong Kong and Shanghai Exchanges.

The total capital raised by shares issues accounted for US$ 41.7 billion in 2009, placing BM&FBOVESPA among the top 10 global markets, according to the World Federation of Exchanges.

Exchange ranks as the second largest equity options market and the sixth largest derivatives market in the world

According to the Futures Industry Association, BM&FBOVESPA has the second largest equity options market in the world. It registered a total of 369 million contracts traded from January to September 2009. The ranking is calculated based on the number of single stock options contracts and/or cleared.

Also, according to the same institution, BM&FBOVESPA was the 6th largest exchange in the world in terms of number of futures and options contracts traded from January to September 2009. That period registered a total trading volume of 649,203,768 contracts, which represents an increase of 12.6% over the same period in 2008.

Exchange sets DMA trading records

On 28 January 2010, the Exchange set a new DMA trading record (derivatives segment), reaching 836,153 contracts traded. The previous record was 773,396 contracts traded (on 21/01/2010). DMA trading via order routing with CME Group also set a record, on the same date, reaching 52,053 trades. The previous record of 51,422 was set on 21/01/2010.

In December, Direct Market Access (DMA) trading of the derivatives market segment registered a total of 8,238,292 contracts traded via DMA*, with 998,834 trades carried out through the GTS trading platform. In November, the total was 8,350,565 contracts traded in 1,103,437 trades. The volumes registered by access modality in December in comparison to the previous month are as follows:

Traditional DMA – 3,546,606 contracts traded, in 385,040 trades, in comparison to 3,838,053 contracts traded and 444,987 trades;

DMA via order routing with CME Globex (CME Group’s electronic trading platform) – 2,144,247 contracts traded, in 506,991 trades, in comparison to 2,321,877 contracts and 557,088 trades.

Via DMA Provider – 2,277,446 contracts traded, in 57,677 trades, in comparison to 1,900,815 contracts traded and 43,486 trades;

DMA via co – location – 269,993 contracts traded, in 49,126 trades, in comparison to 289,820 contracts traded, in 57,876 trades.

BM&FBOVESPA 2009 market performance

BM&F segments
Derivatives markets in the BM&F segment (including financial and agricultural derivatives) totaled 373.41 million contracts and a financial volume of BRL 26.78 trillion in 2009, compared to 391.62 million contracts and BRL 28.01 trillion in financial volume in 2008. The daily average of contracts, in 2009, was 1,517,941, as opposed to 1,572,783 in 2008. Mini contracts traded reached 12.95 million in 2009, in contrast 10.08 million in 2008.

Bovespa Segments
The equity markets (Bovespa segment) reached a total volume of BRL 1.3 trillion in 2009, compared to BRL 1.37 trillion in 2008. The average daily financial volume was BRL 5.28 billion, in contrast to BRL 5.52 billion in the previous year. During 2009, 81.75 million trades were carried out, as opposed to 61.02 million in 2008. In 2009, the daily average of trades reached, 332,349, surpassing the average of 245,071 trades in 2008.

Exchange Holidays for 2010

For the list of Exchange Holidays for 2010, click here. There will be no trading activities in either of the equities market (Mega Bolsa), or the corporate fixed-income securities markets (Bovespa Fix and Soma Fix), or the derivatives market (GTS), and BM&FBOVESPA will be closed for business on these holidays.

Source: BM&FBOVESPA, 02.02.2010

Filed under: BM&FBOVESPA, Brazil, Energy & Environment, Exchanges, Latin America, News, Risk Management, Trading Technology , , , , , , , , , , , , , , , , , , ,