Deutsche Börse hits Brazil with algo news service
Deutsche Börse has introduced its AlphaFlash algorithmic
news feed to Brazil, marking the exchange group's first foray into Latin America.
The new feed, which is hosted in a data centre in Sao Paulo,
is designed to provide machine-readable news that can help algorithms
make trading decisions based on macroeconomic data. Users can choose which data
they want to receive, including economic indicators for the US, Canada, Europe or Asia-Pacific, or US and global treasury auctions. The feed automatically transmits information from the
source directly to the trading algorithms used by clients. AlphaFlash draws on global macroeconomic
and treasury auctions data such as payroll information from the US, Europe and
The exchange group already provides AlphaFlash from its data centres in Chicago, New Jersey,
Washington D.C., Frankfurt, London, Sydney, Tokyo and Singapore.
“One of the
key criteria that helped us decide to launch this algo news service in Brazil
was that Brazil has an established and growing algorithmic and high-frequency
trading community – hedge funds, local banks, algo trading firms and others are
using these trading tools, and that is important for us," Georg Gross, head of front office data and analytics at Deutsche Börse, told theTRADEnews.com.
A further factor behind the choice of Brazil as a market for
machine-readable news was the relative interconnectedness of the country’s
economy to its largest overseas counterparts, which Gross said helped
ensure the relevance of the data to local and international market
that Brazil reacts strongly to global macroeconomic news, especially from the
US and Europe and increasingly from China – its biggest export-import partner,”
he said. “It is an established, liquid, electronic market with liquid equity
index futures and opportunities in multiple asset classes and a strong base of
local interest in algo trading technology. As such, Brazil provides a good base
for a service such as ours."
Several large international brokers and technology and
connectivity firms have released trading algorithms, connectivity links and
other electronic trading technology in Brazil in the last 18 months, including
Goldman Sachs, Deutsche Bank, Morgan Stanley, Fidessa, SunGard and StreamBase. In
addition, US exchange operators Direct Edge and BATS Global Markets have also
expressed interest in launching a trading platform in the country to compete
with incumbent exchange BM&F Bovespa, though any such plans would need to
find an independent solution for clearing, as the native bourse has stated that
it would not clear for a rival.