Direct market access

SunGard provides DMA for Brazilian derivatives

BM&F Bovespa, the multi-asset-class Brazilian exchange, has selected technology firm SunGard as its fourth provider of direct market access (DMA).

SunGard will offer BM&F’s members and their clients an order routing system for the direct trading of financial and agricultural derivatives traded at the exchange.

DMA allows investors to directly access the exchange’s electronic derivatives trading platform, GTS, without having to send data through a broker’s network. DMA to BM&F Bovespa is monitored by the broker that provides the access.

Since BM&F launched DMA services in 2009, Marco Polo networks, Bloomberg Tradebook and Cedro Market & Finances have signed up as providers.

SunGard is also working with BM&F to develop a back-office solution for US clients that trade agricultural and financial derivatives in Brazil. According to the exchange the solution is intended to help customers increase efficiency by automating the process of loading trades, performing book-keeping functions and calculating margins and fees.

DMA trading represented 4%, or 3.2 million contracts, of total derivatives contracts traded on BM&F Bovespa in February 2010.