ATG and NYSE launch Brazilian alternate venue
Latin American software vendor, Americas Trading Group (ATG), and
NYSE Technologies have joined forces to launch a new equities matching platform
called Americas Trading System Brasil.
In a partnership in which ATG maintains a controlling
interest, the two firms are developing a liquidity centre based on trading
solutions developed by NYSE Technologies, with a view to going live in 2013,
subject to regulatory approval.
Fernando Cohen, president, ATG, said initially ATS Brasil would
operate as a self-regulated entity in Brazil’s “organised OTC market” using computerisation
and transparency in order registration and execution.
“The entry of ATS Brasil starts a new cycle in the Brazilian
exchange market. Our innovative, high-performance order execution platform will
generate more liquidity for the capital markets,” said Cohen. “This initiative
should stimulate cost reduction by offering efficiency gains for investors and
create the real possibility of placing the Brazilian market within
ATS Brasil will use NYSE Technology’s Universal Trading
Platform (UTP) and Secure Financial Transaction Infrastructure (SFTI) network
to provide global access and direct market data distribution for customers
trading outside Brazil. One of the new venue’s aims is to attract more local
and international high-frequency traders to the Brazilian market.
Cohen stressed the new venue “was not created to compete
with BM&FBovespa”, but instead would aim to complement the incumbent
exchange by improving liquidity and price formation.
derivatives drag down NYSE Q3 results
The new Brazilian venture comes at a time when NYSE
Technologies owner, NYSE Euronext, is developing a number of products to boost falls
in revenue. Trading levels in cash equities and derivatives have lead to net
revenue sinking by one fifth to US$559 million for the third quarter of 2012.
Derivatives net revenue of US$164 million decreased 27%
compared to Q3 2011, driven by lower average daily trading volumes.
Yet amidst challenging market conditions, the company said it
had developed strong new products which would benefit future growth, including being
the first European exchange to launch futures contracts on the small- and
mid-cap Russell Europe SMID 300 Index on NYSE’s market wholesale derivatives
Cash trading and listings net revenue decreased to US$282
million in Q3, a 20% drop compared to Q3 2011.