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 international standards.”
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.
Equities and 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 service, Bclear.
Cash trading and listings net revenue decreased to US$282 million in Q3, a 20% drop compared to Q3 2011.