Brazilian exchange BM&F Bovespa and Brazilian self-regulatory organisation Bovespa Market Supervision (BSM) are to use Nasdaq OMX’s SMARTS Integrity market surveillance platform to monitor trading across their equities and commodities platforms.
In its first implementation in Latin America, SMARTS Integrity platform will provide BM&F Bovespa and BSM with automated market surveillance designed to strengthen market oversight and alerts for particular market behaviours.
Market integrity and surveillance concerns have been gaining prominence in both the US and Europe. In the US, the lack of a coordinated approach between exchanges when dealing with erroneous trades was widely cited as a contributing factor to the massive slide in US stock prices during the ”flash crash of 6 May 2010.
In Europe, fragmentation of liquidity across multiple trading venues has raised doubts over the ability of regulators and exchanges to maintain a fair and orderly market.
“BM&F Bovespa is committed to maintaining the highest level of market integrity and an operating framework that inspires confidence amongst participants,” said Cicero Vieria, chief operating officer, BM&F Bovespa. “SMARTS Integrity’s cross-market surveillance platform will allow us to monitor our markets effectively and efficiently, with the scalability to process increased volumes as we expand.”
BM&F Bovespa reported record financial volume, monthly and daily average trades in equities in August 2011. Total equity market volume for the month was US$103.87 billion across more than 16 million trades, with daily averages of US$4.51 billion and more than 700,000 equity trades.
BM&F Bovespa and BSM said they intended to explore further opportunities to expand their partnership.
Nasdaq OMX purchased Australia-based SMARTS Group in July 2010.