Brazil’s financial institutions are reaching beyond their borders with new connectivity and technology solutions, with the signing of two deals between Brazilian banks and third-party technology providers.
Brazilian Votorantim Corretora, the brokerage arm of Banco Votorantim, has connected to the SunGard Global Network (SGN) and is using the technology provider’s Valdi order management system to provide clients with direct market access and care order handling.
Votorantim also uses SunGard’s Valdi execution management system and Valdi DMA, which helps it offer clients a solution to manage and execute orders on Brazilian exchange BM&F Bovespa’s equities and derivatives segments via a single platform.
The agreement is intended to allow Votorantim Corretora to achieve economies of scale, source new liquidity internationally and increase its operational efficiency.
“SunGard’s Valdi and SGN are helping us expand our business by aiding us in providing our clients with a platform to trade multiple asset classes, globally,” said Ricardo Braga, general manager of Votorantim Corretora. “The SunGard Global Network helps us solve the connectivity challenges related to trading new instruments locally and internationally.”
Meanwhile, Brazilian investment bank BTG Pactual has chosen to use a system from application software provider Calpyso Technology to support its full range of portfolio assets including OTC derivatives and securities.
In the first phase, BTG Pactual will implement Calypso’s back-office system for interest rate and equity derivatives products across the firm’s global operations. Using Calypso, the firm will consolidate several internally-developed systems covering multiple asset classes onto a single platform that can be configured to handle Brazilian conventions and rules in addition to its international portfolio.
“Latin America is an emerging hotbed of trading activity and we’re pleased to continue our expansion in this region,” said Carlos Patiño, director, business development, Latin America at Calypso.
The Brazilian government recently abolished a tax placed on foreign investors trading equities – a move which has been seen by the country’s domestic exchange, BM&F Bovespa, as a good incentive to stimulate trading activity in Brazil.
There have been several recent technology investments in the country, including Portuguese-listed bank Espirito Santo Securities, which contracted trading software provider Ullink for connectivity, order management and pre-trade risk software for trading on Brazil’s BM&F Bovespa exchange in October 2011.