Cetip, the Brazilian fixed income central securities depository (CSD), has signed an agreement with the IntercontinentalExchange (ICE) to develop a new fixed income trading platform for Brazilian corporate and government bonds.
The platform will offered by Cetip and will be delivered to the market in the second half of 2012. Cetip is responsible for product strategy, as well as promoting use of the new platform in Brazil. ICE is in charge of all the technology development for these new tools.
Luiz Fernando Vendramini Fleury, CEO of Cetip, said the CSD decided to partner with ICE as it is a globally recognized company and it has OTC market expertise.
“A major reason for this partnership is the fact we have identified that ICE had a successful tool to push liquidity and pricing formation for a not as liquid market like the credit default swaps, similar scenario we currently have with our local corporate debt,” he said. “In addition to this, the speed they have offered to adequate the product to our market was another key factor.”
“ICE is pleased to deepen our relationship with Cetip and build on our presence in Brazil,” said ICE chief strategic officer David Goone. “Through this partnership we are combining Cetip’s leadership in fixed income markets together with ICE’s technology and experience in building liquid, transparent markets to bring more liquidity and depth to the bond markets in Brazil.”
ICE has a 12.4% stake in Cetip.
Reporting by Janet du Chenne, Global Custodian, an Asset International publication