International investors will be able to buy and sell Brazilian equities using streaming quotes in their own base currency, following an agreement between exchange technology provider and trading venue operator Chi-X Global and BM&F Bovespa, the Brazilian exchange group.
Buy-side traders will also be able to enter orders with limit prices in their base currency and simultaneously execute the equity and foreign exchange legs of transactions, thereby mitigating intraday FX risk.
The new service, Chi-FX Brazil, will use executable foreign exchange rates provided by liquidity providers to disseminate streaming quotations for Bovespa-listed equities to foreign investors.
Chi-X Global, a subsidiary of agency broker Instinet, will develop and support the platform, while Bovespa will market the service to its participants and provide facilities, expertise and front line customer support. The two parties plan to begin implementation of the service later this year.