US futures exchange CME Group has extended its partnership with BM&F Bovespa with a new cross-listing arrangement that allows US-based investors to gain exposure to Brazilian stock index performance.
From the second half of this year, CME will list IBOVESPA index futures, the main indicator of the Brazilian stock market's average performance, denominated in US dollars and clearing through CME Clearing.
The deal will also see the Brazilian exchange group start trading a range of CME contracts, including US dollar-denominated S&P 500 index futures, settled in Brazilian real, CBOT-listed mini-sized soy bean futures and NYMEX-listed light sweet crude oil futures.
The agreement could also lead to the licensing of additional products in the future.
"This initiative will allow our clients to improve their ability to better manage market and credit risk exposure across various asset classes," said Bryan Durkin, CME Group COO and managing director, products and services. "As our relationship expands, we will continue to explore joint technology and product opportunities with BM&F Bovespa to bring more innovative and new trading solutions to the global marketplace."
In addition to the cross-listing arrangements, BM&F Bovespa and CME Group have partnered on a number of other initiatives including Puma, the Brazilian bourse’s new multi-asset trading platform that is based on the CME’s Globex technology, and order routing arrangements.
"Our long standing strategic partnership with CME Group continues to bring new benefits to both companies' customers," said Marcelo Maziero, chief product and customer officer at BM&F Bovespa. "The cross-listing arrangement will provide much easier local access to international flagship products with little or no extra technology investment, catering for better risk management with reduced costs."