Trading technology provider Fidessa has launched a new platform tailored specifically for trading in Mexico, following the introduction of new market regulations in September 2010.
Using the platform, Fidessa clients will have functionality for trading across asset classes, that is compliant with new routing and order prioritisation rules introduced by domestic exchange Bolsa Mexicana de Valores (BMV) in conjunction with trade body the Mexican Securities Industry Association and Mexican regulator, the ComisiÃ³n Nacional Bancaria y de Valores. The new rules enable brokers to send client orders in parallel through multiple channels to the exchange, where previously only one channel was permitted, through which orders had to be sent sequentially. New order types, such as market orders, and crossing functionality for buy-side firms were also introduced.
Similar to other implementations of Fidessa's trading platform, the Mexican version provides straight-through processing from order inception to trade confirmation, with integrated real-time global market data, and order management tools. It also includes algorithmic, program and pairs trading plus DMA trading tools, as well as access to Fidessa's connectivity network.
Specific to Mexico, the platform allows brokers to establish multiple channels to the exchange using separate FIX connections and supports all the new order types made available by the changes to regulation. It includes level one market data sourced from the BMV, available via a direct feed handler into Fidessa's market access module or from the firm's market data ticker plant. Traders can also validate orders by tick scales and round lot checks based on last execution price, tradability of instrument, extraordinary price fluctuations, foreign entry trading restrictions and, where applicable, custodial positions.
“Average daily orders in the Mexican cash market have increased threefold over the past year, and as global investors look to Mexican markets for new opportunities, we remain focused on improving functionality and trading rules,” said Alfredo Guillen, transactional service director, BMV. “By working with a company such as Fidessa, which has developed solutions to address regulatory changes like MiFID in Europe and RegNMS in the US, we are taking another big step towards increasing foreign interest and investment in Mexico.”