Brazilian exchange BM&F Bovespa has reported rising high-frequency trading activity in its Bovespa equities segment, accounting for 7.4% of average daily traded value during Q2 2011.
Gross operating revenues were US$325.83 million during Q2 2011, falling 1.5% in comparison with the same period last year mainly due to lower volumes traded on markets in the Bovespa segment. The BM&F derivatives segment volumes climbed 5.8% year-on-year and securities lending grew 39.3% year-over-year. The exchange reported a 2.1% increase in overall trading volumes in Q1 2011.
“Our core BM&F business grew in a very challenging market and high-frequency trading in equities is enjoying positive momentum,” said BM&F Bovespa CEO Edemir Pinto. “We are implementing a new fee structure that will eliminate cross subsidies embedded in our trading and post-trade fee rates, which will make our prices more comparable to those of our international peers and strengthen our competitive position.”
The exchange plans to deliver the derivatives module of its new multi-asset platform in Q3 2011, in collaboration with US derivatives exchange the Chicago Mercantile Exchange Group. BM&F Bovespa has also stated that it is working to create long-term sustainable growth through building up its diversified products and making further IT investments.
BM&F Bovespa plans to introduce eight new currency features on 15 August 2011; it also started the calculation and publication, in real time, of four new indices, which
allow it to create and offer exchange-traded funds, in May 2011.