IntercontinentalExchange (ICE), a US-based operator of futures bourses, has teamed with Brazilian central securities depository Cetip to launch a hybrid fixed income trading platform.
The platform, known as Cetip Trader, will offer electronic trading and voice trading confirmations of Brazilian fixed income instruments. It will use straight-through-processing and combine real-time and historical market data to aid transparency, price formation and workflow automation for the instruments it offers.
ICE will provide the technology that underpins the new market, including functionality such as the ability to buy and sell electronically and settle bilaterally, a request-for-quote mechanism, limit order volume clearing to help form prices during an auction process, and volume clearing, which is designed to help participants increase trading volume.
The platform will also offer allocations processing and depository registration via ICE Link, a post-trade connectivity and middleware platform.
"ICE was the natural choice to develop this tool with us because of its technology expertise and ability to adapt this platform to the Brazilian market," said Carlos Ratto, commercial products, marketing and communications officer, Cetip.
Options for trading Brazilian fixed income products are expanding after the January approval by Brazilian regulator Comissão de Valores Mobiliários and the Central Bank of Brazil for bond platform operator MarketAxess to offer electronic trading of local currency debt. MarketAxess previously only offered US dollar-denominated trading of Brazilian debt, with volumes reach US$9 billion in 2011.