Exchange operator MEMX and Brazilian financial market infrastructure (FMI) CSD BR have signed a memorandum of understanding (MoU) to explore the establishment of a second trading venue in Brazil.
David Mellor
Currently, Brazil operates with a single official stock exchange – B3 – and the addition of a second venue would expand the region’s market access, as well as boost its competition and growth on a global scale.
Specifically, the partnership would leverage MEMX’s global trading connectivity and exchange operating experience with CSD BR’s local market knowledge, regulatory experience and established infrastructure.
Speaking to The TRADE, David Mellor, head of market technology at MEMX, said: “Partnering with CSD BR to provide more choice for investors seeking to trade Brazilian assets by utilising MEMX’s proven exchange technology is highly aligned with our founding mission.
“We are in discussions with new and existing trading venues around the world looking at opportunities to leverage MEMX’s market technology and operational expertise, and we are very pleased to be able to work with CSD BR on this exciting initiative to drive competition in the Brazilian exchange space.”
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CSD BR operations span approximately 90 participants across its platforms, as well as more than 1,500 investment funds in its ecosystem.
Meanwhile, MEMX powers two US equity exchanges, as well as an alternative trading system (ATS), supporting various different asset classes.
“We see a significant opportunity to enhance connectivity with market participants through technology that is already trusted and used globally – and to accelerate capital flows along the north-south axis via MEMX’s platform,” said Daniel Miranda, chief financial officer, CSD BR.
“In today’s emerging market landscape, we believe this initiative represents a meaningful opportunity for Brazil.”