Global exchange group Nasdaq OMX and Brazilian counterpart BM&F Bovespa have entered into a commercial partnership after months of negotiations.
The two exchange groups renewed a memorandum of understanding to forge the relationship on 23 October 2009, following the expiry of the original memorandum, which was signed at the end of August last year.
Under the agreement, the two firms will collaborate commercially in specific areas. They will distribute each other’s stock price and trading activity data and BM&F Bovespa will offer Nasdaq OMX products and services to Brazilian public companies, including support for investor relations activities.
Nasdaq OMX will continue to collaborate with BM&F Bovespa on other strategic opportunities such as potential technology cooperation.
In addition to the contract regarding market data and corporate services, Nasdaq OMX plans to develop a communications system to facilitate the routing of orders between participating brokers located in the US and Brazil.
The service will enable participating North American broker-dealers to send orders for cash equities traded on BM&F Bovespa through a contractual relationship with a Brazilian broker, and participating Brazilian brokers to send orders for cash equities traded in Nasdaq OMX through a contractual relationship with a North American broker dealer.
“We believe our agreement with the BM&F Bovespa is a strong blueprint for how global exchanges can cooperate and leverage their global networks, key assets and the benefits of their geography,” said Bob Greifeld, CEO, Nasdaq OMX Group, in a statement.
“We are thrilled to have the opportunity to partner with BM&F Bovespa, an important global exchange player, to expand our respective businesses. Nasdaq OMX is also pleased to launch a high-speed connectivity service for US and Brazilian brokers.”
Nasdaq OMX has various commercial partnership agreements via market technology relationships with 70 markets around the world. Recent broader collaborations include those with the Kuwait Stock Exchange and Osaka Stock Exchange, as well as the forthcoming launch of N2EX, a new power market in the UK.