Bolsa Electronica de Chile (BEC), an alternative trading venue in Chile, has signed a deal with market operator Nasdaq OMX for the provision of market technology, exchange trading and advisory services.
The move will initially offer BEC’s members improvements in performance, latency and throughput capacity. Nasdaq OMX will also advise BEC on their efforts to cross-list shares, develop new indices, improve existing indices and begin a case study to create peso-dollar futures for trading on Nasdaq OMX exchanges.
“Nasdaq OMX market technology will open the doors to achieve real interconnection for investors who wish to enter the Chilean marketplace and the advisory services will help us create new instruments for investors around the world,” said Fernando Canos, president of BEC.
BEC was created in 1989 and claims to be the first Latin American exchange to use fully electronic systems to execute its trades. BEC has 41 shareholders and 24 broker-dealers using its systems.
Chile is currently seeking to gain increased access to international investors. As part of the Mercado Integrado Latino Americano (MILA) initiative, Chile’s main stock exchange Bolsa de Comercio de Santiago is already signed up to a three-way order routing system together with bourses in Peru and Colombia.
Nasdaq OMX technology is currently used by some 70 exchanges in 50 countries. Brazilian exchange BM&F Bovespa is using a Nasdaq OMX market surveillance platform to monitor trading across its equities and commodities platforms. BM&F Bovespa also has an agreement with Nasdaq OMX, under which broker-dealers from Brazil and North America can send orders for cash equities traded in the other country on either BM&F Bovespa or Nasdaq OMX via a broker local to the appropriate exchange.