US-based exchange group Nasdaq OMX has extended an exclusive discussion period with BM&F BOVESPA aimed at establishing a commercial partnership with the Brazilian bourse.
The two exchanges signed a non-binding memorandum of understanding at the end of August with the goal of collaborating commercially in specific areas. However, a definitive agreement was not reached before the memorandum expired on 25 October. The new agreement will expire on 31 December 2009.
The initiatives being explored include the development of an order routing system between the exchange groups that would allow US investors to send buy and sell orders to BM&F BOVESPA’s MegaBolsa trading system and Brazilian investors to trade US stocks listed on the Nasdaq Stock Market via a US broker. The exchanges are also hoping to reach agreements to distribute each other’s stock price and trading activity data and to allow BM&F BOVESPA to offer Nasdaq OMX products to Brazilian public companies, including support for investor relations activities.
BM&F BOVESPA was formed in 2008 from the merger of the Brazilian Mercantile and Futures Exchange and the Sao Paulo Stock Exchange (Bovespa), creating the second-largest exchange in the Americas.