Global exchange group Nasdaq OMX has entered discussions with BM&F BOVESPA, the Brazilian securities, commodities and futures exchange, about forming a possible strategic partnership.
Over the next 60 days, both parties will hold exclusive talks on ways to establish strategic, commercial and technological links.
Technological synergies could 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, with Brazilian investors trading US stocks listed on Nasdaq OMX, as well as a non-exclusive agreement for each exchange to provide equities trading activity data to each other.
The companies will also discuss the possibility of a commercial agreement that will allow BM&F BOVESA-listed companies to benefit from Nasdaq OMX products and services such as investor relations, structuring and management of board of directors and market and analysts communications.
BM&F BOVESPA was formed in 2008 after the merger of the Brazilian Mercantile and Futures Exchange and the Sao Paulo Stock Exchange, making it the second largest exchange in the Americas.
Outside the US, Nasdaq OMX operates exchanges in Sweden, Denmark, Finland and the Baltic countries, and also operates a pan-European trading venue, Nasdaq OMX Europe, and dark pool, NEURO Dark. It also has a 30% stake Nasdaq Dubai and owns 22% of EMCF, a pan-European clearing house.
BM&F BOVESPA has offices in London, New York and Shanghai and has already established a partnership agreement with the Chicago Mercantile Exchange.