Progress made on Brazilian alternative venue

Latin American software vendor, Americas Trading Group, and NYSE Euronext have taken further steps for the launch of an alternative trading venue in Brazil, with a request for regulatory approval.

Latin American software vendor, Americas Trading Group (ATG), and NYSE Euronext have taken further steps for the launch of an alternative trading venue in Brazil, with a request for regulatory approval.

The two groups made an authorisation request to the Brazilian Securities and Exchange Commission, CVM, to operate Americas Trading System Brasil (ATS Brasil).

The new exchange, scheduled to begin operations in 2014, pending approval by CVM, would focus on equities trading, and may expand to other products in the future.

“The entry of ATS Brasil will be very positive for the evolution of the Brazilian stock market by adding another important trading platform to the region that will encourage growth and increase access to our markets,” Alan Gandelman, a Latin American industry veteran and the newly-appointed CEO of ATS Brasil, said.

“It is intended to support meaningful cost reduction while offering significant efficiency gains to investors, further positioning Brazil amongst the world’s most attractive markets.”

Subject to regulatory approval, ATS Brasil will join the country’s only exchange, BM&F Bovespa. However, according to ATG, the new platform was not intended to compete with the incumbent, but instead complement it by improving liquidity and price formation.

“This new stock exchange is a natural evolution of the market. Since the announcement of the formation of ATS Brasil, we have had great acceptance and interest from many institutions and we believe that the Brazilian market has enormous development potential,” ATG’s COO Arthur Pinheiro Machado said.

The new exchange will use NYSE Technology’s Universal Trading Platform (UTP) and Secure Financial Transaction Infrastructure (SFTI) network to provide global access and direct market data distribution for customers trading outside Brazil.

NYSE Technology has completed the customisation of the trading technology, and is now testing the platform functionality and global connectivity capabilities. 

ATG and NYSE Euronext weren’t the only operators moving into the Brazilian market. US exchange operator Direct Edge is looking to launch an equity trading venue that would compete directly with BM&F Bovespa, while Chi-X Global has partnered with the incumbent to launch a platform that allows trades in foreign currencies.

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