Financial software provider StreamBase has entered into a partnership with Brazilian trading technology company Alphastream, to capitalise on the growing demand for electronic trading in Brazil.
The link will enable StreamBase to deploy its complex event processing (CEP) technology to financial institutions in Brazil.
According to StreamBase, its recent deal to supply its CEP services to Brazilian high-frequency trading firm a Kairos Asset Management has led to a number of enquiries from similar firms looking to launch algorithmic strategies in the country.
The move comes amid a period of great demand for low-latency and high-frequency trading in Brazil. According to the Brazilian exchange group BM&F Bovespa, the average trading volume of high-frequency traders reached a record high in the first quarter of 2010.
Global investment banks including Bank of America Merrill Lynch, Credit Suisse, Goldman Sachs and Morgan Stanley have all launched electronic services in the country within the last 12 months, while market centre operator Chi-X Global launched a new service in partnership with BM&F Bovespa that allows international investors to trade Brazilian equities using streaming quotes in their own base currency.
“The growth of the Brazilian market has gained substantial attention from foreign investors,” said Martin Koopman, a financial services software analyst who specialises in Latin American capital markets. “At the same time, there is an increased demand from the local trading community, including hedge funds, asset managers, investment banks and broker/dealers for upgrading their technology platforms to keep up with global competition.”