As technology has improved access to markets in Latin America and regulators in those markets increasingly facilitate foreign participation, interest from other continents continues to grow.

Brazil is a prime example of this trend. BM&FBOVESPA is the largest exchange in Latin America and the third largest exchange worldwide in market value.  While the Brazilian markets have been affected by the global financial downturn, the effects on Brazil have been less severe as banking and trading have traditionally been more local in focus. The convergence of the increased attractiveness, the will to ease regulation and improving technology have led many to recognize Brazil as a “sleeping giant,” according to John Dempsey,  Vice President, Business Development for RTS.

In late 2007, BM&F, the Brazilian Mercantile & Futures Exchange, and Bovespa, the São Paolo Stock Exchange, demutualized and each embarked on initial public offerings. In 2008, the exchanges merged to form BM&FBOVESPA, the Brazilian Securities, Commodities & Futures Exchange. The exchange offers equities, securities, financial assets, indexes, interest rates, agricultural commodities, and foreign exchange futures and spot contracts.
In the past, BM&F was largely a phone broker market, and those who wished to participate needed to speak Portuguese. Electronic trading, which now accounts for 95 percent of the volume, has removed those barriers. 

In recent months, the exchange has combined with CME Group to launch its North-to-South and South-to-North order routing links between CME’s Globex and BM&F’s GTS electronic trading platform. Now the BM&F segment is focusing on providing direct market access (DMA) to its popular products from those outside of Brazil, as well as enhanced electronic trading nationally. Given the multi-asset nature of the exchange, low latency access and multi-asset capabilities are important components for any trading solutions offering. 

BM&F began offering co-location in December 2008, enabling clients of local brokers to access its markets directly. International participants, including proprietary traders looking for new liquidity sources, are anxious to tap into new marketplaces such as the Brazilian markets.  The exchange’s broad offering of liquid, dollar-settled agricultural products are also attractive to investors in countries in Asia such as Japan and China, where commodities are popular.

RTS is well positioned to benefit from this new emphasis, given the firm’s strengths in multi-asset class, data center capabilities, broad connectivity and strength with algorithmic, proprietary, brokerage and hedge fund members of the international trading community. Said Christophe Rilinger, RTS Vice President, Marketing & Communication: “We are pleased to work closely with BM&FBOVESPA to ensure that we help broaden international access to this valued marketplace, as well as meet the needs of its domestic members.”

On Tuesday, April 28, in cooperation with BM&FBOVESPA and CME Group, RTS will host a Webinar entitled:

“Brazil – The Sleeping Giant” 

Participating in the seminar with RTS will be officials from BM&FBOVESPA and CME Group.

For more details email us at info@rtsgroup.net.