The exchange operator will look to launch a new electronic exchange to be based in Rio de Janeiro in late 2012.

The U.S.’s fourth largest equities exchange operator by market share has announced plans to enter the Brazilian market with Direct Edge Equities, an all-electronic platform for the trading of Brazilian equities. The exchange is expected to go live in the fourth quarter of 2012, pending regulatory approval from the Comissao de Valores Mobiliarios.

“Brazil has really flourished in the past few years to become a preeminent market globally,” said William O’Brien, chief executive officer of Direct Edge in a conference call. “The introduction of another stock exchange in Brazil will foster competition and encourage innovation.”

The exchange will operate as an independent, local company, majority owned by Jersey City-based Direct Edge. If approved, it would be the first stock exchange based in Rio de Janeiro since 2002, when Bolsa de Valores do Rio de Janeiro was sold to BM&F Bovespa. The company sees competition continuing to increase in many global markets.

“The trend globally is greater competition among exchanges,” said O’Brien. “You’re seeing the same pattern in Europe, Canada, Australia and Asia.”

Direct Edge’s move to launch a Brazilian exchange is the latest chapter in Latin America’s ascent as an emerging market.

Finamex, a Mexican agency-only broker-dealer, recently announced the launch of a new suite of algorithms aimed at trading U.S.-based securities in the Mexican market. The algorithms are designed to arbitrage any price discrepancies or inefficiencies between venues due to data latency.

The move is part of a shift in the Mexican trading landscape toward more algorithmic trading. Exchange operators Bolsa Mexicana de Valores and MexDer have each entered into strategic partnerships with CME Group whereby they utilize the Chicago derivative exchange’s technology. Since the partnerships began, the markets have seen speed increase and become more efficient.