Brazil Buildouts Continue
The Brazil trading landscape continues to expand as exchanges build fast connectivity for both domestic and international investors.
Perseus Telecom’s LiquidPath platform connects the Perseus network connection of New York’s Nasdaq OMX datacenter with the Sao Paulo Equinix/ALOG datacenter and into the site of the BM&FBovespa exchange.
In Brazil, LiquidPath is run by a local Perseus team of financial technology experts who purchase, install and manage equipment used for market data and trading in the Brazilian financial markets.
The service has connected Equinix/ALOG with BM&F Bovespa in less than 50 microseconds making LiquidPath the fastest connection in market. LiquidPath is an RCB compliant network of Brazilian exchange market data and trade execution messages.
“The LiquidPath solution enables customers to quickly deploy into Brazil’s exchange market without having to deal with the regulatory and local processes that can be complex and take a while,” said Marcos Guimaraes, president, Perseus do Brazil. “LiquidPath manages this process with our local Brazilian FinTech professionals in-market who help counterparties connect to DMA services available in with the same data center.”
The LiquidPath connectivity service, provides a low latency connection from Equinix/ALOG SP-1 to BM&F Bovespa CT-1 in under 50 microseconds.
“Brazil’s exchange market is pretty advanced with low-latency trading,” said Guimaraes. “The BM&F Bovespa uses similar technology as the Chicago Mercantile Exchange, which means firms around the world can trade BM&F Bovespa with the same software and hardware vendors they use now for the CME.”
LLC today BM&FBovespa has completed the formal acceptance of the Chi-FX from Chi-X Global Holdings platform for commercial use.
Chi-FX powers BM&FBovespa’s BEI (Brazil Easy Investing), which allows registered Brazilian brokers to provide retail and institutional investors based outside of Brazil quotes of Brazilian exchange-listed stocks in their local currency.
By leveraging the Chi-FX technology, BEI integrates market data from BM&FBovespa stock quotes with FX rates offered by Brazilian banks.
“This is a major milestone for our Chi-FX platform” said Tal Cohen, CEO of Chi-X Global. “Brazilian market participants will be able to offer their off-shore clients an automated solution for trading Brazilian equities with embedded FX rates, thereby reducing latency, broadening access and minimizing currency risk for international investors.”
BM&FBovespa is in the process of completing the additional steps necessary to have BEI ready for participant certification and then full production use. “We are looking forward to the launch of BEI, which coupled with the recent changes to the CPF registration process, will represent a significant step in the ongoing development of the Brazilian capital market and facilitated access to non-resident investors,” said Cicero Vieira Neto, chief operating officer of BM&FBovespa
On May 14, 2013, the Secretariat of the Federal Revenue of Brazil (RFB) announced that the Brazilian Securities and Exchange Commission (CVM) will be able to directly submit applications for the issuance of tax registration numbers (CPF). This is expected to significantly decrease the waiting period required for individuals to register and receive a CPF as well as simplify the application process.
The CVM and RFB are finalizing their plans to align their systems to facilitate the change, which will effectively reduce the time to open an account in Brazil and, consequently, to start operating with a Brazilian brokerage.
The Perseus LiquidPath product is part of a suite of services designed to help trading firms get access to far reaching exchanges’ market data, send order execution and be in proximity with the trading community of multiple markets.
Perseus is set to launch its sub-nanosecond timestamp service within the LiquidPath environment to meet growing demand for lower latency.
“With Brazil’s regulatory landscape opening up more international participation and in particular, opening up the buy-side in Brazil able to trade more foreign securities, we expect major global brokerages to continue to deploy their hi-tech algorithmic, CEP and other ULL platforms in Brazil,” said Guimaraes.
Clearly regulation helps with cross-border expansion, both southbound and northbound. “Brazilian, Chilean, Colombian banks, as seen with Mexico, are now offering more access to LatAm markets due to regulatory easing, low-latency applications and of course the increasing success of LatAm trading markets,” said Guimaraes.
Upstart exchange has seen market share increase to near 4%.
Goldman Sachs Asset Management’s fundamental equity business manages over $20bn in thematic equities.
Data extraction and integration is the second stage of a digitization process.
With Ankit Mittal, Business Change Manager, Global Trading, Schroders
IIGCC and lead investors will launch a pilot with companies including BP, Eni, Repsol, Shell and Total.