Brazil Ramps Up Derivatives

Terry Flanagan

Algorithmic trading and co-location are viewed as must-haves.

The Brazilian broker-dealer community is ramping up use of algorithmic trading technology and co-location as they seek to cater to a growing class of professional derivatives traders.

Link Investimentos, Brazil’s largest derivatives trading firm by volume, has selected Trading Technologies’ TTNET, a low-latency, fully managed hosting solution to provide access to BM&F Bovespa for institutional clients and internal execution desks.

“Latin America in general and Brazil in particular are experiencing a large prosperous demographic shift, tremendous wealth creation, capital expenditure, and high yielding currencies and fixed income,”  Guy Scott, managing director, at Trading Technologies, told Markets media. “These factors have combined with technology advances to make the regions both attractive and accessible from all over the world.”

Link will use TTNET to distribute TT’s X_TRADER order-entry software and API solutions to its institutional client base.

“With TTNET, Link and their clients will be connected to TT’s dedicated, global, high-speed, trading-only network,” said Scott. “Teamed with the X_TRADER software, Link and its customers will have access to trading-specific tools such as customized spreading, algo creation and advanced order types that are hosted at the exchanges and easily modified using the X_TRADER software.”

Orders placed through TT’s Strategy Engine (SE) family of server-based execution products are executed on a server located in close proximity to the exchange matching engine. TT’s SE family currently includes two products, the Autospreader Strategy Engine and the Synthetic Strategy Engine. TT expects to launch its third product, Algo Design Lab (ADL), in the fall of 2011.

ADL provides traders of every level of expertise a combination of capabilities needed to move into advanced low latency algorithmic and black box trading. The platform allows traders to create high frequency strategies quickly and safely without having to write source code, the company says.

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