BM&FBOVESPA Provides Investors With Direct Access to the Brazilian Derivatives Market via Bloomberg Tradebook

BM&FBOVESPA has just authorized Bloomberg Tradebook do Brasil Ltda to act as a provider of direct market access (DMA), which will allow investors to connect directly to the Exchange’s derivatives trading system, or Global Trading System (GTS). This authorization will allow Bloomberg to offer its customers an order routing system via the infrastructure that is furnished by Bloomberg, with its hardware and software structure located in an external data processing facility that is independent from BM&FBOVESPA.

The system works as follows: after obtaining an authorization from a brokerage house to trade contracts in the BM&F segment, the investor will establish a direct physical connection to the order book of the Exchange’s GTS derivatives trading system. This physical connection is accomplished directly between Bloomberg and the Exchange through the Financial Community Communication Network (RCCF), allowing orders to be sent to BM&FBOVESPA through a proprietary FIX session, without transmitting the data through the brokerage house’s network.

The connection between the investor and the Exchange, however, is monitored by the brokerage house that provided the access so as to enable it to control the customer’s order flow. The brokerage houses that are interested in using the services of Bloomberg Tradebook must contract these services directly from Bloomberg.

With the adherence of Bloomberg Tradebook do Brasil Ltda., BM&FBOVESPA now has two DMA access providers for the derivatives and futures markets. The service related to the routing of orders to the GTS, which has been provided by the company Marco Polo since January of 2009, is also available to all the CME Group Globex system users. Other companies are currently in the process of obtaining authorization and will soon offer similar services, which will further facilitate the access of investors to all the products offered by the Brazilian Exchange.

Source:BM&FBOVESPA, 04.05.2009

Filed under: BM&FBOVESPA, Brazil, Exchanges, Latin America, News, Trading Technology, Bloomberg, BM&FBOVESPA, Brazil, CME, Data Vendors, Derivatives, DMA Direct Market Access, Exchanges, Latin America, Marco Polo Network, Mercado Electronico, Order Routing, Trade Connectivity, Transação Eletrônica