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Brazil: BM&FBOVESPA – News September 2011 – Nr.20

Launch of the first stage of the BM&FBOVESPA PUMATrading System

BM&FBOVESPA announces the conclusion of the first stage of development and integrated tests with the market of its new trading platform, named the BM&FBOVESPA PUMA Trading System. This is a multi-asset electronic trading platform that has been developed by BM&FBOVESPA and CME Group. BM&FBOVESPA PUMA Trading System will replace the Global Trading System (GTS), Mega Bolsa, BOVESPA FIX and SISBEX, integrating them into a single system with greater processing capacity, extremely low latency, and new functions. The implementation will occur in stages:

  • 1st Stage: Substitution of GTS (derivatives and spot foreign exchange);
  • 2nd Stage: Substitution of Mega Bolsa (equities and equity derivatives);
  • 3rd Stage: Substitution of BOVESPA FIX (fixed-income corporate securities) and SISBEX (government securities).

The Exchange implemented the BM&FBOVESPA PUMA Trading System in the spot foreign exchange market on August 29, 2011. The other stages will be executed in the following weeks, at dates to be announced at an opportune moment. As part of the GTS replacement effort, instruments will migratein four-stages. At each stage, orders sent to the Exchange for these contracts will be processed exclusively by the new system. The migration stages are:

  • 1st Migration: Spot foreign exchange contracts.
  • 2nd Migration: Agricultural derivatives.
  • 3rd Migration: Financial derivatives (interest rates, foreign exchange, inflation indices, gold etc.), except for derivatives based on stock indices.
  • 4th Migration: Derivatives based on stock indices.

Automated solution for market surveillance, operation and market oversight

BM&FBOVESPA and BOVESPA Market Supervision (BSM), the Brazilian self-regulatory organization in charge of inspecting and supervising transactions and trade authorizations, announced on September 15 that they will use NASDAQ OMX’s SMARTS Integrity market surveillance platform to monitor trading across their equities and commodities platforms. Using SMARTS Integrity, BM&FBOVESPA and BSM will have a comprehensive portfolio of alert scenarios for market behavior.

> More information

BM&FBOVESPA and BNDES present new portfolio for the Carbon Efficient Index

BM&FBOVESPA and BNDES announced on September 5 the composition of the theoretical portfolio of the Carbon Efficient Index, valid from September to December 2011. The ICO2 is an index composed of stocks in IBrX-50 index companies that have accepted involvement in the initiative, adopting transparent practices as regards greenhouse gas emissions (GGEs). The calculation of shares in the ICO2 index takes into consideration the greenhouse gas emissions and free float of companies.

The portfolio valid as of today can be viewed here.

New head of BM&FBOVESPA for UK

BM&FBOVESPA announces that Sergio Gullo has been hired as the new chief representative for BM&FBOVESPA in London. He will report to BM&FBOVESPA International Business Development Officer Lucy Pamboukdjian and be responsible for operations with the European, Middle Eastern and African markets. Sergio Gullo has been active in the financial market for more than 27 years. He was Business Development Manager in the United Kingdom for BGC Partners and has worked in financial institutions such as Banco Votorantim and Renaissance Capital, specializing in emerging markets and always in commercial areas with a focus on fixed income and structured products. He also held a wide range of positions at Lloyd’s TSB Bank for 19 years, in both Brazil and the UK.

New office in London

The BM&FBOVESPA office in London has moved to One New Change, 4th floor (London, EC4M, 9AF, United Kingdom). The London office may be contacted by e-mail at sgullo@bvmf.com.br and by telephone at (+44) 203 379 3978.

BM&FBOVESPA and Shenzhen Stock Exchange Sign Memorandum of Understanding

BM&FBOVESPA (BVMF) and the Shenzhen Stock Exchange (SZSE) signed on September 26 a memorandum of understanding (MOU) which includes personnel exchange, mutual training and information and experience sharing. Ms Song Liping, President of the Shenzhen Stock Exchange, and Mr. Edemir Pinto, CEO of BM&FBOVESPA, signed the MOU last month during the 5th International, Financial and Capital Market Conference in Campos do Jordão, in the state of São Paulo.

BM&FBOVESPA’s options and capital raising activity

According to the WFE (World Federation of Exchanges), BM&FBOVESPA is ranked as #1 in volume of Stock Options contracts trades and #4 in IPOs (Capital Raised). These and other regulated exchange industry numbers are available at: http://www.world-exchanges.org/statistics

Securities Lending

In August, the total number of securities lending transactions reached a record 141,721 compared to the previous record of 121,971 in May 2011 and to 114,989 in July. Financial volume was BRL 62.63 billion in August from BRL 52.16 billion the previous month.

Ibovespa and other index portfolios, valid for September-December 2011

BM&FBOVESPA has announced the Ibovespa theoretical index portfolio, which will be valid from September 5 to December 29, 2011, based on the closing of the September 2, 2011 trading session. The new portfolio now includes common shares in BR Malls and Cia Hering, which brings its total to 68 stocks in 63 companies.

> More information

BM&FBOVESPA launches app for Google Chrome web browser

BM&FBOVESPA announced on September, 16th that users of the Google Chrome web browser can download a free app that allows real time monitoring of the share prices of companies traded on BM&FBOVESPA and of the directions taken by the main capital market indexes. This tool allows users to customize their share portfolio, storing in the “Favorites” tab the companies that they wish to monitor daily. The app includes films that explain stock investment, wealth creation, and financial education. It also contains messages that are sent to the BM&FBOVESPA twitter channel @Info_BMFBOVESPA

To obtain the BM&FBOVESPA Google Chrome app, please access the Google Web Store and download the file at: https://chrome.google.com/webstore.

2011 EVENTS

Family Office Summit – Latin America

BM&FBOVESPA is currently sending invitations for this event promoted by the World Research Group and which will be held in São Paulo September 26-28. A BM&FBOVESPA representative is scheduled to talk about alternative investments. The summit will present current trends for optimizing effective strategies and alternative methods to produce investments for single and multi family offices in the Brazilian capital market. There will be a special networking session bringing together managers, single and multi family offices, advisors and consultants.

Location: Intercontinental São Paulo – Alameda Santos, 1123, São Paulo , SP.
Date: September 26-28, 2011.

> Full Agenda and Registration

2nd FX Growth Markets Series: Brazil – Profit & Loss

BM&FBOVESPA will join the Profit & Loss FX Growth Markets conference on October 20, 2011 at the Tivoli Hotel in São Paulo. Profit & Loss has been operating its highly successful series of Forex Network and FX Growth Markets conferences for more than 10 years, with regular annual events held in London, New York, Chicago, Singapore, Brazil, Mexico, Colombia, Chile, Shanghai and Toronto, and comes to Brazil for the second time. A BM&FBOVESPA representative will talk at the event.

Location: Tivoli Hotel São Paulo, São Paulo, Brazil
Date: October 20, 2011.

> Full Agenda

BM&FBOVESPA at Chicago’s FIA EXPO

BM&FBOVESPA will exhibit at FIA EXPO 2011. The event attracts approximately 5,000 people from more than 30 countries, from senior staff at brokerage firms and exchanges to floor traders, pension fund managers, corporate treasurers, CTAs and CPOs, and individual investors. BM&FBOVESPA staff will present the Exchange’s products, connectivity, DMA access via Globlex, co-location and others.

Location: Hilton Chicago, USA
Date: October 10-12, 2011

> More info

The World Cup of ETFs and Indexing Latin America

BM&FBOVESPA is lending its support to the World Research Group’s “World Cup of ETFs and Indexing Latin America.” The event aims at providing attendees with the best practices for ETFs use, as well as a comprehensive analysis of market structure, regulations and current and future opportunities. The expected audience includes pension funds, hedge fund managers and investors, investment advisors, financial consultants, and other market participants. A BM&FBOVESPA representative will talk about the Exchange’s ETF products.

Location: São Paulo (TBC)
Date: October 17-18, 2011.

> Full Agenda and Registration

Volumes and trades by Direct Market Access (DMA)

BM&F Segment
In August, BM&F* market segment transactions carried out through order routing via Direct Market Access (DMA) registered 41,417,494 contracts traded and 4,431,750 trades. In July, the volume reached 20,009,841 contracts traded and 2,417,398 trades.

The volumes registered by each access modality in the BM&F segment were as follows:

  • Traditional DMA – 17,540,231 contracts traded, in 1,306,241 trades, in comparison to 7,440,774 contracts and 797,002 trades in July;
  • Via DMA provider (including orders routed via the Globex System) – 14,088,756 contracts traded, in 435,281 trades, compared to 7,040,432 contracts and 258,881 trades in July;
  • DMA via direct connection – 4,210 contracts traded in 830 trades, against 3,691 contracts and 977 trades in July;
  • DMA via co-location – 9,784,297 contracts traded, in 2,689,398 trades, compared to 5,524,944 contracts and 1,360,538 trades in July.

In August, transactions carried out by foreign investors presented by CME to BVMF (who use the Globex-GTS order routing system or access BVMF markets via co-location) totaled 5,308,308 contracts traded, in 1,235,349 trades, compared to 2,897,744 contracts and 688,862 trades in July.

BOVESPA Segment
In August, order routing via DMA in the BOVESPA* segment totaled BRL 138,522,096,000.00 and 17,021,408 trades, from BRL 95,030,778,000.00 and 11,225,193 trades the previous month.

Trading volumes per type of DMA in the BOVESPA segment:

  • Traditional DMA – Volume of BRL 120,451,427,000.00 and 14,098,638 trades from BRL 87,674,861,000.00 and 10,091,956 in July;
  • DMA via co-location – Volume of BRL 16,691,370,000.00 and 2,755,498 trades from BRL 6,381,361,000.00 and 1,007,081 in July;
  • DMA via provider – Volume of BRL 1,379,299,000.00 and 167,272 trades from BRL 974,556,000.00 and 126,156 in July.

* Direct access to the BM&FBOVESPA market segments is carried out through DMA models 1, 2, 3 and 4. In model 1 or traditional DMA, the client accesses the GTS or Mega Bolsa through technological intermediation of a brokerage house. In model 2 or via DMA provider, the client does not use the technological intermediation of a brokerage house, but rather connects to the system through an authorized access provider. DMA via order routing with CME Globex is also a form of DMA model 2. In model 3, the client connects to the system through a direct connection. In model 4 or via co-location, the client installs its own computer within the Exchange’s facilities.

Notes:

The volumes registered by access modality include both buy and sell sides of a trade.

The volumes by access modality for both the BM&F and the BOVESPA market segments have been reported in a consolidated manner in the BM&FBOVESPA statements since May 2009.

MARKET RESULTS

BM&F Segment August 2011

Derivatives markets in the BM&F segment (including financial and commodities derivatives) totaled 78,606,873 contracts and BRL 5.23 trillion in volume in August, compared to 44,199,125 contracts and BRL 3.35 trillion in July. The daily average of contracts traded in the derivatives markets in August was 3,417,690, in contrast to 2,104,720 in July. Open interest contracts ended the last trading day of August with 37,821,302 positions, compared to 30,716,596 in July.

BOVESPA Segment August 2011

In August 2011, the equity markets (BOVESPA segment) financial volume totaled a record BRL 177.906 billion, in a record 16,234,673 trades, with daily averages of BRL 7.73 billion and a record 705,855 trades. This was in comparison to the prior total volume record of BRL 155.55 billion in October 2010, the prior total trades record of 11,172,707 in May 2011 and the prior daily average trades record of 544,88 in February 2011.

Source:BM&FBOVESPA, 20.09.2011

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Filed under: BM&FBOVESPA, Brazil, FIX Connectivity, News, Trading Technology, , , , , , , , , , , , , , , , , , , , ,

BM&FBOVESPA announces strategic and commercial partnership with the NASDAQ-OMX Group

The Brazilian Securities, Commodities and Futures Exchange announced, on 28 December 2009, that it has established a strategic and commercial partnership with the NASDAQ-OMX group. The agreement includes the development of an order routing system between participating brokers located in the U.S. and brokers located in Brazil.

This service will enable order routing of American and Brazilian cash equities for execution in the respective domestic marketplaces. Due to regulatory reasons, the aforementioned system will be developed autonomously and independently by NASDAQ OMX, through a technology subsidiary, and will be launched only after any required authorizations are granted by the respective regulatory authorities of Brazil and the U.S.

In addition to the order routing system, the partnership also encompasses the global distribution of NASDAQ OMX and BM&FBOVESPA market data and the provisioning of NASDAQ OMX products and corporate services to public companies in Brazil.

Click here to read the full version of the Material Fact.

Source: BM&FBOVESPA, 06.01.2009

Filed under: BM&FBOVESPA, Brazil, Data Management, Exchanges, Latin America, Market Data, News, , , , , , , , , ,

NASDAQ OMX and BM&FBOVESPA Agree on Terms for a Commercial Partnership

The NASDAQ OMX Group, Inc. (Nasdaq:NDAQ) and BM&FBOVESPA announced today that the two companies have entered into non-binding memoranda of understanding on terms for a commercial partnership including trade order routing, distribution of products and services for public companies, and global distribution of market data. Additionally, NASDAQ OMX and BM&F BOVESPA will continue discussions around cooperation on technology opportunities.

The parties have extended their current exclusivity agreement until December 31, 2009 in order to facilitate the negotiation of definitive agreements for the partnership.

The current partnership is comprised of the following:

  • Development of an order routing system between the United States and Brazil, through which U.S. brokers connected to the system can enter orders to buy and sell stocks traded in the BM&FBOVESPA MegaBolsa system via introduction of a Brazilian broker, and for Brazilian brokers connected to the system to enter orders to buy and sell stocks traded in the NASDAQ Stock Market via introduction of a U.S. broker;
  • Development of a commercial agreement for NASDAQ OMX to perform non-exclusive, international electronic distribution of market data related to the prices of stocks and financial assets traded on BM&FBOVESPA markets, and for the latter to perform non-exclusive distribution of market data related to the prices of stocks and financial assets traded on NASDAQ OMX markets,
  • Development of a commercial agreement for BM&FBOVESPA to offer to Brazilian public companies products and services developed by NASDAQ OMX for support and facilitation of activities performed by these companies, including investor relations activities, structuring and assistance to boards of directors, communications with the market and market analysts.
  • Discussions continue regarding opportunities for cooperation in technology.
  • Source: BM&FBOVESPA, 26.10.2009

     

    Filed under: BM&FBOVESPA, Brazil, Data Management, Data Vendor, Exchanges, Latin America, Market Data, News, Trading Technology, , , , , , , , , ,

    BM&FBOVESPA and NASDAQ-OMX on Connectivity Talks

    BM&FBOVESPA S.A., subject to the provisions of paragraph 4 of article 157 of Law number
    6404/1976 and of CVM Instruction 358/2002, hereby inform that:

    (i) BM&FBOVESPA and NASDAQ OMX Group will initiate discussions, on an exclusive basis, with the
    purpose of establishing a possible strategic, commercial and technological partnership.
    (ii) The exclusivity shall be in effect through the next sixty (60) day period, during which BM&FBOVESPA
    shall not enter into similar negotiations with any other stock exchange located in the US, and NASDAQ
    OMX shall not enter into similar negotiations with any other exchange located in South or Central
    America.
    (iii) The possible partnership may comprise the following services/products:
    a. The development of an order routing system between the exchanges in order to allow
    international investors connected to NASDAQ OMX trading platform to send buy and sell orders
    for stocks traded in the BM&FBOVESPA system (MegaBolsa), and Brazilian investors connected to
    BM&FBOVESPA trading platform to send buy and sell orders for stocks traded in NASDAQ OMX
    system in US;
    b. The development of a commercial agreement providing for BM&FBOVESPA to offer, to publicly
    traded Brazilian companies, products and services developed by NASDAQ OMX, which are
    designed to support and facilitate the activities of publicly traded companies, such as those
    related to investors relations (IR), structuring and management of board of directors, issuance of
    press-releases and communications to the market and analysts, among others;
    c. The development of a commercial agreement providing for NASDAQ OMX to distribute
    internationally, on a non exclusive basis, the prices of the securities (market data) traded in
    BM&FBOVESPA, and for BM&FBOVESPA to distribute, on a non exclusive basis, the prices of the
    securities traded in NASDAQ OMX; and
    d. The evaluation of technology cooperation opportunities for the two exchanges.
    (iv) There is no guarantee that any agreement shall be reached from these discussions. Furthermore,
    neither the confi guration of any joint initiative, nor the regulatory and economic and fi nancial base
    of the possible partnership have yet been established;
    (v) Given the preliminary stage of the discussions, the two companies have decided to present any further
    information about the negotiation only after the end of the sixty (60) day period counting from
    the date of this notice, except for the occurrence of any facts or resolutions that could constitute a
    material fact.

    Source: BM&FBOVESPA São Paulo, August 26, 2009

    Filed under: BM&FBOVESPA, Brazil, Exchanges, News, Trading Technology, , , , , , , ,

    Nasdaq OMX ‘closes’ India liaison office

    Nasdaq OMX, the transatlantic exchange, has closed its liaison office in India, people familiar with the matter have said. The move comes after failing to list any Indian company on its New York-based exchange since it set up a presence in Bangalore, the country’s information technology hub, in 2001.

    One of India’s most senior IT executives, who asked not to be named, said: “Nasdaq has done a lot in terms of educating companies in India but it has been very difficult for them to list companies on their US exchange and therefore it made no sense to keep an office open here”.

    Indian IT companies, which contribute to about 25 per cent of the country’s total exports, generating $46.3bn (€32.7bn £27.7bn) in revenues last year, have boomed in the last 10 years providing vital software and back-office services to US and European multinationals.

    Nasdaq has been competing aggressively for global listings. However, Kiran Karnik, former president of Nasscom, the Indian software trade body, said the global financial crisis and high regulatory costs in the US had been strong deterrents for Indian groups looking at the US.

    He said: “The regulatory environment in the US was perceived [by Indians] as being very high in terms of compliance costs,”.

    “I know some companies – that I wouldn’t want to name – who were looking at US alternatives but then decided to list on the London Stock Exchange.”

    Ghanshyam Dass, who was appointed Nasdaq OMX’s director for South Asia in 2001, based at the Bangalore liaison office, said he resigned in March this year. He was not replaced locally.

    Richard Dour, Nasdaq’s general manager for south Asia, is based outside India. The US exchange group has denied closing its liaison office in Bangalore.

    Nasdaq OMX officials in New York, said last week: “Nasdaq OMX has not closed its representative office in India. In fact, Nasdaq OMX’s presence in India is increasing, with multiple representatives serving the region.”

    The official added later: “We do not have, nor have we ever had, a physical office in Bangalore – it has always been individual representatives.”

    However, in 2001, Nasdaq said in a statement on the company’s website that it had opened an office in Bangalore to service Indian companies. S.M. Krishna, Indian foreign minister and former chief minister of Karnataka, the south Indian state where Bangalore is situated, inaugurated Nasdaq’s liaison office in 2001.

    In the eight years Nasdaq was present on the ground, no Indian company was listed on its stock exchange, according to Dealogic and the Nasdaq’s website.

    Exchange experts said that there were very few incentives and many regulatory bottle necks for Indian companies to list in the US.

    “Indian companies have found cheaper options in raising debt [through] instruments like foreign currency convertible bonds,” said an executive from a local Mumbai-based exchange.

    Source: FT, 02.08.2009 by By James Fontanella-Khan and Varun Sood in Mumbai

    Filed under: Asia, Exchanges, India, News, , , , , , , , ,

    Tokyo Commodity Exchange Launches Trading System from NASDAQ OMX

    Tokyo Commodity Exchange Inc. (TOCOM) announced that TOCOM has gone live with a new trading system based on the trading and clearing platforms provided by The NASDAQ OMX Group. TOCOM is NASDAQ OMX’s first Japanese customer to operate one of its systems. NTT Data Corporation made a significant contribution to this project as a system integrator.

    Source: TOCOM, 11.05.2009

    Filed under: Exchanges, FIX Connectivity, Japan, Trading Technology, , , , , , ,

    SGX to offer faster access to its securities market and data

    Singapore Exchange Limited (SGX) is pleased to announce today that it will be launching a new access platform to its securities market and data.

    The new access platform, SGXAccess API1, will offer latency improvements of more than 10 times, achieving up to an average of 16 milliseconds for order acknowledgments. It will be an alternative to the existing SGXAccess FIX2 solution, which will continue to be offered. SGXAccess API utilises OMNet API, the native protocol of SGX’s Quest-ST securities trading engine.

    In conjunction with the new access platform, SGX will also be launching a new service called Securities Market Direct Feed, which information vendors can leverage for algorithmic trading. These vendors will be able to connect directly to SGX’s securities trading engine for delivery of market data that is up to 60% faster than the current SecuritiesBook feed, which continues to be available. The new SGX Securities Market Direct Feed will also show the full list of transactions and market depth of orders in the engine.
    Both services are scheduled for launch on 27 April 2009.

    “This new access platform and data feed will cater to the needs of all participants who want faster access to our securities market and data, including our growing community of algorithmic traders. SGXAccess API will be offered at a more competitive pricing structure. This is part of our commitment to meeting the expectations of our customers,” said Mr Gan Seow Ann, Senior Executive Vice President and Head of Markets at SGX.

    This is the latest of SGX’s initiatives that benefit high-velocity and algorithmic traders. In May 2008, SGX launched its Proximity Hosting Service to provide traders with ultra low latency access to its securities and derivatives markets – making it the first exchange in Asia to offer sub-millisecond network access to its trading engines. This service allows SGX Members and their customers access to SGX’s trading engines more than four times faster than the normal speed.

    SGX also upgraded its securities and derivatives trading engines in July and December 2008 respectively, offering increased capacity and trading functionalities. This was followed by an agreement between SGX and NASDAQ OMX last month to study a migration plan to GENIUM, NASDAQ OMX’s next generation platform offering ultra low latency and world leading performance.

    Source: SGX 07.04.2009

    Filed under: Asia, Corporate Action, Data Management, Data Vendor, Exchanges, Market Data, News, Reference Data, Singapore, Trading Technology, , , , , , , , , ,

    Guotai to develop QQQ replica with Nasdaq

    Nasdaq is introducing one of the most heavily traded ETFs in the world to Chinese institutional and retail investors. Powershares QQQ, one of the most heavily traded exchange-traded funds (ETFs) in the world based on the Nasdaq 100 index, will soon find a replica in China especially targeted at institutional and retail investors looking for cheap access in the QDII niche.

    Guotai Asset Management says it has signed an official deal with Nasdaq OMX. The deal will allow Guotai to work exclusively with Nasdaq OMX in developing the fund house’s first QDII product based on the Nasdaq 100 index. With the product application already submitted to the China Securities Regulatory Commission, Guotai’s lovechild with Nasdaq OMX will likely surpass China Southern Fund Management’s planned QDII with Standard & Poor’s in becoming the first passive QDII in China.

    The announcement comes after a frustrating year of shopping for a H-share deal in Hong Kong by Shelly Yang, vice-director in charge of international business at Guotai. Yang was last spotted ringing the opening bells for Nasdaq on Thursday, March 26 in New York with Guotai CEO Xu Jin.

    The fund house anticipates, pending final regulatory approval, that the product will be ready in six to nine months time.

    Cao Dongjie, former chief marketing officer at Guotai who now heads up the company’s operations in Shanghai, says the deal is strictly between Guotai and Nasdaq OMX for now. Invesco, the current fund sponsor to the Powershares QQQ ETF in the US, is not in any way involved, he says.

    The fund house will announce further details on the fund’s market making mechanism and custodian arrangements at a later date, once these deals are final.

    The original QQQ was first launched in March 10, 1999 by Nasdaq OMX and then transferred to Invesco Powershares on March 21, 2007. Invesco has recently celebrated the tenth anniversary of the portfolio. At the height of its popularity in 2004, the fund boasted $21 billion under management. As of the end of 2008, according to Invesco’s disclosures, total assets under management for its combined portfolio of Powershares products equalled $9.15 billion.

    Since inception, the fund is down 5.11%, compared to a 4.90% drop by the Nasdaq 100 index. (The S&P 500 is down by 1.89% over the same period.)

    In the dot-com era, the fund was seen by investors as a proxy to liquidity for technology stocks. Now the fund has such a diverse holding of US listed stocks that most analysts find it hard to classify the fund.

    As of March 27, the fund had 66.8% of its assets in large-cap growth stocks, 8.69% in large-cap value, 20.85% in mid-cap growth and 3.66% in mid-cap value.

    The fund has a 12.84% exposure to consumer discretionary, 1.25% to consumer staples, 18.42% to healthcare, 5.27% to industrials, 61.09% to information technology, 0.56% to materials, and 0.57% to telecom services.

    Its top holdings include: Apple Inc at 11.82%; Qualcomm 6.90%; Microsoft 4.94%; Google 4.52%; Gilead Sciences 3.54%; Oracle Corp 3.37%; Cisco Systems 3.15%; Teva Pharmaceutical 2.88%; Intel Corp, 2.67%; and Research in Motion 2.27%.

    Source:AsianInvestor, 31.03.2009 by Liz Mark

    Filed under: China, Exchanges, Trading Technology, , , , , , , ,

    Colombian Exchange BVC Launches New Equities Market Based On NASDAQ OMX Technology

    NASDAQ OMX Group and the Colombian Exchange, Bolsa de Valores de Colombia (BVC), today reported the successful launch of a new cash equities trading system at BVC.

    The launch took place on February 9th and received immediate acknowledgement from BVC members and the investing public.

    BVC’s new system from NASDAQ OMX marks an important milestone in BVC’s goal to become a leading exchange in South America.

    The system delivered to BVC offers a high-volume, low-latency platform, and is built to support the fast introduction of new trading products and services. It also enables high capacity limits to meet the needs of algorithmic and high-velocity traders. In addition to the equities system launched yesterday, BVC in 2008 deployed a system from NASDAQ OMX for derivatives trading.

    “Through our new equities system we are in a great position to grow business at our exchange and thus reach our 2015 goal of 200 new companies and 1.5 million of Colombian families investing in our market,” said Juan Pablo Cordoba, President at BVC. “By being able to offer a world-class trading platform, we have an opportunity to contribute to a well-functioning Colombian financial market that encourages increased household investing in cash equities.”

    “It is extremely rewarding to complete the second part of our deployment at BVC,” said Lars Ottersgard, Head of Market Technology at NASDAQ OMX. “BVC now has a trading system for both equities and derivatives based on internationally recognized standards, putting them at the forefront of South American exchanges.”

    Source: MondoVisione, 10.09.2009

    Filed under: Colombia, Exchanges, News, Trading Technology, , , , , , , , , ,

    MetaBit offers low latency FIX connectivity for TSE’s Remote Trading Participants – メタビット、東証「リモート取引参加者」へ高速FIX接続を提供

    Tokyo, 12 November 2008 – MetaBit confirms its high performance, low latency FIX exchange connectivity solution is suitable for Tokyo Stock Exchange (TSE)’s recently announced co-location services for offshore trading firms, that will request direct participation in Japan’s largest exchange. メタビットは自社のローレインテンシー、ハイパフォーマンス取引所FIX接続ソリューションが東京証券取引所(東証)のオフショアトレーディング機関のためのコロケーションサービス向けに新たに提供開始されたと発表しました。これにより海外の機関は日本最大の売買高を誇る取引所に直接参加できるようになります。

    Since 2003, MetaBit has actively deployed its pure FIX-to-native exchange connectivity for high performance trading access to Japan’s exchanges, including the commodity exchange.  The architecture of MetaBit’s technology is based on the world’s leading Orc CameronFIX engine.  Today, securities companies select MetaBit’s FIX-to-native exchange connectivity solution for its standardised FIX API that combines high performance and low latency, with cost efficient support.

    “On 30 September 2008, TSE announced its plans for “Remote Trading Participant Services” that will allow offshore firms with no branch in Japan, direct market participation.  This will facilitate increased liquidity for Japan’s markets,” explains John Edwards, MetaBit CTO.  “Our company’s FIX exchange connectivity to TSE represents a particularly convenient solution for such trading firms.  The product, branded “Alpha,” allows easy trading access through a standardized FIX interface that rationalizes TSE’s native API whilst achieving consistently high performance combined with low latency.  MetaBit’s FIX solution can be deployed in the announced co-location services at TSE, at other data centers, or at a Japan broker member’s site.”

    * Performance of MetaBit’s FIX to native exchange connectivity Alpha product, has been independently measured to provide throughput above 3,000 messages per second and average latency below 2 millisecond per order at a sustained through-put of 800 orders per second1. * アルファは秒速3,000メッセージ以上、1オーダーのレイテンシーは2ミリ秒以下、1秒800オーダーを常時処理するというパフォーマンス数値を残しています※1。

    “Japan’s exchanges have often believed FIX to be slow,” continues Edwards, “but MetaBit’s FIX exchange solution has a proven track record since 2003, and has successfully demonstrated that FIX is capable of high performance and low latency.  TSE’s native API is often difficult for non-Japanese firms to build connectivity to, and ongoing support becomes particularly time consuming due to ongoing changes to the API.  To have built a standardised FIX API removes all such concerns for our clients, and delivers trading access to TSE in a format that is very familiar to all firms deploying FIX.”

    Today, MetaBit’s FIX exchange connectivity clients consist of broker members varying from Japanese domestic players, to global brokerage firms that trade multi-asset classes on all of Japan’s major exchanges ranging from cash equities, index futures and options, CBs to commodity futures. 今日、メタビットのFIX取引所接続ソリューションは国内のブローカー及び、日本の全ての主要取引所で取引される株式、指数先物・オプション、CB、商品先物を含めマルチアセットクラスに対応したグローバルなブローカーが導入しております。

    ——————————————-
    * 1Performance measured on the following hardware: HP Proliant DL385, 2x Dual Core AMD 2Ghz, RHEL4 Update 2, 64-bit. * 1パフォーマンスは次のハードで測定: HP Proliant DL385, 2x Dual Core AMD 2Ghz, RHEL4 Update 2, 64-bit.

    About MetaBit
    MetaBit is the provider of the MLH (Market Liquidity Hub), an Asian broker portal that offers Direct Market Access (DMA) to 34 brokers and access to ten exchanges through its intuitive buy side trading tool XiliX.  The MLH is also accessible through the FIX Protocol, and provides access to more than 1,800 execution destinations worldwide in conjunction with MetaBit’s FIX partner networks.  MetaBit is the only provider of pure FIX to native exchange connectivity to TSE, OSE, JASDAQ and TOCOM that focus on sustained high performance and low latency.  Other products include Exchange Message Simulators to Japan’s major stock exchanges, and FIX testing and certification products.  MetaBit actively promotes FIX throughout Asia.

    Partners include leading network provider BT Radianz, number one FIX connectivity solution provider Orc Software, renowned FIX testing and certification system provider Greenline Financial Technologies, and the world’s largest exchange provider NASDAQ OMX.

    For more information please visit http://www.meta-bit.com <http://www.meta-bit.com/&gt;
    Media Contacts, Koiji Ito, +81 3 3664 4160, sales@meta-bit.com

    Source:Meta-Bit,12.11.2008

    Filed under: Australia, Exchanges, FIX Connectivity, Japan, News, Trading Technology, , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,

    Pan-European Platforms Form Symbology Working Group

    Chi-X Europe, Nasdaq OMX Europe and BATS European Markets Division have formed a working group to create a uniform symbology for European equities. The three companies said today that the initiative will allow market data to be more easily consolidated across trading venues and facilitate smart-order routing.

    “A common symbology will ease navigation between market centers and ultimately provide a better experience to investors,” said Todd Golub, head of markets development at Nasdaq OMX Europe, in a statement. “This move will also reduce the back-office complexities” related to the European Union’s Markets in Financial Instruments Directive (MiFID), which went into effect about a year ago. Nasdaq OMX Group’s multilateral trading facility (MTF) began limited operations Sept. 26.

    “Customers will now only need to manage one common list” of symbols, Golub added in an interview. “It will also drive down the cost of trading in Europe and help liquidity move from the primary exchanges.” Participation in the effort is open to all European venues–both exchanges and MTFs–said the companies.

    Source: Securities Industry News, 22.10.08

    Filed under: Data Management, Exchanges, Market Data, News, Reference Data, Standards, , , , , , , , , , , ,

    Asia: Commodities Call On Technology

    In a bid to attract investors, Asia’s new commodities exchanges are turning to technology providers for low-latency solutions and improved connectivity.
    Within weeks of each other, plans for two new Asian commodities exchanges were revealed with much fanfare early this summer. Fully electronic markets are expected to open within the next nine months in Singapore and Hong Kong, and industry observers note that this signals a growing appetite for technology in Asia’s commodities exchanges.

    While the two exchanges are still awaiting regulatory approval, commodities exchanges across the region have been improving connectivity and reducing latency in the last 12 months, and opportunities are increasing for investors looking to trade across a number of asset classes. Newcomers like Hong Kong and Singapore are hoping that easy and reliable access will help attract those investors to their fledgling exchanges. Building liquidity, however, could be an uphill battle.

    “The popularity of commodities as an investment allocation opens up a broad opportunity for exchanges focusing on those types of instruments,” says Andy Nybo, a senior analyst at Westborough, Mass.-based research firm Tabb Group. Building liquidity is a long process, he says, combining demand for the products as well as incentives to trade them on a centralized exchange.

    “These incentives cover a broad spectrum of categories,” Nybo says. “They can include financial incentives that lower the cost of trading, technology and systems that make the trading process more efficient, or access to new products and strategies that better meet the needs of the trading community.”

    Growing Demand
    Markus Gerdien, executive vice president of market technology at Nasdaq OMX, has had a front-row seat to the growing trend in Asia. In addition to the Hong Kong Exchange, Nasdaq OMX is providing technology to the planned Australian Financial and Energy Exchange, set to start trading before the end of the year.

    The trend, Gerdien says, is driven by a combination of pressure from international brokerages and home-grown interest in more modern exchanges. Worldwide capital is now shifting quickly from one area to another, leading investors that may have previously specialized in one asset class to diversify. “Equity trading is a little bit challenged globally,” Gerdien says. “But commodities trading is booming, so capital is shifting quickly.”

    Asia is a natural place for the capital to flow, as the region’s demand for commodities continues to grow rapidly. Local demand has also driven local interest in the exchanges. “I think local economies, in previous times, had a shortage of cash or a shortage of workforce,” Gerdien says. Today, however, local economies are more robust and able to create a fair amount of liquidity on their own.

    Interest in commodities is coupled with the increasing automation of brokerages looking to trade on Asia’s commodities exchanges. The demand is both local and international. “I think all the international brokers have deployed [algorithmic strategies] for their trading, and the technology is becoming more and more available for local brokers and dealers,” Gerdien says. “The exchange itself needs to deal with an automated order flow that can be very high.”

    The interest in commodities has galvanized a number of startups and increasing automation has led existing exchanges to re-examine their business models and trading platforms.

    Opportunities On The Rise

    The options for Asia’s new commodities exchanges today, argues White, are much wider than they were even 10 years ago. “The technology wasn’t in place to connect,” he says. “There needed to be separate order management systems, which make it difficult to trade into different exchanges.”

    Now, traders can maintain their ties to larger, Western exchanges, while finding arbitrage opportunities across the globe.

    “Connectivity and access are important for any exchange but there also needs to be latent demand for the products being traded,” Nybo says.

    OMX’s Gerdien says that not every new exchange will prosper, but it is worth taking the risk to help support new ventures. He points to OMX’s success with the International Securities Exchange (ISE) as an example. “When they started six or seven years ago, they were three guys in a garage. We took a risk and provided them with our technology.”

    Today, the ISE is a wholly owned subsidiary of Eurex and together they lead the world in individual equity and equity index derivatives.

    Asia is offering opportunities to vendors that could be as promising as the ISE-OMX deal. With a number of new brokerages and exchanges to service, vendors in the region are feeling upbeat about the possibilities.

    For full article click here

    Source: Watersonline, By Lauren Hilgers, 01.09.2008

    Filed under: Asia, Australia, Energy & Environment, Exchanges, Hong Kong, Japan, News, Singapore, Trading Technology, , , , , , , , , , , , ,

    BVC: Colombia Exchange Starts Derivatives to Boost Trading

    Update 04.09.08: The Colombian Exchange Launches New Derivatives Market Based On NASDAQ OMX Technology
    The NASDAQ OMX Group, Inc. (Nasdaq:NDAQ) and the Colombian Exchange — Bolsa de Valores de Colombia (BVC) — achieved a significant milestone this week with the launch of BVC’s new market for derivatives, based on a trading engine provided by NASDAQ OMX. The new trading platform, which later this year will also encompass cash equities, is part of BVC’s ongoing initiative to grow its position in the South American exchange market.

    “This successful launch is a critical step in enhancing our offer to both South American and international investor communities,” said Juan Pablo Cordoba, President BVC. “Implementation of NASDAQ OMX’s trading engine allows both retail and institutional investors to execute orders more securely and efficiently. In addition, the system provides scalability for future volume increases, as well as the flexibility to quickly introduce new products.”

    The system that NASDAQ OMX delivers to BVC offers a high-speed, low-latency platform, and is designed to support fast introduction of new trading products and services. It also enables high capacity limits to meet the needs of algorithmic and high-velocity traders.

    “This launch truly symbolizes BVC’s commitment to become a leading exchange in South America,” said Markus Gerdien, Executive Vice President NASDAQ OMX Market Technology. “BVC has invested in a world-class, state-of-the-art solution that will align them with international standards and put them in a prime position to grow liquidity and attract international capital.”

    Bloomberg | 01.09.2008 Derivatives Trading article, Lifting of Depository Restriction

    Colombia started trading its first derivatives instrument today as Latin American exchanges seek to lure more investors and boost trading.

    Juan Pablo Cordoba, chairman of Colombia’s exchange known as BVC, and chief securities regulator Cesar Prado started the first session of bond futures trading in a ceremony in Bogota. BVC plans to allow stock and currency futures and options by yearend.

    “This is a historic day for Colombian capital markets and for the wider economy,” Prado said in a speech at the ceremony. “The introduction of this market is going to contribute to improved risk distribution in the economy.”

    Latin American exchanges are developing derivatives trading to allow investors to hedge risks or speculate on the underlying asset. Brazil’s derivatives exchange merged with the nation’s stock exchange this year. Chile is drawing up derivatives guidelines as part of a planned capital markets developments unveiled by Finance Minister Andres Velasco last month.

    In May, BVC signed an agreement with XM Co. de Expertos en Mercados SA ESP, operator of Colombia’s electricity grid, to create Latin America’s first electricity derivatives market.

    Colombia’s first derivatives instrument is a five-year futures contract derived from the country’s benchmark peso bond, known as TES.

    Filed under: News, , , , , , , , , , ,

    FIX: Gateway to India

    Capital markets boom

    Thanks to this increasingly sophisticated financial workforce, as well as a generally liberal regulatory policy over the last few years, the Indian capital markets are maturing rapidly. Although the equities market is currently lagging as a result of the global economic downturn combined with high inflation-a recent Financial Times article rates India’s equities market as the worst performing for a large emerging market-derivatives trading is now big business. India has one of the largest single stock futures markets in the world-just four years after it was introduced. A new power exchange was recently launched and a formal mechanism for trading currency futures was expected to be up and running by the beginning of this month.

    Foreign participation in Indian markets has grown steadily over several years and shows no signs of abating, and regulatory changes mean that domestic brokerage firms are starting to enjoy a larger slice of the business. In the past, foreign buy-side participants that wanted to trade securities in India had to do so via participatory notes-also known as P-notes-which were mostly distributed by international tier-one brokers, who would buy and sell shares on behalf of the foreign player. Typically, international buy-side firms went with international brokers that had offices in Mumbai, and the local brokers didn’t see much benefit from the foreign investment in their country, says Nelson Cheng, business development manager for the Asia-Pacific region at trading systems provider Fidessa.

    However, this dynamic is changing. Foreign firms wanting to participate in the Indian market must now register as Foreign Institutional Investors (FIIs), and this has opened up a lot of opportunity for local brokers, according to Cheng. “Once you qualify as an FII you can go to local brokers as well as international brokers to get access to the market,” he says.

    Indian brokers need FIX connectivity to attract international order flow and many have made significant investments in FIX networks and order management systems (OMSes). Financial Technologies (FT), an Indian trading and exchange technology provider, saw 95 percent year-on-year growth in the number of trading licenses for its Odin OMS, from 164,000 in March 2007 to over 320,000 in March 2008.

    Surprise DMA Introduction
    This year, new regulatory changes are opening up the markets even more for foreign participation. The Securities and Exchange Board of India (SEBI) announced in April that it would allow the introduction of direct market access (DMA) for equities, futures and options, and about a dozen brokerages in India launched this service with a few clients this summer. Vendors are also busy-FT recently launched DMA Live!, its direct market access solution, providing international market connectivity to over 80 percent of the domestic brokerages.

    Boston-based research and analysis firm Celent estimates that between 40 and 50 brokerage firms and around 80 domestic and foreign buy-side firms will use the DMA channel by 2010.

    The possibility of DMA in India had been widely discussed, but nonetheless it came as a surprise to many market participants when the SEBI announced that DMA would be permitted from April this year. “The general consensus in the market was that DMA in its entirety would still be at least 18 months to 24 months away,” says Athul Kudva, director at Indian trading technology provider Omnesys. “If you look at January and February, the markets were booming and generally the regulators are wary of opening the doors for such things when the markets are booming,” he says. One-touch DMA, requiring manual intervention from the broker, had already been permitted for some months.

    DMA traffic accounts for 15 percent to 18 percent of total trading volumes in the US and 8 percent in Europe, and these numbers are growing fast, according to a Celent report, Impact of Direct Market Access in India, by senior analyst Sandeep Hebbar. In these developed markets, DMA adoption has helped drive down costs, provide better execution quality, better market and liquidity aggregation and better compliance with regulations, according to the report. Emerging markets regulators and participants have seen the effects that electronic and algorithmic trading have had on the developed world’s markets and are keen to reap some of the benefits for themselves.

    India is not alone-DMA is also currently being introduced in Brazil, Chile, Mexico and Columbia. This is made possible by the widespread adoption of the FIX protocol over the last two years, says David Meredith, CTO at Marco Polo. As well as providing FIX network connectivity to emerging markets, Marco Polo provides gateway technology to the exchanges themselves, enabling emerging markets participants to be up and running relatively fast. “Developed markets took a long time to adopt DMA, but because clients in those developed markets are now very used to FIX, we’re seeing very high demand in emerging markets from day one,” he says.

    Exchanges Respond
    Industry insiders expect trading volumes to surge within the next year or two as a result of DMA, and firms and exchanges are working fast to make sure their systems are ready to handle the additional traffic.

    The National Stock Exchange of India (NSE) is currently migrating from an x.25 network to a TCP/IP network in order to offer faster market data updates. The NSE does not currently distribute market data on a tick-by-tick basis, but sends snapshots of its order book to trading participants at regular intervals. “Depending on the liquidity of the securities, market data is sent every two to three seconds or even every six to seven seconds,” says Omnesys’ Kudva. The existing x.25 network distributes data at 128 kilobits per second (kbps). The new TCP/IP network, scheduled to go live on Oct. 31, will transfer information at a rate of 2 megabits per second (Mbps).

    Latency can be a major issue in India, where market data delays have been known to reach 30 minutes during trading peaks. “A couple of months ago, we had a pressure scenario on the expiration date, and the system got so jammed up that even after the close of the market we were still getting the confirmations from our trades,” says Centrum’s Shah. With such delays, traders run the risk of buying or selling securities at an inaccurate price. “The exchanges needed to improve their infrastructure completely-they have realized this and are working on it,” Shah says.

    While both types of networks are constrained by the speed of light, the new IP network will be able to process a much larger number of orders simultaneously, resulting in fewer network jams, says Frédéric Ponzo, managing director of Net2S, a Paris-headquartered capital markets technology consulting firm. Although in an IP network latency for a single order is increased because of the need for firewalls-x.25 networks do not require them-the additional bandwidth means that for a basket of 20 orders, network latency is reduced by a factor of six, Ponzo says.

    Not to be outdone, the Bombay Stock Exchange (BSE) recently announced a deal with Transaction Network Services (TNS), which will allow international brokers to participate on the exchange more easily via TNS’ secure trading extranet. Previously, access to the BSE for trading and market data was limited to participants that had set up offices in India, which were typically connected to the exchange via leased lines. The exchange hopes the new setup will reduce the number of network management issues faced by the BSE and its customers, according to exchange officials.

    Both the BSE and the NSE have seen tie-ups with overseas exchanges. BSE signed a technology agreement with Nasdaq OMX Group in January this year and NYSE Euronext bought a 5 percent stake in the NSE in March.

    The Volume Explosion
    Even before the rise of DMA, trading volumes had increased dramatically over the last few years, putting a strain on the exchanges’ existing infrastructures. Foreign participation, a growing retail segment, the dematerialization of shares, the reduction of transaction costs for some securities, the successful introduction of stock lending and borrowing as well as single stock futures and options trading have all played a role in increasing volumes, sources say. Combined daily trading volumes on the BSE, the NSE and the NSE futures and options exchanges hit a peak one-day high of $34.49 billion in October last year, up from $1.8 billion just five years ago. The current global economic downtown resulting from the sub-prime mortgage fiasco means that volumes are down-$14.5 billion on Aug. 13-but most industry participants are confident the markets will bounce back.

    for full article click here

    Source: Waters Online, By Emily Fraser, 01.09.2008

    Filed under: Asia, Brazil, Colombia, Data Management, Data Vendor, Exchanges, FIX Connectivity, Hong Kong, India, Japan, Latin America, Market Data, Mexico, News, Trading Technology, , , , , , , , , , , , , , , , , , , , , , ,

    African, Asian and European Exchanges converge on Vietnam to offer listing opportunities

    Ho Chi Minh City, May 31st – 5 exchanges join for a Listing panel to offer Vietnamese
    companies a comparative insight listings requierments and opportunities abroad.

    Tokyo Stock Exchange, Bursa Malaysia, Cairo & Alexandria Exchange, OMX Nasdaq and London Stock Exchange will come together on one stage and openly discuss their competitive advantages to attract Vietnamese companies to list on their floors.

    This rare gathering is part of the annual Asian Traders and Investor Convention in Vietnam. The event is organized by TheNextView and is expected to attract 10’000 visitors.

    As Stephen Lai CEO of TheNextView  (a Singapore based company) explained: “We have invite directors of all the local listed companies, especially those with strong business plan with viable investment projects, to come to listen to the senior representatives of overseas stock exchanges explain how they have simplified listing rules and processess for Vietnamese companies.

    This is a unique opportunity to compare the listing conditions between exchanges when they are all in the same room at the same time!

    There are many good reasons why CEOs of listed companies should consider co-listing in overseas stock exchanges, let me just name three here.

    • Co listing means you can tap more easily into world capital markets
    • It’s easier for foreigners to invest in a co-listed stock than it is to invest directly in Vietnam
    • Co-listing makes the company available to overseas retail investors rather than just fund managers

    He further added “TheNextViews mission is to connect the key stakeholders within Asia’s financial eco-system, i.e. securities exchanges, securities companies, fund managers, listed companies, and private investors, to form a powerful investment network.”

    FiNETIK Partners May 31st, 2008
    www.finetik.com

    Filed under: Events, News, , , , , , , , , , , , ,