BM&FBovespa taps Cinnober for clearing overhaul

BM&FBovespa taps Cinnober for clearing overhaul

Brazilian exchange operator BM&FBovespa has licensed technology from Swedish vendor Cinnober for a major revamp of its clearing operations.

BM&FBovespa has selected Cinnober's TradeExpress RealTime technology as the basis of a multi-asset system covering equities, derivatives, government bonds and spot FX.

Cinnober says that by integrating the exchange's four clearinghouses and improving operating efficiency for market participants, it will "completely re-engineer the Brazilian post-trade landscape" and that the new system will provide a true multi-asset class approach with real-time risk calculation capabilities.

The agreement comes after a thorough proof of concept test for the technology at the exchanges data processing centre. The system will now be developed through 2012 with integrated market testing and the start of implementation slated for 2013.

Cícero Vieira Neto, chief operating, clearing and depository officer, BM&FBovespa, says: "One of the important features of this project is the Core (Close-out Risk Evaluation) system, which will permit risk netting between different classes of assets and contracts, granting users of the Exchange's clearing systems greater efficiency in the allocation of capital."

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