Direct Edge plans Brazilian exchange

Direct Edge plans Brazilian exchange

US electronic exchange operator Direct Edge has outlined plans to set up a Brazilian bourse based in Rio de Janeiro.

The firm is hoping to go live with the all-electronic platform for Brazilian equities trading in the fourth quarter of next year, pending regulatory approval from the Comissao de Valores Mobiliarios.

Direct Edge Brazil will operate as an independent, local company majority owned by the US firm. A Rio de Janeiro-based CEO and team will be appointed and the platform will use Direct Edge's technology and architecture "customised to the unique needs of the Brazilian market".

If approved, Direct Edge will be the first stock exchange headquartered in Rio de Janeiro since 2002, joining a market dominated by Sao Paulo-based BM&FBovespa.

Direct Edge has not provided details of its clearing plans but earlier this month BM&FBovespa revealed that it will not share its new service with other operators, providing a blow to potential new entrants, which also include another US outfit, Bats.

William O'Brien, CEO, Direct Edge, says: "The Brazilian economy is among the fastest growing in the world and we believe that a second stock exchange in the country will spur even greater investor participation through competition that drives innovation and price improvement."

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