18 October 2017
Find out more

Bolsa De Mercadorias & Futuros introduces spot US Dollar e-trading

17 January 2008  |  688 views  |  0 Source: Bolsa De Mercadorias & Futuros

Bolsa De Mercadorias & Futuros-BM&F SA (BOVESPA: BMEF3) informs that, in a joint initiative with the Brazilian Federation of Banks (FEBRABAN) and the Central Bank of Brazil, BM&F will present, on January 16, 2008, the main features of the project to introduce electronic trading for the spot US Dollar market to the institutions authorized to trade in the foreign exchange market.

Currently, BM&F is responsible for the registration and settlement of about 95 of the total volume of transactions in the interbank US Dollar market (averaging around USD2.5 billion a day). These transactions can be executed on the OTC market or on the BM&F trading floor, with the former accounting approximately for 85% of the total traded volume.

BM&F believes that implementing this initiative for the trading of both the spot US Dollar and the currency-based derivatives in a single environment, guaranteed by central counterparty systems managed by the same institution, will improve efficiency and facilitate the execution of arbitrage and hedge transactions by investors, thereby contributing to the further consolidation of BM&F's dominant position in these markets.

The highlights from among the main characteristics of the new BM&F electronic trading platform and the trading of the spot US Dollar through this system, are as follows:
  • Direct access to the trading system by banks, with no mandatory intermediation, according to the Direct Market Access (DMA) model;
  • High degree of connectivity between the electronic trading platform (utilization of the FIX protocol) and the other systems utilized by investors, thereby allowing for the development of trading strategies based on computer programs (algorithmic trading);
  • Blind screen, which allows for the full anonymity of buyers and sellers when trading;
  • Automatic registration of transactions in the systems of the Central Bank of Brazil and the BM&F Foreign Exchange Clearinghouse;
  • Role of BM&F as a central counterparty responsible for the settlement of transactions through multilateral netting and the management of counterparty risk.

Trading of the spot US Dollar market on the new BM&F electronic platform will begin in the second quarter of 2008.

Comments: (0)

Comment on this story (membership required)

Related blogs

Create a blog about this story (membership required)
visit www.vasco.comRegister nowvisit www.innotribe.com

Top topics

Most viewed Most shared
Ripple looks to drive bank adoption with $300m XRP rebate programmeRipple looks to drive bank adoption with $...
15117 views comments | 12 tweets | 4 linkedin
Swift positive on blockchain, but big challenges remainSwift positive on blockchain, but big chal...
8337 views comments | 15 tweets | 21 linkedin
hands typing furiouslyHow artificial intelligence can deliver a...
7826 views 0 | 7 tweets | 9 linkedin
satelliteGates Foundation backs Ripple collaboratio...
7231 views comments | 13 tweets | 8 linkedin
IBM uses blockchain to improve cross-border payments processingIBM uses blockchain to improve cross-borde...
6395 views comments | 8 tweets | 16 linkedin

Featured job

Competitive base + commission + benefits
Denmark, Finland, Iceland, Norway or Sweden

Find your next job