The Nasdaq OMX Group (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.