The Brazilian Securities, Commodities and Futures Exchange - BM&FBovespa has authorized SunGard to act as a provider of direct market access (DMA) for the BM&F segment (derivatives markets).
SunGard will offer brokerage houses and its clients an order routing system for the direct trading of financial and agricultural derivatives traded at the Exchange.
This DMA modality permits investors to directly access the Exchange's electronic trading platform, GTS, without having to transmit data through a brokerage house's network. A client connects to BM&FBOVESPA's system through its authorized provider. The connection between the investor and the Exchange, however, is monitored by a brokerage house that provides the access so as to enable it to control the customer's order flow.
SunGard is the fourth company authorized to act as a DMA provider. Since 2009, when the Exchange launched this DMA modality, Marcopolo Networks, Bloomberg Tradebook, and Cedro Market & Finances have begun offering the service. BM&FBOVESPA is also working with SunGard to develop a back-office solution for North American clients that trade agricultural and financial derivatives in Brazil. This new solution will help customers increase efficiency by automating the process of loading trades, performing bookkeeping functions, and calculating margins and fees.
Trading via DMA provider
In February 2010, trading via a DMA provider registered 3,200,086 contracts traded, in 75,421 trades. These numbers represent 4% of the total contracts traded and 3.3% of the number of trades verified during the same period. Taking into consideration the sum of the traded volume by all the DMA modalities available in the BM&F segment, including DMA via order routing with the CME Group, these numbers represent 15.9% of the total contracts traded and 65.4% of the totality of the trades carried out in the BM&F segment.