Nasdaq (NDAQ) and Bolsa Institucional de Valores (BIVA), announced today that BIVA will implement Nasdaq's X-stream Trading technology to run Latin America's newest exchange.
X-stream is the most widely used exchange trading technology in the world, powering more than 30 marketplaces globally. In addition, BIVA will also operate SMARTS for surveillance efforts to increase transparency and maintain market integrity.
"We see this new partnership with Nasdaq as a crucial part of successfully launching BIVA and giving Mexico's financial sector the boost of liquidity and world-class technological infrastructure it absolutely deserves," said Fernando Perez Saldivar, CEO, BIVA. "Mexico has the potential to become one of the world's top ten economies. By becoming the second exchange in the country, BIVA is keen to support our country in achieving this goal. And working with Nasdaq only underscores our commitment to making this happen."
According to Central de Corretajes (CENCOR), the holding company backing BIVA, the new exchange initiative, which is currently seeking final approval from Mexico's Ministry of Finance (SHCP), falls in line with the financial reform recently approved by the Mexican Government. The benefits of a new stock exchange include technological innovation, market continuity, increased liquidity, lower execution costs, trading alternatives and attraction of new IPOs. Further, every single security currently traded in Mexico will be tradable on BIVA, day one. And new and existing issuers will have the option to choose the exchange where they prefer to have their primary listing.
"We are proud and excited to be supporting BIVA as they plan to become Mexico's next exchange," said Lars Ottersgard, Executive Vice President and Head of Market Technology, Nasdaq. "Nasdaq has always been a proponent of marketplace diversification and increasing sources of liquidity, which benefits investors and market participants alike, as well risk mitigation requirements driven by the regulators. Operating our market technology will give BIVA the international credibility and join a long list of the world's most powerful exchanges running on Nasdaq systems."
Nasdaq's exchange technology, including trading, clearing, CSD and market surveillance systems, is in operation in over 100 marketplaces across North and Latin America, Europe, Asia, Australia, Africa and the Middle East.