BM&FBOVESPA and SunGard developing clearing and margin support for US futures commission merchants

BM&FBOVESPA and SunGard developing clearing and margin support for US futures commission merchants

05/01/10

The Securities, Commodities and Futures Exchange - BM&FBOVESPA is working with SunGard to expand the automated clearing support for BM&FBOVESPA’s financial and agricultural futures and options exchange-traded derivatives within SunGard’s GMI clearing and accounting solution. SunGard’s collaboration with BM&FBOVESPA will provide US-based FCMs with the ability to process and clear BM&FBOVESPA trades using GMI, as well as establish direct BM&FBOVESPA clearing member connectivity with SunGard’s post-trade solutions. Occurring after the Commodity Futures Trading Commission (CFTC) approved the trading by US resident investors of BM&FBOVESPA derivatives based on the Ibovespa, the most representative index of the Brazilian equities market, this initiative will also help to increase trading on a global scale.

GMI’s new BM&FBOVESPA derivatives module will be available in the second quarter of 2010 to help customers automate the process of loading trades, performing bookkeeping functions, and calculating margins and fees. GMI’s trade load functionality will help US futures commission merchants (FCMs) to seamlessly import cleared trades from Brazil directly into their GMI systems. GMI will also provide customers with BM&FBOVESPA initial and variation margin calculations to help firms monitor daily charges and fees, and reconcile information. In addition, SunGard will develop a smart gateway to BM&FBOVESPA in order to provide clearing members with automated uploads of transactions directly into either GMI or SunGard’s GL Ubix real-time back-office system for listed derivatives.