BM&FBOVESPA authorizes new DMA modality for its derivatives segment

BM&FBOVESPA authorizes new DMA modality for its derivatives segment

o Paulo, 19 October 2009 - The Brazilian Securities, Commodities and Futures Exchange – BM&FBOVESPA will offer, starting today, a new Direct Market Access (DMA) modality connection to its GTS (Global Trading System), the Exchange’s electronic derivatives trading platform. DMA model 3 allows clients to directly access the GTS trading platform without the technological infrastructure of a brokerage house or an authorized DMA provider. As with the other available DMA trading modalities, direct access to BM&FBOVESPA and its order flow will continue to be authorized and monitored by a brokerage house.

BM&FBOVESPA DMA modalities
Direct access to the Exchange’s derivatives market segment is carried out through DMA models 1, 2, 3, and 4. In model 1 or traditional, the client accesses the GTS through the technological infrastructure of the brokerage house. In model 2 or via DMA provider, the client does not use the previously mentioned structure and connects to the system through an authorized access provider. DMA via order routing with CME Globex is also a form of DMA model 2. In model 4 or DMA via co-location, the clients install their own equipment inside the BMFBOVESPA facilities.

Equities segment DMA
Direct access to the BOVESPA market segment (equities) is carried out through DMA model 1. The Exchange is planning to launch the other DMA trading modalities for its equity segment by the end of 2009, after the authorization of the Brazilian Securities and Exchange Commission (CVM – Comissão de Valores Mobiliários).

DMA trading volumes
In September, Direct Market Access (DMA) trading of the derivatives market segment at BM&FBOVESPA represented 12.3% of the total 31,505,077 contracts traded. DMA trading of the equities market segment represented 56.1% of the total 7,143,911 trades.

BM&FBOVESPA S.A. - The Brazilian Securities, Commodities and Futures Exchange was created in 2008 with the integration between the Brazilian Mercantile & Futures Exchange (BM&F) and the São Paulo Stock Exchange (Bovespa). Together, the companies have created one of the largest listed exchange groups in the world, the second in the Americas, and the leading exchange in Latin America. The Exchange features a vertically integrated business model, with trading, registration, netting, settlement, risk management, market data, and central securities depository services. BM&FBOVESPA’s state-of-the-art technological resources provide investors with an efficient and secure trading and post-trading environment.  Among its broad range of trading products, the Brazilian Exchange offers equities, securities, financial assets, indices, interest rates, agricultural commodities, as well as foreign exchange futures and spot contracts, and acts as a central counterparty for all of its market segment through its four clearinghouses - equity, derivatives, foreign exchange, and securities. 

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