Brazilian exchange BM&FBovespa will go live with a new trading platform in the spot foreign exchange market on Monday 29 August. The multi-asset class trading system, called the Puma Trading System, has been developed in partnership with CME Group.
Over a three stage process Puma will replace Global Trading System (GTS), Mega Bolsa, Bovespa FIX and Sisbex, combining them into a system with greater processing capacity and ultra low latency that will allow traders to buy and sell foreign currency, commodities, equities and other financial assets in one place.
According to Edemir Pinto, BM&FBovespa’s president, the exchange plans to migrate all assets traded at the bourse to the new platform by the end of 2012. The initiative, combined with the merger of BM&FBovespa’s own risk-assessment platforms, will generate margin savings of between 25 and 40%, he said at the exchange’s derivatives conference in Campos do Jordão, Brazil last week.
Initially beginning with the transferal of spot foreign exchange contracts, the exchange will move on to agricultural derivatives, financial derivatives and derivatives based on stock indices.
BM&FBovespa reached an agreement with CME Group to jointly develop the new trading platform in February last year (Squawkbox, 15 February, 2010).
As a result of a stock swap that took place in early 2008, the Chicago exchange owns a 5% stake in BM&FBovespa, and the São Paulo exchange has a 5% stake in CME Group.