EM News: Mexican Exchange Woos High-Frequency Traders


By Gordon Platt

The Bolsa Mexicana de Valores exchange in Mexico City says it will introduce faster trading technology by the middle of 2012 in an effort to attract more high-frequency traders.

BMV says the new multimarket, multiasset trading engine, which was developed in-house, will be able to handle more than 200,000 messages per second. Also starting in 2012, the exchange will introduce midpoint “hidden” order book trading, which it says is ideal for institutional investors looking to trade large blocks anonymously.

The second-largest exchange in Latin America following Brazil, BMV could eventually join MILA, a new exchange that aims to integrate stock trading in Chile, Colombia and Peru.

“By successfully improving upon our operative rules to better comply with international market standards, BMV is now better equipped to provide global investors with more-efficient trading and connectivity to Mexico,” says Luis Téllez, president and CEO of BMV Group. The exchange already provides direct market access, high-speed co-location services and FIX Protocol, a messaging standard, for order routing and market data.

Meanwhile, Direct Edge, a New Jersey stock exchange, says it plans to open a new electronic platform in Brazil. Direct Edge Brazil, to be based in Rio de Janeiro, is expected to launch in the fourth quarter of 2012. Earlier this year, BATS Global Markets—the US stock exchanges company, holding 11.5% US equity markets share—and Claritas, a Brazilian asset manager, announced plans to open an exchange in Brazil.