Chi-X Global, a provider of market infrastructure technologies and trading venues and subsidiary of Instinet, has entered into partnership with Brazil-based Bm&fBovespa, Bolsa de Valores, Mercadorias e Futuros (BVMF) to form a new service that leverages Chi-X Global’s Chi-FX product in the Brazilian market.
Chi-FX Brazil will distribute streaming quotations for BVMF equities to foreign investors in their offshore base currency by using executable foreign exchange (FX) rates provided by FX liquidity providers.
Chi-FX Brazil will also allow foreign investors to enter orders with limit prices in their base currency and facilitate the simultaneous paired execution of the equity and forex legs of the transaction.
Through this partnership, Chi-X Global will develop and help support the platform, and BVMF will market the service to its participants and provide facilities, expertise and front line customer support.
Chi-X Global and BVMF have signed a memorandum of understanding to begin development on the project, and plan to start implementation later this year.
Tal Cohen, CEO of the Americas for Chi-X Global, said: “We are very pleased to work with one of the world’s premiere exchanges on this new product, which will help international investors reduce their intraday risk when accessing the Brazilian equities market, ultimately increasing overall liquidity in the market.”
Marta Alves, chief product development officer for Bm&fBovespa, said: “We are very pleased to work with Chi-X Global, one of the world’s leading providers of market infrastructure technology, to facilitate the execution of the simultaneous FX transaction when foreign investors are buying and/or selling stocks in Brazil. This tool, to be developed by Chi-X Global, will help foreign investors and their brokers to deepen their relationship with the Brazilian stock market.”