High Frequency Trading in Latin America: Brazil Blazes the Way
Report Summary
High Frequency Trading in Latin America: Brazil Blazes the Way
Early effects of technological investment efforts can be seen in increased high frequency participation.
Boston, October 26, 2011 – A new report from Aite Group considers the future of high frequency trading in Latin America, and studies the Brazilian trading environment, including active participants in Brazilian trading, equities and derivatives volumes, and the evolution of BM&F Bovespa (BVMF). The report also outlines efforts made by the Mexican stock exchange, and discusses the role technological development may play in the future of emerging markets.
In 2007 and 2008, the Brazilian stock exchange (Bovespa) and derivatives exchange (BM&F) merged and began a strategic initiative to promote the equities and derivatives markets by gradually transforming them into a structure more reminiscent of their developed-market peers'. They did this by implementing capabilities seen in the world’s most advanced trading venues. Brazil’s considerable effort and investment can be seen in increased high frequency participation and improved equities and derivatives volumes over the last 18 months.
“While high frequency trading volumes in Latin America are miniscule compared to those in developed markets, BF&M Bovespa’s efforts to improve technological infrastructure have already unlocked liquidity in the Brazilian market,” says Danielle Tierney, analyst with Aite Group and author of this report. “The benefits to the market will continue as more participants become familiar with newly available trading opportunities.”
This 32-page Impact Report contains 23 figures and six tables. Clients of Aite Group’s Institutional Securities & Investments service can download the report.