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US firms to clear Brazilian trades via SunGard platform
23 February 2010
US futures commission merchants will be able to use SunGard’s one-stop GMI platform to process and clear trades on BM&F Bovespa, the Brazilian stock and derivatives exchange, from the second quarter this year. The GMI system also helps with post-trade accounting.
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SunGard
GMI
BM&F Bovespa
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Customers will be able to automate the process of loading trades, bookkeeping and calculating margins and fees. GMI’s trade load functionality means US FCMs will be able to import cleared trades from Brazil directly into their GMI systems.
SunGard will also develop a smart gateway to BM&F Bovespa, to give clearing members automated uploads of transactions directly into either GMI or SunGard’s GL Ubix back office system for listed derivatives.
Cícero Augusto Vieira Neto, chief operating officer at BM&F in São Paulo, said: “SunGard’s middle and back office support, as well as added transparency into margins and fees, will give US firms the confidence to automate the clearing process on a larger scale, check their own margins to help control risk and cost, and have an infrastructure in place to share information with downstream applications.”
The cooperation between SunGard and BM&F follows the US Commodity Futures Trading Commission’s decision last August, to allow US residents to use equity index derivatives based on the Ibovespa index of Brazilian stocks. Full and mini-sized Ibovespa contracts are available in the US through CME’s Globex trading platform, under a mutual order routing agreement between CME and BM&F Bovespa.