Chi-FX Brazil will use executable foreign exchange (FX) rates provided by FX liquidity providers to disseminate streaming quotations for BVMF equities to foreign investors in their offshore base currency. Chi-FX Brazil will also allow foreign investors the ability 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, thereby mitigating intraday FX risk.
In this joint effort, 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.
âThere is tremendous and growing interest from the global investment community in participating in the Brazilian marketplace,â said Tal Cohen, CEO of the Americas for Chi-X Global. âAt Chi-X Global, we are committed to improving market efficiencies around the globe. We are very pleased to work with one of the worldâs 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.â
âWe are very pleased to work with Chi-X Global, one of the worldâs 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,â said Marta Alves, Chief Product Development Officer for BM&FBOVESPA. âThis tool, to be developed by Chi-X Global, will help foreign investors and their brokers to deepen their relationship with the Brazilian stock market.â
Chi-X Global and BVMF have agreed to a Memorandum of Understanding to begin development on the project, and plan to begin implementation later this year.