) has jointly launched Cetip | Trader, a new electronic trading
platform for fixed income bonds in Brazil, with Cetip S.A. The
platform offers a unique combination of electronic trading, voice
confirmation and processing services along with providing real-time
and historical data through a single tool.
The Cetip | Trader offers five main functions apart from
straight-through processing, allocations processing, and depository
registration. The platform allows bilateral settlement of
electronic buy and sell orders, confirmation of voice trades via
Cetip | Voice and price formation during an auction process through
its Limit Order Volume Clearing feature. Additionally, it enables
users to securely send multiple pricing requests to dealers through
the 'Request for Quote' feature and helps them to increase their
trade volume after the market defines a particular level, via the
Volume Clearing facility.
The combination of these features in a single tool is expected
to bring transparency and workflow automation to the Brazilian
fixed-income bond market. In addition, IntercontinentalExchange has
the required technical proficiency to adapt a trading platform to
suit the needs of the Brazilian bond market. Since its inception,
the company has been developing and offering a diverse array of
products and a broad range of risk management services including
trade execution, market data, pre- and post-trade processing and
clearing services on an integrated platform.
The launch of Cetip | Trader is expected to boost the revenues
of IntercontinentalExchange's Transactions and Clearing Fees and
Market Data segments. The company will also get additional benefit
from the joint venture as it holds 12.4% shares in Cetip, which is
Brazil's largest clearing house, as well as the leading operator of
registration and custodial services for securities, fixed-income
bonds and OTC derivatives. The platform will enable both the
companies to gain from the record-low interest rates in Brazil,
which is boosting the demand for corporate debt.
IntercontinentalExchange, which competes with
CBOE Holdings Inc.
NASDAQ OMX Group Inc.
), currently carries a Zacks #3 Rank, implying a short-term Hold
rating. We maintain our long-term 'Neutral' recommendation on the
CBOE HOLDINGS (CBOE): Free Stock Analysis
INTERCONTINENTL (ICE): Free Stock Analysis
NASDAQ OMX GRP (NDAQ): Free Stock Analysis
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