New Brazilian fixed income market gears up for launch

A new trading platform for Brazilian corporate debt developed by the IntercontinentalExchange and fixed income depository Cetip is set for launch later this month.

A new trading platform for Brazilian corporate debt developed by the IntercontinentalExchange (ICE) and fixed income depository Cetip is set for launch later this month.

Cetip | Trader has received sign off from Brazilian securities regulator Comissao de Valores Mobiliarios and will offer voice-based and electronic trading from 25 February.

The market will initially offer trading in government and corporate bonds but may expand its product offering, subject to market demand.

ICE will make its ICE Link post-trade processing service available for the new platform, enabling middle- and back-office operations to allocate trades and submit them to Cetip for registration.

"In addition to easier access to liquidity and execution, the complete solution also aims for better operational risk mitigation and total cost reduction on the life of a trade," said Ricardo Vit, trading solutions manager at Cetip. "ICE Link allows standardisation in the trade workflow and better data integrations with counterparties and internal systems. This provides market participants a level of automation never before experienced in the Brazilian over-the-counter market."

Beta testing for Cetip | Trader with 80 market participants was completed last August.

"ICE was pleased to work with Cetip to build a product that is customised for the Brazilian market, available in Portuguese, and that provides a complete trading solution to the market for corporate and government bonds," said ICE senior vice president and chief strategic officer Dave Goone.

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