BM&FBOVESPA chooses Cinnober for new clearing system
(Thomson Reuters ONE) -
Major landmark order for TRADExpress RealTime Clearing
BM&FBOVESPA has selected Cinnober for a monumental clearing project, aiming to
integrate the post-trade environments across the full range of the Brazilian
giant's markets.
This joint project will completely re-engineer the Brazilian post-trade
landscape by integrating the exchange's four clearinghouses and improving
operating efficiency for market participants. A multi-asset clearing system
based on TRADExpress RealTime Clearing will be delivered for equities,
derivatives, government bonds and spot FX.
This implies the full replacement of existing systems and a true multi-asset
class approach with real-time risk calculation capabilities. The new unified
risk management processes at BM&FBOVESPA will contain a multi-asset and multi-
market risk management framework, utilizing multiple simultaneous risk methods
in real time.
"TRADExpress RealTime Clearing will be an important instrument for the
integration and modernization of our post-trade environments. We're looking
forward to building a business and service center with state-of-the art
technology for the Brazilian and international markets," said Edemir Pinto, CEO
of BM&BOVESPA.
The new Brazilian clearing system will also produce world-leading collateral
management, by introducing efficient collateral pools, as well as netting of
positions and settlement instructions based on asset class. The accounts will be
kept at final beneficial owner level - thus climbing from 600,000 accounts to
over 10 million, making it one of the largest - if not the largest - clearing
solutions in the world.
"This is the most comprehensive clearing project in the world to date, and I've
been in this industry since the 80s. We're of course extremely proud to have
been chosen by BM&FBOVESPA for this task," said Nils-Robert Persson, Executive
Chairman of Cinnober. "Brazil is a forerunner in our industry in many ways.
While looking for improvements, the European Union is looking deeply into
Brazilian regulation, so to be appointed as BM&FBOVESPA's technical partner for
this clearing project is one of the most important steps we've taken as a
company."
During the Lehman crisis and after analyzing major challenges facing the post-
trade industry, Cinnober launched TRADExpress RealTime Clearing in 2009, in the
firm belief that this would be the next paradigm shift for the exchange and
clearing industry. Since then the market has started to pick up this pioneering
message and focused harder on real-time risk management and improved clearing
technology.
The renowned flexibility of the Cinnober system stems from an innovative member
and account structure as well as a state-of-the-art plug-in architecture, making
it possible to expand the system with new products, risk models and algorithms
with short time to market. The system can run several risk algorithms in
parallel, and it is possible to add algorithms as needed. This enables optimal
risk control with thorough stress testing, and the use of different algorithms
for different instrument classes.
"I've said it before and will say it again: legacy clearing systems are clearly
not able to match the flexibility and functionality required in a modern
marketplace," adds Persson, "so other actors are sure to follow this Brazilian
initiative."
The project for the integration and modernization of BM&FBOVESPA's post-trade
environments will continue to be developed in 2012, with integrated market
testing and the start of implementation expected in 2013.
For further information, please contact:
Nils-Robert Persson
Executive Chairman, Cinnober Financial Technology AB
Tel. 46 70 552 52 28
nils-robert.persson(at)cinnober.com
BMF&BOVESPA Press Office
Tel. +55 11 2565-7943
imprensa(at)bvmf.com.br
About BMF&BOVESPA
BM&FBOVESPA S.A. - The Brazilian Securities, Commodities and Futures Exchange
was created in 2008 with the integration between the Brazilian Mercantile &
Futures Exchange (BM&F) and the São Paulo Stock Exchange (Bovespa). Together,
the companies have created one of the largest listed exchange groups in the
world, the second in the Americas, and the leading exchange in Latin America.
The Exchange features a vertically integrated business model, with trading,
registration, netting, settlement, risk management, market data, and central
securities depository services. BM&FBOVESPA's state-of-the-art technological
resources provide investors with an efficient and secure trading and post-
trading environment. Among its broad range of trading products, the Brazilian
Exchange offers equities, securities, financial assets, indices, interest rates,
agricultural commodities, as well as foreign exchange futures and spot
contracts, and acts as a central counterparty for all of its market segment
through its clearinghouses - equity, derivatives, foreign exchange, and
securities.
About Cinnober Financial Technology AB
Cinnober provides mission-critical solutions and services to leading trading and
clearing venues. Cinnober's solutions are based on the TRADExpress(TM) Platform
incorporating everything needed for mission-critical solutions in terms of
performance, robustness and flexibility. The portfolio of offerings includes
price discovery and matching, real-time risk management, clearing and
settlement, data distribution and surveillance. Cinnober's customers include
Alpha Trading Systems, Borsa Italiana, Burgundy, Chicago Board Options Exchange,
Deutsche Börse, Eurex, Hong Kong Mercantile Exchange, London Metal Exchange,
Markit BOAT, NYSE Liffe, Stock Exchange of Thailand and Quadriserv. For
additional information, please visitwww.cinnober.com.
Press release:
http://hugin.info/139660/R/1562327/483971.pdf
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Source: Cinnober via Thomson Reuters ONE
[HUG#1562327]
Unternehmensinformation / Kurzprofil:
Datum: 09.11.2011 - 10:23 Uhr
Sprache: Deutsch
News-ID 85651
Anzahl Zeichen: 6982
contact information:
Town:
Stockholm
Kategorie:
Business News
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"BM&FBOVESPA chooses Cinnober for new clearing system"
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