BM&F, the Brazilian derivatives exchange, has announced that it will introduce electronic trading for USD/BRL. The venture is a joint initiative with the Brazilian Federation of Banks and the Central Bank of Brazil. In an external memo, BM&F says it is currently responsible for the registration and settlement of about 95% of transactions in the domestic USD/BRL market. Around 85% of this is traded OTC.
The exchange says that by providing an electronic platform with direct market access, it will improve efficiency and facilitate the execution of arbitrage and hedge strategies by investors. The platform is scheduled to go live in the second quarter of 2008.