BM&FBovespa Will Use Nasdaq OMX's Surveillance Program

Brazil's largest exchanges and its SRO plan to use Nasdaq OMX's SMARTS Integrity market surveillance program to monitor trading across their equities and commodities platforms.

BM&FBovespa, the largest stock exchange in Latin America and , the Brazilian self-regulatory organization (SRO), said they will use Nasdaq OMX’s SMARTS Integrity market surveillance program to monitor trading across their equities and commodities platforms.

The SMARTS Integrity platform will provide BM&FBovespa and BSM with an automated solution for market surveillance, operations and market oversight, strengthening their current surveillance capabilities and providing them a scalable platform for long-term growth.

BM&FBovespa and BSM, which is in charge of inspecting and supervising transactions and those persons authorized to trade, will have a comprehensive portfolio of alerting scenarios for market behaviors. As the exchange grows its business, the surveillance system will enable BSM to maintain a compliant and orderly market, noted the release.

“BM&FBovespa is committed to maintaining the highest level of market integrity and an operating framework that inspires confidence amongst participants. SMARTS Integrity’s cross-market surveillance platform will allow us to monitor our markets effectively and efficiently, with the scalability to process increased volumes as we expand,” stated Cicero Vieira, COO of BM&FBovespa in today’s release. “The combination of proven functionality, reliable performance and NASDAQ OMX’s global technology expertise make SMARTS Integrity an optimal platform to help us achieve our goals.”

BSM implemented the automated analysis of all trades containing warnings on transactions with evidence of violation in the second half of 2009. Since then, efficiencies have been gained since the BSM staff now focuses exclusively on trades that show strong signs of irregularity. “With the implementation of the SMARTS Integrity platform, we expect to gain in efficiency and assertiveness, continuing the process of improvement,” added Luis Gustavo da Matta Machado, Chief Regulatory Officer of BSM, in the release. “SMARTS can bring more tools for the accomplishment of our self-regulation activities.”

In the same release, Anna Ewing, CIO of Nasdaq OMX, stated: the global exchange operator is “thrilled to be partners in improving the efficiency and transparency of the global marketplace. “As one of the largest markets in the world, we see BM&FBOVESPA as a leader in promotion of compliance standards and market integrity in Latin America. Powering trading, surveillance and risk management solutions for the full range of market participants, NASDAQ OMX aims to help ensure fair markets across the globe.”

Ivy is Editor-at-Large for Advanced Trading and Wall Street & Technology. Ivy is responsible for writing in-depth feature articles, daily blogs and news articles with a focus on automated trading in the capital markets. As an industry expert, Ivy has reported on a myriad ... View Full Bio