The global equities business of UBS has launched algorithmic trading for international clients trading equities on the Bovespa stock exchange in Brazil.
UBS is among the first broker-dealers to offer non-Brazilian clients algorithmic trading in this major market.
UBS is launching this offering for international clients who trade Brazilian securities with three algorithms: volume weighted average price; time weighted average price; and volume inline, a strategy that enables an investor to execute an order correlated to available liquidity.
Clients can use these algorithmic trading strategies to quickly and efficiently send their electronic orders directly to the Bovespa, without passing them through an intermediary.
In July 2008, UBS was among the first international brokers to launch Direct Market Access in Brazil whereby non-Brazilian investors can trade electronically directly on the exchange. Clients can send front-to-back algorithmic trading orders directly from their desktop execution management system or order management system, including UBS’s own Pinpoint.
“We gained a tremendous amount of experience over the last year with our Direct Market Access offering in Brazil, and our intention has always been to add algorithmic trading,” says Owain Self, head of algorithmic trading for EMEA and the Americas at UBS Investment Bank. “Our successful DMA platform provided the ideal knowledge base to build algorithmic strategies for the Bovespa in a truly custom way – specifically geared to the unique attributes of this market. This development is particularly exciting as our clients who trade stocks in Latin America have had an extremely positive response.”
