Fidessa group plc (LSE: FDSA), provider of high-performance trading, market data and global connectivity solutions for the buy-side and sell-side, has today announced the launch of its Mexican trading platform. The platform will provide market participants with all the features necessary for compliant multi-asset trading under Mexico’s new trading regulations, which include routing and prioritisation rules. The new regulations were introduced in order to make trading and connecting with the Mexican Exchange (Bolsa Mexicana BMV) easier, accelerate the drive to more automated trading solutions and bring Mexican market trading in line with international standards.
Alice Botis, Head of Business Development Latin America, Fidessa says: “Fidessa’s technology has long been at the forefront of different global markets, and we have leveraged that expertise in the development of the Mexican solution. Close collaboration with the Mexican exchange and local regulators has ensured that the Fidessa trading platform meets the needs of customers in this new technology-driven marketplace.”
Alfredo Guillen, transactional service director, BMV, says: “Average daily orders in the Mexican cash market have increased threefold over the past year, and as global investors look to Mexican markets for new opportunities, we remain focused on improving functionality and trading rules. By working with a company such as Fidessa, which has developed solutions to address regulatory changes like MiFID in Europe and RegNMS in the US, we are taking another big step towards increasing foreign interest and investment in Mexico.”
The Mexican version of the Fidessa trading platform includes the core functions found in all other international implementations. It provides seamless and efficient straight-through processing from order inception to trade confirmation, fully integrated real-time global market data, and intelligent workflow and order management. It also incorporates advanced trading tools including algorithmic, program and pairs trading, member and non-member DMA trading and connectivity to more than 2,400 buy-sides for electronic client order flow and more than 600 brokers and 150 markets around the world.
In addition, Fidessa’s Mexican trading platform enables brokers to implement multiple channels to the market and provides the independent FolioCB sequencing and a separate FIX connection to the BMV for each channel as required by the regulations. By providing unique, sequential and consecutive numbers for each trade, the platform enables brokers to validate their orders and so demonstrate compliance with the important ‘prelación’ or prioritisation requirements of the regulations.
The Mexican trading platform also incorporates Level 1 market data sourced from the BMV, available either from a direct feed handler into Fidessa’s market access module or from Fidessa’s market data ticker plant. It supports all new order types allowed under the new regulations, including market, limit, package, active or passive best limit, iceberg and market-on-close orders, all with “good-for-day” and “good-til-day” durations.
Traders can validate orders by tick scales and round lot checks based on last execution price, tradability of instrument, extraordinary price fluctuations, foreign entry trading restrictions and, where applicable, custodial positions. The platform provides brokers with access to standard VWAP and TWAP algorithms, plus additional algorithms for market-making automation. In addition, Fidessa’s Pairs module allows traders to conduct automated arbitrage between US and Mexican markets.
The development of the Mexican trading platform is part of Fidessa’s commitment to developing its services for capital markets in Latin America. Fidessa has added 17 Latin American brokers to its connectivity network, including: Agora CTVM S.A., BES Securities, Casa de Bolsa Finamex, Celfin Capital, Credit Suisse Hedging-Griffo, Fator Securities, Grupo Bursatil Mexicano, ICAP Brazil CTVM, Interacciones Casa de Bolsa, InterBolsa Comisionista de Bolsa, Itau Securities, IXE Casa do Bolsa, Planner Corretora de Valores, Santander Investment Securities, Terra Futuros Corretora de Mercadorias S/A and XP Investimentos. In addition, Fidessa has recently signed a deal with Celfin Capital in Chile to provide it with its hosted trading technology.