Citi brings block trading to Brazil with TOTAL TOUCH PLATFORM to access BLOCK LIQUIDITY


Citi brings block trading to Brazil with TOTAL TOUCH PLATFORM to access BLOCK LIQUIDITY

Tim Cave

11 Jul 2013

http://www.efinancialnews.com/story/2013-07-11/citi-brings-block-trading-to-brazil?omref=email_TradingTechnology

11 Jul 2013

Citigroup is to expand its US electronic block-trading platform to include Brazilian equities, in a move aimed at combating the rise of high-frequency trading that has made it tougher for institutional investors to complete large trades in Brazil.

Citi brings block trading to Brazil

Citi’s Total Touch platform, which offers investors electronic access to US equities and exchange-traded funds, has been expanded to include Brazilian equities for the first time, Citi said in a statement.

The Total Touch platform, which was first launched in 2010, combines both high-touch, or voice-driven sales trading, with electronic execution methods to allow clients access to block liquidity.

Block trading platforms allow institutional investors to trade large orders without prices moving against them. Such trades have become increasingly difficult to complete during the rise of automated trading, which has reduced average order sizes.

According to BM&FBovespa‘s 2012 results, HFT participation on the Brazilian exchange’s equities segment grew from 8.5% to 9.4% of overall volume during the year. HFT participation on its derivatives segment, BM&F, increased from 6% to 6.5% in 2012.

 

Fabio Gheilerman, head of Latin America trading at Citi, said: “The rise of high-frequency trading Brazil has increased the appetite among our clients to be able to trade blocks in the country. Leveraging Citi’s global presence and local footprint, we are able to respond to client demands for electronic execution with price protection.”

BM&FBovespa is Brazil’s only stock and futures exchange operator. It has been attempting to court high-frequency traders to boost volumes and steel itself against the prospect of increased competition from rival venues.

US-based exchange operators, NYSE Euronext, Bats Global Markets and Direct Edge, as well as the London Stock Exchange, are exploring the opportunity of creating an alternative stock exchange in the country.

BM&F has cut fees to lure HFTs and offered specialist services such as co-location, which allows firms to place servers next to the exchange’s matching engine and shaves crucial seconds off trading times. It has also gone live with a new high-speed trading platform called Puma, developed with BM&FBovespa`s partner CME Group.

 

Citi’s move follows an announcement in May that it had overhauled its US electronic trading platform for equities, resulting in closer links between its electronic and sales trading desks that have historically been kept separate. The revamp formed part of the US bank’s push to help clients locate buyers and sellers for their equity orders amid a continued environment of low trading volumes.

Kevin Russell, Citi’s global head of cash equities trading, said: “The global equities market is at a crucial and unique phase in its evolution. The intersection of experienced human trader knowledge and robust electronic capabilities creates an opportunity for market participants to take advantage of a hybrid approach to investing.”

–write to Tim Cave, timothy.cave@dowjones.com

 
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About carlarweir
I am a Cross Asset FIX Connectivity SME working for international banks. i also sit on the FIX Protocol Ltd Global Steering Committee, and am Co-Chair of the Global Cross Asset Committee. I also have a very strong background in Mobile Telephony, Cloud computing, SaaS, IaaS, PaaS, Big Data, innovation, and am a pioneer in Pseudolite technology.

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