CME Group will distribute Brazilian Mercantile and Futures Exchange (BM&F)s products through its Globex platform while and BM&F will connect its distribution network to CME Globex, for the routing of orders for electronic trading of the products of both exchanges, under the terms of a new agreement between the two.
The agreement also means CME Group takes a 10% stake in while the South American outfit will hold 2% of the Chicago exchange
In a statement, both exchanges revealed that deal should be completed following BM&F IPO which is expected to be finalised by the end of the year.
We are very pleased that we are forging a long-term strategic partnership between CME Group and BM&F," said CME executive chairman Terry Duffy. South America represents a key market of opportunity for CME Group as we seek to expand the reach of our benchmark products to customers outside the U.S. This agreement allows us to extend our products to potential new users in Brazil.
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