Americas Trading System Brasil -- a joint venture between
If all goes as planned, ATS Brasil will get a license during the first half of 2014, begin testing and launch in 2015, said
At one point, there were eight regional exchanges in
"There's not a lot of trade quite frankly,'' said Gandelman. "Bovespa doesn't represent the Brazilian economy at all."
Another anomaly in
"This is a big negative for
The idea for an alternative exchange was hatched about eight years ago when Gandelman and a group of colleagues worked together at the Brazilian brokerage Agora. Those colleagues would become the major shareholders of ATG.
"We heard a lot of complaints from customers, especially international customers,'' Gandelman said during a recent visit to
"We realized there was not only room for, but also a need for, another exchange. The exchange monopoly not only is making trading more expensive and somewhat inefficient, but it is also holding back the development of companies,'' said Gandelman.
ATS Brasil, he said, expects to be able to offer lower fees through a leaner structure with fewer people, an efficient business plan and new technology.
But BM&F Bovespa also has begun to reduce fees, extending lower exchange fees to day traders on the cash equity market last April and instituting more fee reductions in December.
"We are in a fierce competition prior to competition,'' said Gandelman. "It's a war zone."
AFS Brasil submitted its application last June to the
"The regulators do understand what we're trying to do. Eighteen months ago everyone was saying it wouldn't happen. But we expect to get approval for a license in the first half of 2014,'' said Gandelman.
BM&F Bovespa currently operates the only clearinghouses in
It now says it will be able to offer clearing and settlement services to rivals in 2015 after it unifies its four clearing operations.
In BM&F Bovespa's fourth-quarter statement, Chief Executive
"But if it takes them longer to unify then expected, it could push back our whole process,'' said Gandelman.
So in March, ATG and Risk Office, a Brazilian risk management consulting company, plan to file an application with the
"I think we're making history in
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