CME Group, BM&F Bovespa partner to create new electronic platform for Brazilian exchanges

CME Group, BM&F Bovespa partner for new platform

CHICAGO — Exchange operators CME Group Inc. and Brazil’s BM&F Bovespa SA said Friday they are partnering to create an electronic trading platform for BM&F Bovespa’s cash equities and derivatives markets.

The platform will give Brazilian traders access to executing global derivatives and equities traders electronically.

The new trading platform will launch in early 2011. CME Group and BM&F Bovespa will also license the technology to other exchanges.

As part of the deal, BM&F Bovespa will expand its ownership stake in CME Group to 5 percent. Chicago-based CME Group already owns about 5 percent of the Brazilian exchange operator. CME Group will sell shares at a price of $275.12 to BM&F Bovespa.

Shares of CME Group fell 29 cents to $284.78 in morning trading as the broader market tumbled.

CME Group approved a plan to buy back up to 2.35 million shares of common stock to offset the new shares it will sell to BM&F Bovespa.

BM&F Bovespa will also be given a seat on CME Group’s board of directors.