Bolsa Institucional de Valores (BIVA), the new Mexican bourse, will adopt Nasdaq’s (NASDAQ:NDAQ) X-stream Trading technology along with the US exchange’s SMARTS surveillance service, the two companies said in a press release.
Alternative bourse should improve market
This is Mexico’s second exchange and its appearance on the financial market scene is part of the ongoing financial reform in the country. Awaiting the approval of the Mexican Finance Ministry, BIVA is expected to contribute to the liquidity pool in the country’s financial market, boost technological innovation, and ensure market continuity. The alternative venue is also hoped to encourage more companies to float. All securities currently traded on Mexico’s only existing exchange will become tradable on BIVA once it goes live and in the future companies will get to pick which bourse they want to be listed on.
Proven trading, surveillance systems seen to improve liquidity
X-stream is, according to the statement, the most widely used trading technology globally, with more than 30 exchanges among its clients. Overall, fintech developed by Nasdaq is in use by more than 100 bourses across the world, with services including, trading, clearing, central securities depository (CSD), and market surveillance.
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The Chief Executive Officer of the new Mexican exchange, Fernando Perez Saldivar, said: “We see this new partnership with Nasdaq as a crucial part of successfully launching BIVA and giving Mexico’s financial sector the boost of liquidity and world-class technological infrastructure it absolutely deserves.”
“X-stream and SMARTS will enhance BIVA’s international credibility”
Nasdaq’ s Executive Vice President and Head of Market Technology Lars Ottersgård, for his part, commented: “Nasdaq has always been a proponent of marketplace diversification and increasing sources of liquidity, which benefits investors and market participants alike, as well as risk mitigation requirements driven by the regulators. Operating our market technology will give BIVA the international credibility and join a long list of the world’s most powerful exchanges running on Nasdaq systems.”