The global Equities business of UBS (NYSE: UBS) has announced the launch of algorithmic trading for international clients trading equities on the Bovespa stock exchange in Brazil.
UBS is among the first broker-dealers to offer non-Brazilian clients algorithmic trading in this major market.
UBS is launching this offering for international clients who trade Brazilian securities with three algorithms: Volume Weighted Average Price (VWAP); Time Weighted Average Price (TWAP); and Volume Inline, a strategy that enables an investor to execute an order correlated to available liquidity. Execution algorithms are complex quantitative electronic trading formulae that clients can use to manage and tailor their equities orders. UBS clients can use these algorithmic trading strategies to quickly and efficiently send their electronic orders directly to the Bovespa, without passing them through an intermediary.
In July 2008, UBS was among the first international brokers to launch Direct Market Access (DMA) in Brazil whereby non-Brazilian investors can trade electronically directly on the exchange. UBS clients can send front-to-back algorithmic trading orders directly from their desktop execution management system or order management system, including UBS's own "Pinpoint."
"We gained a tremendous amount of experience over the last year with our Direct Market Access offering in Brazil, and our intention has always been to add algorithmic trading," said Owain Self, Head of Algorithmic Trading for EMEA and the Americas at UBS Investment Bank. "Our successful DMA platform provided the ideal knowledge base to build algorithmic strategies for the Bovespa in a truly custom way - specifically geared to the unique attributes of this market. This development is particularly exciting as our clients who trade stocks in Latin America have had an extremely positive response."
Raul Esquivel, the Head of the UBS Investment Bank for Latin America, said, "The launch of algorithmic trading into Brazil is a perfect example of our ongoing commitment to the region. We are pleased to offer these sophisticated strategies to our international clients who wish to efficiently tap the abundant investment opportunities in this dynamic marketplace."