ICE, Cetip to Partner on Brazilian Bonds Platform

The move signals yet more demand for enhanced, local trading capacity in emerging markets.

Atlanta-based futures exchange operator IntercontinentalExchange (ICE) has announced it has agreed to partner with Brazilian clearinghouse and custody provider Cetip S.a. to build a new fixed-income trading platform, which will offer Brazilian corporate and government bonds.

Under the agreement, the Brazilian firm will develop product strategy and promotion while ICE will provide technological expertise, with the new platform expected to be operational in the second half of 2012.

"Through this partnership we are combining Cetip's leadership in fixed-income markets together with ICE's technology and experience in building liquid, transparent markets to bring more liquidity and depth to the bond markets in Brazil," says ICE chief strategic officer David Goone.

Cetip officials also cite other effective ICE engagements in emerging markets for the choice. "A major reason for this partnership is ICE's demonstrated ability to successfully deliver liquidity and pricing transparency in other less liquid markets, similar to the scenario we currently have with our local corporate debt. The speed with which they can deliver the product to our market was another key factor," says Cetip CEO Luiz Fernando Fleury.