RIO DE JANEIRO, Brazil and JERSEY CITY, N.J., June 18, 2012 (GLOBE NEWSWIRE) -- Direct Edge issued a statement today welcoming today's release and the conclusions of the study conducted by Oxera Consulting Ltd (Oxera) entitled: What would be the costs and benefits of changing the competitive structure of the market for trading and post-trading services in Brazil? Direct Edge believes this comprehensive study clearly demonstrates the benefits of exchange competition and provides a sound basis for regulators and policy-makers to oversee its introduction into the Brazilian stock market.
"This report is entirely consistent with the benefits and principles that have guided our efforts to offer exchange competition for the benefit of Brazilian investors," said William O'Brien, CEO of Direct Edge. "We have long held, and global precedent proves, that competition rewards investors and their brokers with better products, lower costs and increased innovation. These benefits must be achieved, however, while avoiding the potential for increased systemic or operational risk, and allowing customers to utilize competing exchanges as easily as possible. The Oxera study validates our views and provides the Comissão de Valores Mobiliários (CVM) with a conceptual and operational framework to help achieve all these objectives. We look forward to continuing to provide our perspectives on these issues throughout the process as we finalize our application to register a competing exchange under Instruction No. 461."
The study was commissioned by the CVM to analyze the Brazilian stock markets and consider "tendencies of other countries, such as competition among different trading systems in stock trades." Direct Edge, a leading stock exchange in the United States, formally announced its intention to launch Direct Edge Brazil, an all-electronic platform for the trading of Brazilian equities, in November 2011. The exchange will be headquartered in Rio de Janeiro pending regulatory approval from the CVM.
Direct Edge Brazil
With Direct Edge Brazil, Direct Edge intends to adapt its high-performance technology, innovative approach and superior customer service to the unique needs of the Brazilian market and trading community. It is committed to competing as a respectful and responsible member of the marketplace and avoiding, wherever possible, the introduction of increased operational or systemic risk, allowing customers to take advantage of the new exchange as easily and as seamlessly as possible. For more information on Direct Edge Brazil and to sign up for updates, please go to: www.directedge.com.br
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Direct Edge
Direct Edge, America's newest stock exchange, offers the next generation of displayed markets. Direct Edge utilizes two independent exchange platforms and unique order types to match complementary forms of liquidity based on sensitivity to transaction cost, fill rate, and fill speed, while maintaining high execution quality and low latencies. Headquartered in Jersey City, N.J., Direct Edge is owned by a consortium that includes the International Securities Exchange, Knight Capital Group, Inc., Citadel Derivatives Group, The Goldman Sachs Group, and J.P. Morgan. More information about Direct Edge is available at http://www.directedge.com. Everybody Needs Some Edge.