September 06th, 2016 (New York/San Francisco/London/São Paulo) – BM&FBOVESPA has joined financial innovation firm R3’s partnership to design and apply distributed and shared ledger-inspired technologies to global financial markets.
BM&FBOVESPA, the largest financial market infrastructure in Latin America and one of leading exchange groups in the world, will be collaborating with over 60 of the world’s largest financial institutions to develop ground-breaking commercial applications for the financial services industry that leverage the appropriate elements of distributed and shared ledger technology.
The R3 team of financial industry veterans, technologists and blockchain and cryptocurrency experts collaborate with consortium members on research, experimentation, design and engineering to help advance this technology to meet financial and capital markets requirements for identity, privacy, security, scalability, interoperability and integration with legacy systems.
Consortium members work closely with R3 to develop Corda™, its shared ledger platform specifically designed to record, manage and synchronise financial agreements between regulated financial institutions. It is heavily inspired by and captures the benefits of blockchain systems, without the design choices that make blockchains inappropriate for many financial and capital markets scenarios.
Fabio Dutra, Client and Business Development Managing Director at BM&FBOVESPA, commented: “We believe that strong collaboration with our customers, regulators and vendors is crucial to futureproof financial and capital markets. Innovation with appropriate regulatory oversight is paramount to making the Brazilian markets even more efficient and reliable. Shared ledger technology may play an important role here.”
Jochen Mielke de Lima, IT Managing Director at BM&FBOVESPA, added: “BM&FBOVESPA is researching blockchain-based solutions from a business and IT perspective, and we are pleased to join R3 in the drive to innovate in capital markets. Distributed ledgers hold a promise for process efficiencies and we want to work with our customers to evaluate real use cases.”
David Rutter, CEO of R3, commented: “Distributed and shared ledger technology can transform the way in which FMIs (Financial Market Infrastructures) such as BM&FBOVESPA issue, record and transfer assets, enabling transactions and reference data to be visible to all relevant parties on the ledger. This can cut effort and costs dramatically. We are pleased to welcome BM&FBOVESPA to our growing network of consortium members in Brazil.”
BM&FBOVESPA joins the global network of R3 partners united in its lab environment, the R3 Lab and Research Centre, which has quickly become a center of gravity for collaborative research and testing of distributed and shared-ledger inspired technologies.
R3 is leading a consortium with over 60 of the world’s largest financial institutions to develop ground-breaking commercial applications for the financial services industry that leverage the appropriate elements of distributed and shared ledger technology.
Operating in New York, London and San Francisco, the R3 team is made up of financial industry veterans, technologists, and new tech entrepreneurs, bringing together expertise from electronic financial markets, cryptography and digital currencies.
The R3 Lab and Research Centre has quickly become a centre of gravity for collaborative research and testing of distributed and shared-ledger inspired technologies, and is where R3 works with its partners to define, design and deliver the next generation of financial infrastructure.
BM&FBOVESPA is the largest financial market infrastructure in Latin America and one of leading exchange groups in the world. It provides trading, clearing and settlement services in all major asset classes and markets, including equities, fixed income, currencies and commodities. The company’s diversified business model also includes a trade repository, OTC derivatives clearing and a central securities depository.
Headquartered in São Paulo with offices in New York, London and Shanghai, BM&FBOVESPA has a long tradition of technology and product innovation, and plays an important role in developing the regional capital markets by advancing best practices in corporate governance, risk management and sustainability.
Acting as a central counterparty and through its network of vetted clearing members and participants, the company provides safe and resilient markets, which contribute to long term capital formation and economic growth in the region.
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