SAO PAULO Jan 31 Cetip SA Mercados Organizados
, Brazil's largest securities clearinghouse, dropped
plans to create a local bourse or help ATS Brasil clear and
settle cash equities trades when it sets up an exchange in
coming months, newspaper Valor Econômico reported on Friday.
The newspaper cited Chief Executive Gilson Finkelsztain as
saying such moves would keep the company's focus away from
other, more important goals.
Cetip's media office and its external public relations
company did not immediately confirm Finkelsztain's comments for
His remarks in the report helped spark the biggest gain in
shares of BM&FBovespa SA, Brazil's sole financial
exchange company, in more than three weeks. BM&FBovespa rallied
2.1 percent to 9.6 reais on Friday, the biggest intraday gain
since Jan. 8.
Cetip shares rose 1.4 percent to 22.96 reais.
Analysts had speculated that ATS Brasil, a company seeking
to open a cash equities exchange in Brazil before the end of
this year, could team up with Cetip to create a company to clear
trades, avoiding the need to rent BM&FBovespa's clearing
This week, three senior executives at Cetip announced their
departures, a sign that a number of projects, many aimed at
developing products to compete directly with BM&FBovespa, could
Finkelsztain told Valor that Cetip would focus on its
current business segments, registration, custody and clearing of
fixed-income and over-the counter derivatives transactions and
the sale of liens for auto and mortgage loans.
"I'd rather do two things I do well than focus on ten
different initiatives," the newspaper quoted him as saying.
ATS Brasil will be the first competitor of BM&FBovespa, and
aims to secure a 15 percent market share in Brazilian equities
trading within two years of operating. The launch of the
exchange is planned for November, and could coincide with the
opening of a new Brazil-based clearinghouse.
In 2012, ATS Brasil executives said the new exchange would
rent BM&FBovespa's clearinghouse, even though BM&FBovespa is
unlikely to share its facilities until at least the start of
(Reporting by Guillermo Parra-Bernal and Aluísio Alves; Editing
by Toni Reinhold)