UPDATE 1-Nasdaq OMX, BM&FBovespa agree terms of partnership
NEW YORK, Oct 23 (Reuters) - U.S.-based Nasdaq OMX (NDAQ.O) and Brazil's BM&F Bovespa (BVMF3.SA) have agreed to terms of a partnership for order routing and the distribution of products, services and data, the exchange operators said on Friday.
Under the nonbinding partnership, the companies would build a routing system through which U.S. and Brazilian brokers could trade stocks on the other country's exchange.
Nasdaq OMX, which runs the Nasdaq Stock Market, and BM&FBovespa, the world's fourth-biggest exchange, would distribute market data related to stock prices on the other's venues, under a nonexclusive agreement, they said.
As well, BM&FBovespa would offer Nasdaq OMX's products and services to Brazilian companies.
The two companies said they extended an exclusivity agreement to Dec. 31 so that a definitive deal can be hammered out, adding they will continue talks on technology-related cooperation.
The joint statement comes nearly two months after the exchange operators said they were in talks for a strategic partnership.
It signals Nasdaq OMX's intention to enter the fast-emerging Latin American market to boost volumes as its core market share erodes, and BM&FBovespa's desire for Nasdaq OMX's products and services, including support, analyst reports, and assistance for the boards of listed companies, analysts had said after word of the talks. (Reporting by Jonathan Spicer; editing by Carol Bishopric)
