B3, the company that runs the São Paulo stock exchange, is investing BRL 10 million (USD 1.98 million) to secure an undisclosed minority stake in MBOCHIP, a Porto Alegre-based tech firm specializing in trading screen technologies.
In an official statement, B3 underlined that this alliance underscores its persistent drive to modernize its systems and platforms. Among the strategic goals of this venture is the enhancement of services provided to institutional investors.
“The partnership with MBOCHIP, in addition to expanding our presence in providing solutions for institutional clients, allows us to advance in developing technology solutions for the capital markets,” says B3’s vice president of operations, Mario Palhares.
B3 added that this collaboration will usher in improvements in areas like ultra-low latency, expert support, swift response times, and the continuous evolution of the product development roadmap tailored for the capital markets.
For MBOCHIP, this partnership promises an extended reach and access to a broader clientele. With this financial boost, the blueprint entails the amplification of the company’s scale while ensuring the autonomy of its operations.
Established in 2009, MBOCHIP piqued B3’s interest with its offerings in the realm of Field Programmable Gate Array (FPGA) technology. This means it provides a programmable chip that accelerates the execution of algorithms.
Within MBOCHIP’s portfolio, this ultra-low latency technology is proffered through an electronic trading platform that predominantly caters to institutional clients, christened SiliconTrader.
B3’s financial endorsement of MBOCHIP is intricately woven into its recent agreements designed to fine-tune its operations. One such agreement, inked in July, entailed a partnership with Nasdaq for the development of a fresh clearing platform that shoulders the responsibilities of transaction clearing in the realm of capital markets.
Clearing platforms serve as the linchpin for recording, clearing, settling, and overseeing counterparty risks in financial market transactions. This nascent platform will extend its services to all markets currently funneled through B3’s Clearinghouse, spanning a wide spectrum of financial products.
The partnership with Nasdaq empowers the Brazilian exchange to tap into Nasdaq’s wealth of experience in managing high-volume and diverse markets, an indispensable asset for augmenting its post-trade product portfolio and solution capabilities.
Four months prior, B3 took the lead in a USD 5.55 million funding round for Vermiculus Financial Technology, a Swedish tech enterprise focused on stock exchanges, clearinghouses, central securities depositories, and clearing technology.
The partnership revolves around creating a novel cloud-based depository system, slated for completion by 2025, aiming to bolster the capacity to welcome new investors and issuers and facilitate the inclusion of assets like tokens.
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