Nasdaq OMX and BM&F Bovespa in partnership talks; LSE and Nyse Euronext eye Indian bourse stakes

Nasdaq OMX and Brazil's BM&F Bovespa have entered into exclusive discussions aimed at setting up a strategic, commercial and technological partnership. Meanwhile, local press reports suggest the LSE and Nyse Euronext are both considering taking five per cent stakes in India's MCX-SX.

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Nasdaq OMX and BM&F Bovespa in partnership talks; LSE and Nyse Euronext eye Indian bourse stakes

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Over the next 60 days, the Nasdaq OMX and BM&F Bovespa will look into developing an order routing system that would enable international investors connected to one exchange to send buy and sell orders for stocks traded in the other. BM&F Bovespa already has a similar agreement with the CME.

The exchange operators are also exploring a commercial agreement that would see BM&F Bovespa licensing Nasdaq OMX-developed products and services and offering them to publicly traded Brazilian companies.

The deal could also see the firms distribute each others market data on a non-exclusive basis and evaluate other "technology cooperation opportunities".

Separately, the London Stock Exchange and Nyse Euronext are both considering taking five per cent stakes in new Indian bourse MCX Stock Exchange, according to local press reports.

The Mint newspaper says MCX-SX founders Financial Technologies and Multi Commodity Exchange of India are required to pare their stakes by 15 September in order to comply with Securities and Exchange Board of India regulations.

Citing two people close to the development, Mint says the LSE and Nyse Euronext have shown interest in taking five per cent stakes at Rs35 a share.

Mint says the MCX-SX founders have cut their combined holding from 100% to 70% since September, with a group of banks taking a 25% stake. However, the founders hope to get their ownership down to 40% in order to receive regulatory approval for equity trading.

LSE, Nyse in talks for 5% stake in MCX-SX - Mint

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