June 9 (Bloomberg) -- Brazil's commodities and futures exchange plans to develop a short-term energy contract that will help utilities, generators and energy trading companies cut transaction costs, the exchange said in an e-mail.

The Sao Paulo-based exchange, known as BM&F, has formed a partnership with the Brazilian association of electricity traders to design the contract, the exchange said. Currently, most of the short-term energy transactions are done over-the-counter or through privately held auctions, the exchange said.

To contact the reporter on this story: Romina Nicaretta in Sao Paulo at at Rnicaretta@bloomberg.net

Last Updated: June 9, 2005 09:07 EDT