NYSE, ATG Plan Stock Exchange in Brazil by First Half of ‘14

A joint venture between Americas Trading Group and NYSE Euronext filed a formal request to open an exchange that would break BM&FBovespa SA’s monopoly in stock trading in Brazil.

Americas Trading System Brasil, as the joint venture is known, expects to start operating in the first half of 2014, depending on regulatory approval, Chief Executive Officer Alan Gandelman said in a telephone interview from Sao Paulo.

“We are really doing this,” Gandelman said. “It will be positive for the Brazilian stock market.”

BM&FBovespa’s press office declined to comment when contacted by Bloomberg News. The exchange’s chief financial officer, Eduardo Guardia, said in April that the market is too small for two competitors and that a potential rival would have to set up a clearinghouse because BM&FBovespa isn’t legally obligated to share the one it has.

Shares of BM&FBovespa declined 6.9 percent to 12.19 reais at the close of trading in Sao Paulo, the biggest one-day drop since February 2010. The stock has lost 13 percent this year while the Ibovespa, the benchmark equity gauge, slumped 21 percent.

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