Trading systems vendor Fundamental Interactions (FIN) will play a key role in a proposed electronic market in Latin America, which would trade American Depository Receipts for U.S. and Canadian stocks that are linked to Latam securities, as well as other products. According to Bloomberg, the market will be located in one of Costa Rica, El Salvador or Panama, and the initiative is being headed by former Direct Edge COO Bill Karsh.
FIN’s low-latency matching software is set to power the Emerging Markets Virtual Xchange, which is slated for a second quarter go live. FIN will also be a part owner of the marketplace, with Karsh looking to sell stakes to U.S. and Latam brokerages.
With a location between major markets in the U.S. and Latam, there is opportunity to arbitrage between the two, leveraging the ability to receive information milliseconds faster than at either end of the trading link.
FIN – formed in 2009 – recently came to prominence when it installed its matching engine on Option IT’s Pipe managed service platform.
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