Brics exchange alliance to promote new asset class

Author: | Published: 18 Oct 2011
The newly-formed alliance between emerging market stock exchanges could encourage a so-called Brics asset class, Hong Kong stock exchange (HKEx) chief executive Charles Li has told IFLR.

The HKEx-led joint initiative, which was announced last week, will bring together Brazil’s BM&F Bovespa, Russia’s Moscow Interbank Currency Exchange, the Johannesburg Stock Exchange, and the HKEx, as the initial China representative. The National Stock Exchange of India and the Bombay stock exchange will join the alliance after finalising outstanding requirements.

The member exchanges will begin cross-listing benchmark equity index derivatives in local currency on each other’s exchanges by June 2012.

The alliance will then focus on developing products combining exposures to equity indices of all partners. In its third phase the initiative will involve product developments and...