(Reuters) — BM&FBovespa, the world's fourth-largest exchange operator by market value, has agreed to raise its stake in CME Group Inc. for $620 million and develop new technologies, in its biggest bet to date on high frequency trading.
As part of the deal, BM&FBovespa will increase its stake in Chicago-based CME to 5 percent from 1.8 percent, the Brazilian company said Friday.
The companies also agreed to develop new technologies for high-speed trading platforms for stocks, derivatives, currencies, government and corporate bonds, where investors will be able to buy and sell securities in less than 1 millisecond.
BM&FBovespa said it will invest $175 million over 10 years in the new trading platform.
CME and BM&FBovespa also formed a "strategic partnership," valid for 15 years, to jointly look for partnerships and investment opportunities in other exchange operators around the world.
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