Brazilian financial exchange BM&FBovespa SA (BVMF3.BR) Wednesday announced that it has signed contracts with CME Group Inc. (CME) to develop a new joint trading platform and to increase its stake in the U.S. exchange to 5% from 1.8%.

The contract followed through on a letter of intent signed on Feb. 11.

The Brazilian exchange operator is paying $620 million to increase its CME stake in line with the cross-holding already held by the U.S. company, which announced a parallel share-buyback plan.

The new trading platform targets execution speeds below one millisecond and will incorporate the derivatives-focused technology of CME. BM&FBovespa, which offers securities and derivatives, will contribute stock-oriented systems.

-By Alastair Stewart, Dow Jones Newswires; 5511 3544-7072; alastair.stewart@dowjones.com
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