LSEG has signed a strategic agreement to provide its integrated market infrastructure technology suite to Brazilian challenger exchange and clearing house A5X.
Alongside an end-to-end post-trade platform, LSEG’s market infrastructure technology services include pre-trade risk management, an ultra-low latency matching engine, market distribution services and real-time surveillance.
Derivatives and futures exchange A5X was established in 2024 as an alternative to dominant Brazilian exchange B3. CEO Carlos Ferreira, who founded the firm alongside Karel Luketic, Julian Chediak and Nilson Monteiro, previously spent more than 14 years at financial services provider XP.
According to a survey conducted by the Futures Industry Association (FIA) and Coalition Greenwich, 30% of market participants believe that Brazil has the greatest growth potential for their firms over the next two years.
B3 provides futures and options for various currencies, interest rates and equities. The average daily volume (ADV) for listed derivatives in Q1 2025 was 8.9 million contracts – a 9.4% year-on-year (YoY) decline. However, revenue per contract (RPC) was up 29.3%.
Overall revenue for markets was R$1.8 billion (US $323.7 million), up 7.5% YoY.
In January, Optiver, IMC Trading, Jump Trading Group, XTX Markets and ABN AMRO Clearing Bank invested in A5X’s Series B funding round.
The exchange intends to begin regulatory testing in Q4 2025, and launch commercially in H1 2026.
