Tullett Prebon, one of the world’s leading inter-dealer brokers, announced it has been granted approval from Dilma Rousseff, the President of Brazil, to acquire Convenção S/A Corretora de Valores e Câmbio (“Convenção”), one of the leading and most respected inter-dealer brokers in Brazil.

Steph Duckworth, Chief Operating Officer for Tullett Prebon, said the acquisition of Convenção plays especially well to Tullett Prebon’s strengths and its plans for growing its business in Latin America.

With this acquisition, the company can now expand its customer base by offering Brazilian clients access to global products and services, and at the same time, provide global clients elsewhere with access to local Brazilian markets, said Duckworth.

Duckworth confirmed that Convenção’s existing management Eduardo Azevedo and Marcelo Arbex will remain with Tullett Prebon after the transaction closes.

Headquartered in São Paulo, Brazil, Convenção’s products and services include futures of interest rates, options, commodities and foreign exchange desks, as well as fixed income and swaps.

Eduardo Azevedo reiterated that competition for the Brazilian market is increasingly fierce. With stock and derivatives markets going public, the trend is for brokerage firms to expand internationally. This joining of forces between Convenção and Tullett Prebon will provide Convencao’s customers, through new technology, with a wider range of products, said Azevedo.

Richard Higgs, Managing Director of Emerging Markets at Tullett Prebon in the Americas noted that in addition to reinforcing, investing in and integrating existing Convenção products into what Tullett Prebon offers on and off-shore, Tullett Prebon Information Services and electronic broking will now be able to offer products directly into Brazil.

This means Convenção clients will have access to global product and data information, and electronic platforms that complement Tullett Prebon’s industry-leading voice brokerage Operations, said Higgs.

Since Tullett Prebon’s initial announcement in October 2009 that it was to acquire the firm, Convenção has expanded from 22 brokers to 35 brokers.
 
Higgs said this increase not only reflects Convenção’s commitment to investing in professionals, products and services designed to meet the needs of their global client base, but reflects Tullett Prebon’s intention to develop a successful business in one of the leading economies in South America.Founded in 1973, Convenção has become one of the largest and most well respected inter-dealer brokers in Brazil. The company´s products and services include interest rates, options, commodities and foreign exchange desks, as well as Bovespa (the Brazilian stock exchange) futures, options, fixed income and swaps.

14th July 2011