Brazil’s premier stock market operator BM&FBovespa has finally agreed its purchase of a rival clearing house based in Rio.

The bourse is arranging loan financing to fund part of the 12.9bn reais ($3.6bn) that its acquisition of Cetip could cost.

Brazil's Cetip is Latin America's largest depositary of fixed income securities and Brazil’s largest private asset clearinghouse.

The agreement still requires approval by the regulatory bodies the Central Bank of Brazil, the Securities and Exchange Commission of Brazil and Brazil’s Council for Economic Defense.

Integrating activities will “significantly strengthen” the new company’s business model, a statement said.

It is also expected to boost revenue diversification – Cetip has over 15,000 customers – and consolidate back office functions for custodians, asset managers and brokerage houses. 

One of the main gains from the new deal is expected to be greater capital efficiency, as customers will be able to use OTC or exchange-traded derivatives with the same central counterparty.

“Together, BM&FBOVESPA and Cetip have become a much larger company than the sum of their parts, with substantial benefits for the users of the services of both,” said chief executive Edemir Pinto.

“The integration of activities significantly reinforces the business model of the new company, making it more comprehensive for facing a dynamic and internationally more competitive market environment.”