Use of trading robot software would be sanctioned under bill

- Monday, November 7, 2011

Use of trading robot software would be sanctioned under bill

Brazil's congress is debating bill 1592/11, which proposes putting an end to use of "robots" in government electronic tenders for products and services, the lower chamber said on its website.

"Robots," or trade robot software, are an automated order execution software that automatically places bids directly into a trading platform or procurement portal without any human intervention. In this way, the supplier manages to stay ahead of other competitors in terms of bidding prices.

The bill, promoted by congressman Geraldo Resende, looks to sanction companies using robots, preventing them from participating in federal procurement processes for two years.

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According to Resende, use of trade robot software does not directly affect the public sector, but it brings great inequality to the private sector since not all companies have access to these systems.

The bill is under review by the science and technology, communications and IT, finance and taxation, and constitutional, justice and citizenship committees.

Use this link to see the full bill.