10/22/20

Securities Lending Electronic Trading

Securities lending electronic trading will be available at B3 from October 26

Securities lending electronic trading will be available at B3 from October 26. As well as brokerage houses, asset managers will also be able to trade directly in this market using the web trading platform (screen) or API (Application Programming Interfaces).

The platform model was built together with the market with the purpose of bringing greater transparency, better pricing, liquidity and efficiency gains to everyday trades.

During the project’s development, several operational improvements were implemented at different stages of the securities lending activity. The new features include, for example, a standardized contract for on-screen trading, automatic renewal, settlement by multilateral balance when contracting the loan, trades with T0 or T+1 settlement, and the possibility of using a master account, among others.

The assets available for trading are stocks, units, ETFs, and Brazilian Depository Receipts from foreign companies, the so-called BDRs. Other securities will soon be available. As well as acting as an administrator, B3 also acts as a central counterparty for trades to the return of assets to their owners at the end of the contract.

More information for decision-making 

To standardize the exchange of information between the buy-side and the sell-side, B3 created a new message flow and a screen on iMercado containing data on generated contracts, brokerage fees and amounts to be settled. For institutions that are already allowed to use our trading systems, access will not be changed.

Trading

Electronic trading is done on B3’s system via web platform or API. When contracting the service, institutions can adjust their preferences, save portfolios and use filters to speed up trading.

  • Web trading platform – Allows hit-and-take trades, whereby the lender and the borrower enter their orders in the trading book or choose an order already available to execute the trade. There is no automatic execution. All is done without the need for system development, thus reducing your IT costs.
  • Securities Lending API – Enables market data queries (quotes) and order routing. Previously it was available only to asset managers and foundations. Now connection via API can also be made through service providers and other institutions wishing to develop and integrate their systems with B3’s systems.

Please note that OTC trading will continue.

For further information, please contact your RM.