Today Custodians are unable to correctly validate the manager's orders, since they do not have sufficient information to identify the Give-up Participant in securities lending trades. An optional field will be created whereby the Custodian receives data on the Give-up Participant’s ID for trades executed in the securities lending market, thus facilitating their daily trade validation routine. Such data will be available via messaging and via electronic trading platform.

In seeking to make life easier for users of B3’s trading platform, we now make a daily file available directly on B3 portal with relevant data on tradable instruments. The file consists of an exact copy of the Market Data SecurityList and contains data on the minimum size, in terms of quantity, for instruments tradeable in block trade solutions (Midpoint, BBT and RFQ). This data is updated daily per asset considering the minimum size in financial value defined by the regulator and the asset’s closing price, which until then was only disclosed on Market Data. Now queries can be made via file directly on the B3 portal, simplifying the trade for users of block trade solutions. Check the file now: https://www.b3.com.br/en_us/market-data-and-indices/data-services/market-data/historical-data/newsletters/search-by-trading-session/search-by-trading-session/

The submission of orders for block trade solutions Midpoint Order Book (Midpoint) or Book of Block Trade (BBT) via the ePUMA trading station has undergone improvements. The goal is to enhance the user experience and streamline the routine. The update has brought greater ease for investors as the number of fields that need to be filled out when submitting an order will be reduced. Furthermore, the tool automatically locks fields that should not be filled out, thus minimizing the chance of errors. Here's how it works: #Automatic Filling: When the instrument symbol ending in "M" (Midpoing) is entered in the ticker field, the field "Type of market" will be automatically filled as Midpoint, thereby eliminating the need for the user to fill out two fields. # Error Prevention: When the user enters the instrument symbol ending in "M" (Midpoint) or "Q" (BBT), fields that do not need to be filled out will be locked, preventing potential input errors.

B3 has implemented a change to the “expiration code” field in the shortened version of the BVBG.031 (DailyFeeUnitCostReport) file, which is used to inform market participants about the unit costs of fees applicable to trades. From now on, the shortened version, sent to options markets 3 and 4, will only include the month code and the year code, thus reducing the file size. Previously, this field also contained the option type and an alphanumeric sequence. This change was made to accommodate clients who were experiencing difficulties with the current file size.

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BVBG.031.01_BV000252202410021308000000002128668.xml

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2024/10/18

xml

11MB

As of August 26, 2024, events of Credit Notes (NC) under a registered regime, with private issuance and simplified flow will be generated and settled by default in the gross mode. The transfer follows the same flow already adopted by market participants in the takeout request (transfer from multilateral settlement to gross mode settlement). The hours for entering unit prices for these events remain unchanged.

Following the implementation the Private Securities Post-Trade Solution (Flow II), B3 identified the need to increase the number of decimal places in the “price” and “quantity” fields from 6 to 8, in the case of Closed-End Fund Shares (CFF) trades. We will therefore adjust the allocation process carried out in Real Time Clearing (RTC) to the flow of the previously existing product. Therefore, these trades can also be allocated through the new solution, which will now have full adherence to the products already integrated with it, namely, Debentures, Real Estate Receivables Certificates (CRI), Agribusiness Receivables Certificates (CRA) and Closed-End Fund Shares (CFF).

In the Securities Lending Subscription process, the "End Date", which refers to the last day for returning subscription rights from borrower to lender, will be removed from the RTC - Subscription Management Module screen. There will be no change to the Subscription Surplus event.  The BVBG.098 file will undergo changes where the respective field becomes optional.

B3 will implement an optional field in securities lending to provide custodians with visibility of the give-up participant ID for executed trades. The information will provide greater transparency and speed up the validation of orders entered by managers. It will be available both via message and on the electronic trading platform, streamlining and improving the validation of offers. For technical details, see the catalog on the project page.

Currently, some rollovers have a differentiation in Tag 762 (e.g. Tag 762 = 140 – Financial Rollover, 141 Agricultural Rollover, etc.) identifying the different types of rollovers while EDSs only come with Tag 762 = 90 – Strategy, without this distinction. Therefore, we will include a characterization domain, for example (Tag 762 = xxx – DV01 Neutral and UP Neutral).

Improvement of the UDS interface will occur when strategies with Options are created. Previously, users had to enter all relevant option data ("Expiration", "Underlying Asset", "Type" and "Strike Price") so that the option ticker could be generated by the system. With the implementation of this improvement, users will only need to enter the option code in the specific field on the strategy creation screen. This will lead to automatic filling with all the data needed to create the UDS. However, the "C/V" (call or put) and "QtdLote" (quantity) fields must be completed. With the change, the "Code" field will be repositioned to the left of the screen, right after the "Market" field.

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Exemplo nova funcionalidade UDS.pdf

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2024/03/21

pdf

84KB

Specific enhancements for the 2024 peak season include new treatment for votes originating from the same investor and custodian, which were previously rejected for duplicity. Performance improvements were also implemented to generate the vote map. In addition, B3 made improvements to the CICORP system, including an adjustment to minimize errors when selecting ISIN numbers during Distance Voting Bulletin (BVD) registration. None of these changes require market adaptations.

B3 has changed the concentration limits for open positions for the lending, forward and options markets. These limits are calculated based on the free float of shares and will now be 10% for each investor or group of investors, considering each market separately. Furthermore, groups of instruments will be created to aggregate positions from these markets, with a 15% limit applied to the free float. This means that if an investor uses 10% of their portfolio in one of the markets, only 5% will be available for allocation to another market within the group. The change aims to offer greater flexibility to participants, allowing for a better distribution of limits according to their investment strategies.