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Ease of execution
Broad access to the market facilitates the process of finding counterparties and price formation, resulting in greater liquidity for trading blocks.
B3 Block Trading Facilities
New block trade solutions available to the market
Three new solutions will be available for block trading: Midpoint Order Book, Request For Quote (RFQ) and Block Book Trade.
Through these new solutions, investors can trade large lots without interacting with the transparent book and without disclosing the orders on Market Data. Trades will be disclosed after execution and will be guaranteed by B3 Clearinghouse.
Trading through these solutions will take place on new instruments and it must respect the minimum lot established by CVM for block trades. Click here for more information about minimum lots.
Check out the details, benefits and differentials of each solution below.
Sign up and follow up the project
Product benefits
Discretion
The order will not be disclosed on Market Data, resulting in greater discretion in the transaction.
Trades guaranteed by B3’s Clearinghouse
The blocks traded in the solutions will continue to be guaranteed by B3’s Clearinghouse and will be disclosed to the market after their execution.
Ease of connection
Midpoint and BBT solutions can be accessed through existing connections with B3. Only RFQ will demand a new connection.
Midpoint Order Book, RFQ and BBT
Check the details and differences of B3’s block trading solutions.
Midpoint Order Book
Request for Quote (RFQ)
Book of Block Trade (BBT)
Certification Contact
Usability workshop
- The Midpoint Order Book solution will enable investors to trade blocks at the Midpoint price (arithmetic average of the best bid and best ask price) from the central order book. To this end, a new type of order will be made available on PUMA, which will be hidden and for which a limit price will be indicated.
- A message will be entered on the Market Data news channel when there is an active Midpoint order for an instrument. For example: “[XXXXM] midpoint order available in the order book”.
- In like manner, a message will also be entered on the same channel when there is no active Midpoint order for an instrument.
- Interaction between Midpoint orders only occurs with the same type of orders. A new instrument characterized by the letter "M" at the end of the ticker will be available.
- A separate PUMA solution allows request for a buy and sell quotation, making the price discovery process more efficient.
- To use the RFQ, you will need a screen developed with the FIX protocol adapted for posting requests and responses and connected to the RFQ System. From this screen, you will send a request specifying the instrument, quantity, nature and trading limit price. The market will be notified of this request via a message on the Market Data news channel, with only the instrument and the time of the request being disclosed, by default. Other market participants may send their responses, whether buying or selling, within a time limit to be defined by B3. After this time, if the trading criteria are met, matching is carried out automatically. After matching, trading will be registered on PUMA and the trades published on Market Data.
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A new instrument will be available, characterized by the letter "R" at the end of the ticker. Prices traded in this solution may have a premium/discount in relation to the central order book.
- A multilateral trading solution for block trades without transparency of orders, whose execution price may have a premium or discount in relation to the price charged in the central order book.
- The new instrument will be available characterized by the letter "Q" at the end of the ticker.
The certification process for the three solutions is now available. If you have any questions, please contact us by email at [email protected] or by telephone on +55 11 2565-5023.
In November 2023, B3 held a usability workshop on block trade solutions, aimed at introducing the rules and demonstrate the use for each solution. Click here to watch the video.
Click here to access the full material with details of the three solutions, including regulatory context, rules for trading and examples
Timeline
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07/26/2022
Other
Workshop to introduce the benefits of the main block trading solutions that will be available to the market. negotiation.
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07/28/2022
Start of market tests
Start of market tests - Midpoint
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08/08/2022
Start of market tests
Start of market tests - Book of Block Trade
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08/30/2022
Start of market tests
Start of market tests - Request For Quote
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09/16/2022
Other
SINACOR Patch 22.3 available for Request for Quote
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11/17/2023
Other
TV B3 Online Workshop
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11/27/2023
Go-live
Available to the market
Technical details
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Catalog changes
BVBG.028.
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Main systems
RFQ System, ePUMA.
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Main related functions
No functions impacted
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Certification roadmap
In definition
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What is the Sinacor version?
v22.3
