The Block Trade Capture tool seeks to expand the processing capacity of allocation messages at B3 Clearinghouse

The Block Trade Capture tool seeks to expand the processing capacity of allocation messages at B3 Clearinghouse with an average reduction of 90% in the volume of account registrations served by the solution. The tool was launched in late 2022 and is currently used by 6 brokerage houses with more than 70 active accounts.
Banco Bradesco, a pioneer in adopting the new solution, celebrates its operational gains. From 2.5 million trade lines per day, the bank reduced this number to 1.6 million by using Block Trade Capture. This means a 36% reduction in the number of registrations. “It is a very significant reduction,” celebrates José Thiago de Brito, operations analyst at Bradesco.
The solution works as follows: A buy line and a sell line are generated at B3 Clearinghouse trading system for each trade. Through the Block Trade Capture tool, trades that share the same data are grouped under a single key – same trading date, same participant, same account, same price, and same traded instrument. In other words, instead of creating two individual registration lines for each trade, blocks of trades are created based on similarity with the capacity to reduce from 100 registrations to 6 in some cases.
 “The more participants join the Block Trade Capture, the better it will be for the market, as the number of messages are greatly reduced. How? At the end of the day, everything gets complicated when it comes to sending confirmations and generating a position,” says Thiago referring to sending trade confirmations at the end of trading sessions. “We used to close in 25 minutes and now it only takes 14, 13 minutes,” explains the analyst, who believes there will be an even greater scale gain for Bradesco in the near future: “If our desk traders manage to carry out the monitoring they need, we would probably reduce it to a milestone of 800,000 registrations a day,” he says.
Thiago also highlights how easy it was to join the solution with no interruption to business activities. “There was no impact on our clients during the transition. We didn't even get to notify them of the change. To them it doesn't matter if it is one trade or 50 trades, the important thing for them is to trade and receive the confirmation. And we had very good support from Sinacor and the settlement team,” he adds.
Award-winning innovation – In late November, B3 was awarded “Best Technological Innovation by an Exchange or Clearinghouse” for its Block Trade Capture tool.
The award was given at the FOW International Awards 2023, which is organized by Futures and Options World (FOW) magazine and edited by the Global Investor Group, a communications group specialized in covering the UK capital and derivatives markets.