CI - Automatic Return of Subscription Rights

Informative

Greater efficiency in the return of subscription rights in securities lending

Brokerage houses trading at B3 will now have access to automatic return of subscription rights. The new functionality will automatically reflect – through B3's Real Time Clearing (RTC) system – the rights returned by the borrower directly to the lender, i.e., individual investors.

This improvement eliminates the need for manual processing, while reducing operational bottlenecks and errors. In practice, the process will become more agile, standardized and reliable, allowing operational teams to focus on higher value-added activities, while simultaneously increasing efficiency and transparency in the flow of securities lending events.

Project Tags:

Listed

In Progress

Securities Lending

Clearinghouse

Product benefits

Automation

Elimination of manual processes through the automatic return of subscription rights.

Convenience

Significant reduction of operational bottlenecks in brokerage house routines.

Efficiency

Greater agility, standardization and reliability in operational flows, with lower error risk.

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Automation reduces operational bottlenecks and eliminates manual processes at brokerage houses.

When subscription rights are returned by borrowers in the securities lending market, the RTC system will automatically reflect this return in the account of individual investor lenders.

RTC (Real Time Clearing), a post-trade service of B3 Clearinghouse, handles the registration, acceptance, clearing, settlement and counterparty risk management of derivatives, commodities, equity and fixed income trades, as well as securities lending transactions.