Material name
Date
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Streamlined renewal
Reduction of operations in electronic trading renewal processes.
Securities Lending – Automatic Renewal with Rate Update in Electronic Trading
Securities Lending – Automatic Renewal with Rate Update in Electronic Trading
Securities Lending – Automatic Renewal with Rate Update in Electronic Trading
B3 will adjust the automatic renewal functionality in electronic trading so that securities lending contracts are automatically renewed with a market rate adjustment (weighted average of OTC T-1 contracts).
Currently, the automatic renewal of a securities lending contract (a functionality that only exists in electronic trading transactions) is carried out at the original contract rate, without rate update.
As lending rates typically vary from day to day, many investors opt to manually renew the contract to update it to new market rates.
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Product benefits
Scale gain
Scale gain in brokerage house trades, eliminating the need for manual renewal of loan contracts.
More about the current manual process that led to the change
The current manual renewal involves a large number of operations between different market players (brokerage house, carrying participant and custodian), which can reach up to six approvals for just one contract
Upon assessments of contract data validated in conversations with the market, we noticed that 88% of manual renewals made for contracts via electronic trading renew at a rate equivalent to an average T-1 contract.
Timeline
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09/30/2024
Disclosure plan
Release plan disclosure
Technical details
Catalog changes
No catalog changes
Main systems
RTC
Main related functions
No functions impacted
Certification roadmap
In definition
What is the Sinacor version?
No impact
