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Greater operational efficiency
With the automatic renewal of OTC securities lending contracts.
Securities Lending - Automatic OTC Renewal
Greater operational efficiency and scale gains
Greater operational efficiency and scale gains
B3 will create an automatic renewal functionality for securities lending contract renewals in the OTC market so that lending contracts are automatically renewed with an adjustment based on the market rate (weighted average of T-1 OTC contracts).
In an effort to automate OTC renewals, B3 assessed user behavior and observed that more than 85% of renewals, currently made manually, are closed at a rate equal to or very close to the average T-1 asset rate, published daily on the B3 portal website and other B3 communication channels. This finding was validated in conversations with the market.
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Product benefits
Scale gains
For trades, reducing the volume of renewal instructions and eliminating participant approvals.
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The automatic renewal of lending contracts simplifies the daily routines of OTC market participants.
Managers: Will no longer handle several trades at once and will only handle specific cases, such as early settlement and renewal outside the market rate.
Executing Participants: Will not need to handle renewals in B3 systems for most trades, which will be carried out automatically, and will only handle specific cases, such as early settlement and renewal outside the market rate.
Carrying Participants and Custodians: Will no longer need to approve most renewals, which will be carried out automatically.
Timeline
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02/28/2025
Disclosure plan
Release plan disclosure
Technical details
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Catalog changes
No catalog changes
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Main systems
RTC
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Main related functions
RTC - Renewal
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Certification roadmap
In definition
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What is the Sinacor version?
No impact
