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Operational efficiency
With more efficient order changes and deletions, which minimizes computational processing and reduces latency.
Binary UMDF: Order Book Management Based on Price/OrderID
Book management by priority makes operations more efficient and global
Book management by priority makes operations more efficient and global
By aligning processes, products and services with the best practices in the world's leading stock exchanges, B3 is improving its order book management, which will now be based on priority rather than position.
The change particularly serves institutions and high-frequency traders (HFTs) using high-speed algorithms and structures to trade assets, and also market makers who consume market data from major stock exchanges around the world.
B3 will continue to use the Market By Order (MBO) feed, and the changes will have minimal impact on its current messaging structure. Priority will be determined by order ID (specifically the secondary order ID) for all orders at the same price level.
Additionally, although unrelated to order book management, B3 will add the current transaction time, which is present in the messages on the order entry side, to the related market data messages.
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Product benefits
Resilience
Order book consistency is less affected by the loss of some order messages.
In line with global standards
Market data specifications will match those of other exchanges from an order management perspective, making it easier for existing solutions, which may not have been adapted to process positions and now handle our market data.
Natural refresh
Feasibility of a natural refresh approach. When previously unreceived orders are deleted, the order book becomes more consistent.
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Priority model ensures greater resilience and integration with global market data systems.
• Management of public books will be based on priority (order ID) for same price level. This model minimizes latency and in line with global market data best practices.
• Investors will have greater flexibility and ease in integrating systems based on international standards.
• Reduced latency in market data publishing: disabling the position publishing, the overall latency of B3’s market data service will decrease. This means that a higher percentage of market data messages will arrive before the related execution report messages.
• B3’s market data specification will be in line with the specifications of other international exchanges for order management. This allows existing solutions that were not adapted to process positions to process our market data with less adaptation effort.
High-Frequency Traders (HFTs), Market Makers and all participants who demand greater compatibility with global standards, besides providing greater efficiency and resilience in market data processing.
Timeline
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03/28/2025
Disclosure plan
Release plan disclosure
Technical details
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Catalog changes
Binary UMDF
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Main systems
Market Data Platform
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Main related functions
To be defined
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Certification roadmap
In definition
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What is the Sinacor version?
No impact
