Improvements to the Book of Block Trade for cross order block trades

Informative

Greater autonomy and stability for brokerage houses

B3 is improving its Book of Block Trade (BBT) – a block trade solution with a premium and discount – through a new cross order functionality. Just like in the central order book, brokerage houses can now simultaneously register buy and sell orders for a trade without third-party interference.

The BBT presents a new feature whereby cross orders can be registered atprices above or below the last trade in the central order book, as long as they respect the rejection tunnels in the BBT itself.

The transaction will follow the same flow already known to the market: brokerage houses will continue to send cross orders in the usual way, using only the ticker ending in “Q” for BBT. The same thresholds applied to cross orders in the central order book will also apply to BBT, considering the total volume of cross orders in both books.

If these thresholds are reached, the functionality will be temporarily suspended in the BBT to ensure control and stability, and will be reactivated as soon as the volume returns to normal parameters.

Project Tags:

Trading

Listed

In Progress

Cross Market

Product benefits

Safety and predictability

Brokerage houses can now simultaneously register buy and sell block trade orders. This brings less risk and greater control to block trading.

Greater flexibility

To block trades with a premium or discount offering expanded possibilities in the BBT.

Easy of use

Cross orders can now be sent using the same process currently used with the asset ticker in the BBT.

Greater stability

The application of the same thresholds in the central order book facilitates monitoring cross order volumes in the BBT, thus preserving market integrity.

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The new functionality will allow brokerage houses to simultaneously register a buy order and a sell order for an asset at the same price, ensuring greater control over block trades with a premium or discount.

Cross orders in the BBT adopts the same trading rationale already used for cross orders in the central order book: brokerage houses will continue to send the order through the same mechanism, only informing the asset ticker in the BBT (ending in “Q”). The new functionality will fully respect current block trade rules, including the minimum mandatory lot size defined by the CVM (Brazilian Securities and Exchange Commission).

As with other BBT transactions, cross orders will be disclosed in Market Data through the combination of the tags “PT” (Block Book Trade) and “X” (Cross) in tag 277 (TradeCondition), ensuring standardization and transparency for the market.

Execution will only occur if a cross order has the best available price in the BBT. If better orders exist in the order book, the cross order will be rejected with a generic message, without revealing details of the counterparty.
Current thresholds for cross orders will also be applied to the BBT, ensuring market control and stability.
If the cross order threshold is exceeded, besides the increase in the minimum lot size already foreseen for the central order book, there will be a temporary suspension of the functionality in the BBT. As soon as volumes return to acceptable levels, the functionality will be reactivated.

BBT is a solution focused on continuous block trades with execution prices traded at a premium or discount in the central order book. Learn more.