Line 5.0 – SPVD

New aggregated metric aims to limit the financial value of sales in the spot market per investor.

LINE Clearing trading risk system started to incorporate a new metric, the SPVD (Short Selling Potential Balance), which allows controlling, in an aggregated way, the sales of assets in the spot market made by investors.

A The metric considers the trades carried out on the day, such as offers, trades and exercise of call and put options, enabling the control of limits on D+0 in the spot market. It will also allow the monitoring of the limits assigned to the investor in LINE Clearing and LINE BTB (securities lending).

Financial value of spot market sales may be limited by investor

New SPDV metric will be considered in monitoring the limits assigned by market participants and also in calculating residual risk violations

The participant may increase the SPDV limit above the residual risk allowed for sales in the cash market. For this, you will need to make a prior request to our risk teams. To be validated, these operations must mitigate the risk of short selling, as well as ensure the existence of an asset balance at the Central Depository, settlement of positions and exercise of options.

The SPVD replaces the adoption of control carried out through the SPVI metric, which is the exchange limit applied according to the economic capacity of the chain.

LINE Clearing is a tool integrated into the trading platform (PUMA). It is used by market participants operating within our environment to define pre-trading limits and monitor the activities of investors. In addition, all investors who send or have their orders sent to the trading system are LINE users, as they have their limits validated before sending the order to the matching engine.

Technical details