RLP Expansion

Informative

Greater liquidity in the equities market

RLP (Retail Liquidity Provider) orders were made available to the equities market in January 2022. This mechanism allows brokerage houses, investment banks, multiple banks, or other market participants hired by brokerage houses to act as a counterparty to buy and sell orders of shares from their retail clients. The initiative has brought greater liquidity for clients to carry out their trades in the markets operated by B3.

B3 has analyzed the effect of RLP on 20 assets over the past four years and decided to expand this functionality to the remaining equity assets traded on B3. The expansion will be done in phases, with a one-month interval between the launch of each phase. The goal is to allow intermediaries to adapt their capacity and infrastructure to the new assets.

The expansion request, however, is still under review by the regulator and, if approved, will follow the implementation schedule found below.

Project Tags:

Trading

Listed

In Progress

Listed

Product benefits

Increased liquidity

Since RLP orders act as a counterparty to trades executed by retail investors, intermediaries will bring greater liquidity to the market.

Price improvement

Assures to retail investors that the trade price will always be equal to or better than the best price available in the central order book.

Expansion of RLP portfolio

Greater diversity of assets in which intermediaries can act as liquidity providers.

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B3 will gradually expand the number of tickers in which intermediaries can act as liquidity providers.

RLP expansion will be phased so that intermediaries can adapt their capacity and infrastructure to the new equitu assets included in the RLP. Here's how it will work:

Phase 1: Ibovespa assets not currently included in RLP orders
Phase 2:
- IBOV, SMALL and S&P500 ETFs
- Crypto and commodity ETFs and ETF BDRs
- Most relevant sponsored and unsponsored BDRs
Phase 3: Fixed Income ETFs and Fixed Income ETF BDRs
Phase 4: Fiagros and other Equity ETFs

The phased expansion of RLP to other equity assets creates value for the market as a whole, especially for retail investors and for intermediaries:

Greater liquidity for a larger number of assets
Improved price for retail investors
Increased portfolio of assets eligible for RLP

The RLP order was developed together with the market, through a public consultation process, with the aim of enhancing Brazilian capital market regulation and encourage the growth of individual investors served by the retail areas of banks and brokerage houses. The new order type is exclusively for aggressor orders, namely, those at which the best bids and asks are traded.

Learn more.