Securities Lending - Eliminating Double Executing Participant’s Approval on Lending Agreement Renewal

Informative

Simplified contract renewal flow in OTC and electronic trades

B3 simplifies the flow of renewing securities lending agreements in OTC and electronic trades

B3 is streamlining its Securities Lending process by eliminating redundancy in the approval flow for the renewal of securities lending agreements with the same executing participant at both the lending and borrowing legs.

This project covers both renewal in OTC and electronic trades and aims to simplify the approval flow. From now on, only one approval from the Executing participant will be required when this is the same at both legs.

As well as speeding up renewal, the project reduces operating costs and improves the user experience in contract renewal processes.

Project Tags:

Listed

In Progress

Securities Lending

Clearinghouse

Product benefits

simplificação do fluxo de empréstimo de ativos

Simplification

Of securities lending agreement renewal in situations where the executing participant is the same at both the lending and borrowing legs.

melhoria no balcão e negociação eletrônica

OTC and electronic trades

Changes will be made to both trading modalities, thus speeding up the securities lending agreement approval.

Lower cost

With the reduction of the operational flow, which will be shortened and faster.

Customer centricity

Improved user experience in the lending agreement renewal flow.

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The project will simplify renewal of securities lending agreements in OTC and electronic trades with a flow that only requires approval from the executing participant, when this is the same at the lending and borrowing legs.

Currently, in the securities lending renewal flow, the participant needs to obtain two approvals in cases where the executing participant is the same at both the lending and borrowing legs. The project will eliminate one of the approval steps by simplifying the operational process and improving user experience.

The project will simplify both trading modalities – OTC and electronic trades – and the flow will only require one approval from an executing participant when it is the same at the lending and borrowing legs

Once the carrying participant approves the renewal, approval from the executing participant will no longer be requested (if this is the same that started the renewal) and it will proceed to the next approval pçhase of the counterparty carrying participant.

What changes in messaging: The executing participant will not receive the BVMF 135.01 message and will not need to send the 138.01 message.