Strategy Trading – UDS Improvements and Continuous UDS Trading

Informative

Negociacao de Estrategias - Aprimoramentos UDS e Negociacao continua de UDS.jpg

Enhancements will bring greater efficiency to the development of the Options market

With the UDS (User Defined Spread) functionality, users may trade in the Options market without facing inefficiencies such as execution risk and lack of transparency. Investors can create their own strategy and B3 provides a specific order book for this strategy to be traded.

There are four enhancements currently being developed: make the Leg Status vs. the UDS Status independent, implement trading tunnels to eliminate the need for trades to be submitted to auctions, strategy ratios up to 99, and the possibility of calling UDS in blocks.

Project Tags:

Completed

Trading

Cross Market

Listed

Product benefits

Safety

Execution Risk on Options strategies eliminated.

Transparency

Visibility to the market on which strategies are traded daily.

Customization

Creation of specific order books for trading Options strategies.

Learn more about the strategies market and UDS

The improvement will benefit banks, asset managers, non-resident investors, brokerage houses and other interested profiles

Currently, to trade strategies in the Options market, investors are faced with some inefficiencies such as execution risk and lack of transparency.

The UDS functionality allows investors to create specific order books for the strategies they intend to trade in the Options market.

The strategy market is a huge market with the potential to grow even further. These improvements, with deliveries starting in 2022 and expected to finish in early 2023, are one of the deliveries that will pave the way for the market to fulfil its potential.

The following are the expected enhancements:

Implement trading tunnels (continuous trading)
Strategy ratios up to 99.
Possibility of calling UDS in blocks.
Make the Leg Status vs. UDS Status independent.

Upcoming Implementations

UDS – U.S. Dollar Options Strategy Pricing

In the first quarter of 2023, B3 will bring improvements for those who trade more than one U.S. Dollar Option leg with cost reduction. From this delivery onwards, we will charge a single fee that will consider all legs of the strategy for the final price.