Unified Rate and Outlier Treatment

Informative

Greater accuracy in the lending market benchmark rate

To improve the functioning of the securities lending market, B3 will implement a new benchmark rate model. The new rate will combine all trading types in this market into a single indicator: OTC, electronic trading with same-day settlement (T+0), and electronic trading with next-day settlement (T+1).

The unified rate will replace the current rate, which only considers OTC trades executed on the previous day (T-1). Therefore, the market will have a more comprehensive and fair trading reference on the following day.

In addition, B3 will also provide outlier treatment, disregarding both subsidized rates and values significantly outside the market standard, thus avoiding unnecessary distortions in rate formation.

Project Tags:

Listed

In Progress

Securities Lending

Pricing

Product benefits

Representativeness

The unified rate reflects all trading methods (OTC, electronic trading T+0 and electronic trading T+1).

Transparency

The market now has a more transparent lending indicator.

Fair rate

The benchmark rate considers not only the OTC rate, but also the rates traded in all models on the previous day, including outlier treatment.

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The new unified rate increases transparency and efficiency in the securities lending market.

Currently, the benchmarke lending rate used by the securities lending market is based only on the previous day's OTC (T-1) trades. With this change, B3 will now calculate a unified rate that will consolidate the rates traded in all modess (OTC, electronic trading T+0 and electronic trading T+1). This new rate will be the only official benchmark rate for the market, offering a more complete and fair view of trading conditions.

Securities lending is a transaction whereby an investor who owns an asset (lender) lends it to another investor (borrower) in exchange for a fee. So, the borrower can use these assets, for example, to make a short sale or other strategies, but must return them within the agreed-upon timeframe. B3 acts as a guarantor of this return, providing security for both parties.

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