The UDS functionality will be enhanced to pave the way for the development of the Options market. Learn more.View more
New facilities will be available to the market.
Three facilities * will be available for trading blocks with the aiming to offer clients greater ease in executing blocks. They are: Midpoint Order Book, Request For Quote (RFQ) and Block Book Trade.
Trades will match separately. However, once matched, the trader will compose total volume of the exchange.
Check out the details, benefits and differentials of each solution below.
* Project pending of approval by the CVM – Brazilian regulator.
Ease of finding counterparties and price formation, resulting in greater liquidity for trading blocks.
Facilities separated from the regular order book, with greater discretion of the order, not affecting the dynamics of trading and price formation in the transparent market.
All large lot trades will continue to be guaranteed by Clearing B3 and will be released to the market immediately after execution.
Midpoint Order Book, RFQ and Block Book Trade
Check the details and differences of facilities for block trading.
The Midpoint Order Book functionality will be available as a new offer type on PUMA. It is a capped hidden order that will always close at the midpoint price of the central order book.
The price will be given by an arithmetic average of the best bid and best offer of the central book, limited by a price defined by the participant. Midpoint offers interact only with offers of the same type.
These offers will not have Market Data, however, all trades will be published on Market Data.
A separate PUMA solution that allows the request for a buy and sale quotation, making the price discovery process more efficient.
To use the RFQ, the client will need a screen developed with the FIX protocol. From this screen, the client will send a request specifying the instrument, quantity, nature and trading limit price. Other customers are notified about the request and can send their responses, whether they are buying or selling.
If the trading criteria are met, the orders are automatically executed by the RFQ. After matching, the trade will be registered in PUMA automatically.
Trading model in which all orders and operations registered in the trading system for assets and derivatives admitted to trade take place without the availability of the order book. The disclosure takes place anonymously in the execution message (execution report), that is, without identifying the participant's trading code.
The encoding of equities and derivatives will follow the format of the underlying asset plus the letter “Q” at the end of the trading code.
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- Impacted systems:RFQ System, ePUMA.
- Related functions: No related functions.
- Certification script: Certification script available in attachments.
- Sinacor version: Midpoint: No Impact. | RFQ: In definition.
- Catalog changes: No catalog changes.
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