The clearing solution is delivered by Cinnober, built on its TRADExpress RealTime Clearing system.

The migration of the equities clearinghouse was the target for phase two of B3’s Post-Trade Integration Project that will consolidate B3’s originally four clearinghouses into one integrated entity (managing equities, derivatives, government and corporate debt securities and FX). Derivatives and OTC products were the first to launch on the new platform in phase one.

With the new integrated clearinghouse, B3 manages risk more efficiently. By analyzing the risk on entire portfolios, the clearinghouse can compensate if an investor has opposite positions in the same underlying asset across product groups and markets. When financial and commodity derivatives, along with OTC products, migrated to the new clearinghouse in phase one, the total systemic benefit in terms of margin release amounted to around BRL 20 billion.

The estimated effect from Monday’s launch of phase two is BRL 21 billion of collateral that was returned to the market with complete preservation of the clearinghouse’s safety system.

Other benefits to market participants from consolidating operating processes, rules, and settlement windows in the merged infrastructure include lower operational costs, cash management optimization, and improved capacity.

“With that launch, Brazil’s financial and capital markets are obtaining new levels of operating excellence,” says Cícero Augusto Vieira Neto, Chief Operating Officer of B3. “By integrating the markets in a single clearinghouse, using a real-time clearing solution we’re able to offer more capital efficient post-trade services, improve daily liquidity, and reduce operating costs. With an infrastructure capable of absorbing ever larger volumes, B3 has paved the way for further market growth, and the system’s flexibility lets us respond quickly to the market’s needs.”