Introduction
Integrated into the trading platform (PUMA), LiNe is a tool that will allow trading participants to set trading limits and monitor investors operating in the markets managed by B3, regardless of the form of access (DMA, desk or advisor).
Continuing the evolution of trading risk systems, LiNe Clearing is being developed, which will apply all aggregated metrics (SDP, Risk, SFD), in addition to a new risk metric that will assess the sale balance (SPVD). In this way, such metrics, which are currently calculated in real time and therefore are on the critical path of the supply, will be transferred from LiNe to LiNe clearing, starting to be calculated in near time. Added to these changes are the addition of positions (Opening Portfolio) at the beginning of the day, which will aggregate investor information on various exchanges, in addition to other features that will be disclosed, in due course, on the project's website.
Who is it for?
LiNe Clearing is intended for PNP, PN and PL that need to define trading limits for their investors. They will be the limit setting agents.
Additionally, all investors who send or have their orders sent to the trading system are LiNe Trading users, as they have their limits validated before sending the order to the trading hub.
Metrics
The metrics evaluated in the Clearinghouse: SFD (Daily Financial Balance), SDP (Potential Debt Balance), Risk and SPI (Potential Balance by Instrument).
Project Scope
Here are defined three phases of the project that will be developed and implemented incrementally in production:
- Metric Segregation (LiNe Trading X LiNe Clearing) – Available in Production
The first phase has the objective of separating the aggregate metrics from the critical path of the offer, so these metrics will be allocated in LiNe Clearing, in addition LiNe will have the start of day position and a new aggregate sales metric.
- New Risk Measures + Intraday Position Integration
In this last phase, several new risk measures will be created in LiNe Clearing, these measures will be aggregated and will have the objective of helping trading participants in risk management, in addition to these new risk metrics, LiNe will have position integration with the post trading (RTC).
- Affinity for Matching Engine
This phase aims to create LiNe trading affinity with each Matching Engine, so in this phase dedicated risk centers will no longer be necessary.