B3 Overview

The B3 exchange, formerly BM&FBOVESPA (BVMF), was established in 2008 by a merger between the São Paulo Stock Exchange and Brazilian Mercantile & Futures Exchange. B3 is located in São Paulo, Brazil and offers customers access to trading stocks, currencies, commodities, and futures on one exchange.

Matching Engine

B3 provides matching via their Platform Unified Multi Asset-class (PUMA) electronic trading platform and matching engine based on the CME Globex platform. The PUMA matching engine is located in São Paulo, Brazil.

Matching Algorithms

B3 matches orders by price/time priority. Lower offer prices take precedence over higher offers prices, and higher bid prices take precedence over lower bid prices. If there is more than one bid or offer at the same price level, earlier bids and offers take precedence over later bids and offers, respectively.

Under price/time priority of orders, a bid is filled at the best price by the earliest entered offer at that price. If additional contract units are needed to fill the bid, then the next oldest offer at that price is matched until all of the liquidity at that price has been exhausted. Matching begins at the next best price until the order is completely filled.

Desk Traders and DMA Traders

B3 identifies traders as either “Desk Traders” or “DMA Traders” in their system. These roles are defined as follows:

  • Desk Trader: A broker who is a member of brokerage house that has a trading membership with B3.
  • DMA Trader: Any other trader who is not a member of a brokerage house, but is still required to have a trading and clearing relationship with an exchange-approved firm.

Desk Traders and DMA Traders both have “DMA” access to the exchange via any of the exchange-approved connectivity options. Both enter orders directly into the system via TT, which distinguishes between Desk Trader and DMA Trader sessions.

B3 requires the entering trader or executing trader to be identified in the FIX messages for all order actions sent to the exchange. B3 defines these roles as follows:

  • Entering Trader: a DMA or Desk Trader who initially submits an order.
  • Executing Trader: a Desk Trader who is modifying an existing order on behalf of another trader.

To meet B3 requirements, TT identifies the entering trader or executing trader in FIX messages for each order action sent to the exchange.

Connectivity options

The TT® platform supports connectivity to the exchange, so you do not have to contact the exchange regarding connectivity options.