ICE Link

Looking into global best practices, B3 provides an innovative solution to the Brazilian bond market. The new tool, called ICE Link, provides more efficiency to the post-trade workflow, making these activities faster, safer and more standardized.

ICE Link acts in the operational cycle of transactions, right after the trade is completed, for both government or corporate bonds. Therefore, all secondary market trades closed or confirmed on the Trader platform are always captured by ICE Link. With this new tool, essential procedures on the trade workflow are easily performed, such as exchange of accounts allocation, as well as confirmation and integration of complete transactional data.

 The system is divided into two levels: the previously available Middle Office, focused on allocations; and the new supplementary Back Office, in which operations will be integrated to internal systems and the registration systems of B3 (corporate bonds) and SELIC (government bonds).

ICE Link is already extensively used in the CDS global market, connected to hundreds of institutions. It was 100% adapted to Brazil and its effective implementation will contribute to a breakthrough in the front–to-back workflow, opening room to approach and address several difficulties in the post-trade of Brazilian securities.

The new feature is the result of a partnership between B3 and IntercontinentalExchange (ICE), one the world’s largest derivatives exchange and clearinghouses, who is also a shareholder at B3. The solution spearheads the U.S. OTC CDS (Credit Default Swaps) market and was adapted to the needs of Brazilian institutions that operate in the Fixed Income market, including banks, brokers and fund managers.