- The RLP order is not visible in the central order book. It can only be seen by the brokerage house that entered it. It immediately becomes transparent for the public upon trade execution.
- It is used exclusively to execute retail clients’ (individuals) trades.
- When the trade is not executed, the RLP order is cancelled at the end of the day.
- The price is continuously and automatically adjusted by the trading platform, to provide the individual investor the best liquidity and price conditions. In other words, when executing a deal, it will always have the same or better price than that available in the central order book.
- When the prices are the same as those in the central order book, those awaiting trade execution will be prioritized if they offer sufficient quantity to match, fully or partially, the order of the brokerage house’s retail client.
- The number of traded contracts cannot surpass 15% of the total, considering the methodology detailed in this document and reviewed periodically.
Retail Liquidity Provider (RLP)
The RLP order will available in B3’s PUMA Trading System as of August 5, 2019. It allows brokerage houses, investment banks, multiple banks or another investors to be counterparty to their retail clients’ buy and sell orders for securities, creating greater liquidity for clients to trade in the markets operated by B3.
RLP was developed in a public consultation process with the market, with the aim of enhancing Brazilian capital market regulation so as to encourage an increase in individual investors served by the banks and brokerage houses’ retail areas.
This new order type is exclusively for aggressor orders, in other words those at which the best bids and asks trade. Initially, only mini futures contracts in US dollars and in indices will be traded.
- How it works
- Benefits and advantages
- Greater liquidity for the market and sound working of the price formation process.
- Guarantee for the retail client that the price of the transaction will always be the same or better than the price available in the central order book.
- How to join
Adhesion with RLP is not mandatory. If the individual client wants its aggressor orders to be executed against RLP orders it must authorize the brokerage house to do so.
- Who can trade in the RLP environment?
Only Full Trading Participants (FTPs) can enter RLP order to the PUMA Trading System. They may, however, allow other participants to trade in their place, consolidating their flow of retail orders.
- Available instruments
- Maximum allowed number of contracts for RLP
Maximum percentage of retail volume to be executed for RLP
Month WIN (Future) WDO (Future) August / 2019 27% 50% September / 2019 35% 54% October / 2019 32% 45% November / 2019 32% 43% December / 2019 32% 42% January / 2020 34% 41% February / 2020 31% 43% March / 2020 33% 45% April / 2020 36% 41% May / 2020 29% 35% June / 2020 31% 37% July / 2020 31% 38% August / 2020 30% 38% September / 2020 30% 40% October / 2020 32% 39% November / 2020 31% 39% December / 2020 31% 37% January / 2021 32% 38% February / 2021 32% 38% March / 2021 32% 40% April / 2021 31% 38% May / 2021 33% 36% June / 2021 32% 38% July / 2021 32% 40% August / 2021 31% 38% September / 2021 33% 40%
- Daily CAP monitoring for RLP
Month: September_2021Month: July_2021Month: July_2021Month: June_2021Month: May_2021Month: April_2021Month: March_2021Month: February_2021Month: January_2021Month: December_2020Month: November_2020Month: October_2020Month: September_2020Month: August_2020Month: July_2020Month: June_2020Month: May_2020Month: April_2020Month: March_2020Month: February_2020Month: November_2019
- Risk metrics associated with regular trading and day trading
Period: April/May/June_2021Period: March/April/May_2021Period: February/March/April_2021Period: January/February/March_2021Period: December/January/February_2021Period: November/December/January_2021Period: October/November/December_2020Period: September/October/November_2020Period: August/September/October_2020Period: July/August/September_2020Period: June/July/August_2020Period: May/June/July_2020Period: April/May/June_2020Period: March/April/May_2020Period: February/March/April_2020Period: January/February/March_2020Period: December/January/February_2020Period: November/December/January_2020Period: October/November/December_2019Period: September/October/November_2019Period: August/September/October_2019Period: July/August/September_2019Period: June/July/August_2019Period: May/June/July_2019Period: April/May/June_2019
- Daily CAP monitoring for RLP
- Find out more
Read the Public Consultation about the RLP.