B3 (Brasil, Bolsa, Balcão) is one of the world’s largest financial market infrastructure companies, providing trading services in an exchange and OTC environment. Their scope of activities includes the creation and management of trading systems, clearing, settlement, deposit and registration for the main classes of securities – from equities and corporate fixed income securities to currency derivatives, structured transactions and interest rate, and agricultural commodities. B3 also acts as a central counterparty for most of the trades carried out in its markets and offers central depository and registration services.
Over the past few years, B3 identified a relevant increase in the volume of trades going through their platform, specifically with regards to fixed income transactions. This resulted in a significant increase in middle-office workflows which their current systems could not process and led them to consider developing a software solution in-house to meet growing demand. Since post-trade systems for fixed income are generally manual and legacy-based, building a solution would be time consuming, resource intensive, and extremely expensive.
B3 was in the market for a solution that would address their multi-faceted post-trade systems for fixed income transactions. Since most of the systems used within the fixed income market are legacy-based, the solution required had to be built in a manner that would integrate with existing systems. B3 selected Genesis to provide a Proof-of-Concept (PoC) to process and test millions of real-time post-trading allocation messages, in a low-latency and high-throughput secure and performant environment. Genesis suggested supercharging their developers using a buy-to-build solution. This new post-trade solution would focus on legacy integration and innovation, as well as the automation of manual processes.
Since implementation, B3 has commercialized the solution to its members and users. The integration capability allows for the continuous functioning of legacy systems, and automation has made it possible to sustain a greater volume of trades, without an increase in headcount to support the rapid market growth.