Nasdaq and B3 partner to build new clearing platform for Brazilian market

Nasdaq and B3, the company that manages the São Paulo stock exchange, announced a multi-year partnership to develop a new clearing platform for the Brazilian stock market. The tool would be able to meet the needs of a “rapidly expanding market” for the next decade or more. 

Clearing platforms are the structures responsible for registering, clearing, settling, and managing the counterparty risk of transactions executed in financial markets. The new platform will serve all markets currently settled through the B3’s Clearinghouse, including stocks, real estate funds, BDRs, asset lending, stock options and terms, financial derivatives, and commodity derivatives.

Nasdaq already provides real-time clearing solutions to more than 20 central counterparty clearing houses worldwide. The partnership with B3 — specifically between both the engineering teams of both organizations, will allow Nasdaq to access the Brazilian exchange’s “unique experience” in operating a high-volume and diverse market, which is essential to enhancing its post-trade products and solution capabilities.

Rodrigo Nardoni, B3’s chief technology officer, said in a press release that the Brazilian exchange’s platform upgrade will be done in phases, gradually and without disrupting the market. “Through a phased migration process, B3 will gradually transform its clearing house solution to a new platform, reinforcing our strategic commitment to technological innovation and capturing direct benefits for our clients,” stated Mr. Nardoni.  

The last major modernization of the system took place in 2017, with the completion of the integration of the various clearing houses onto a single platform. 

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