market architecture of selected stock exchanges in ... - Gilles Daniel

62Instead of registering orders, the BOVESPA may use a recording system to keeptrack of all communications between clients and their trading desk providing: A Record of every call including the date and start time; Client identification, if applicable the one of its agent and the brokerage firm’strader; The order attributes, if buy or sell and its type; The effective period of the order; Quantities and prices of the assets, if applicable; Control over all records made each day.Order RoutingBOVESPA provides facilities available for individual and institutional investors tosend orders directly to its order book. Member brokerage houses can offer anautomatic and direct access to the BOVESPA’s MEGA BOLSA trading systemusing different routing alternatives: Retail investors may use a gateway for internet access known as Home Broker.Individuals are allowed to send orders via the internet accessing their brokeragefirm’s website. Institutional investors may send their orders directly to the order book through asimilar mechanism known as Institutional Connection.In addition to the order routing possibilities, BOVESPA adopted a Straight ThroughProcessing (STP) concept, through which the entering of the order, its execution, toits final and irrevocable settlement is conducted fully electronically. Investors willingto trade have to “be previously registered and authorized by the brokerage firm andeach trade has to be identified with the investor identification code. BOVESPA doesnot establish any technical limits (minimum or maximum) for the orders;nevertheless, each Brokerage Firm has the ability to establish specific trading limitsaccording to the credit limits for each investor” (BEST, 2005b, p. 24).