market architecture of selected stock exchanges in ... - Gilles Daniel
market architecture of selected stock exchanges in ... - Gilles Daniel
market architecture of selected stock exchanges in ... - Gilles Daniel
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62Instead <strong>of</strong> register<strong>in</strong>g orders, the BOVESPA may use a record<strong>in</strong>g system to keeptrack <strong>of</strong> all communications between clients and their trad<strong>in</strong>g desk provid<strong>in</strong>g: A Record <strong>of</strong> every call <strong>in</strong>clud<strong>in</strong>g the date and start time; Client identification, if applicable the one <strong>of</strong> its agent and the brokerage firm’strader; The order attributes, if buy or sell and its type; The effective period <strong>of</strong> the order; Quantities and prices <strong>of</strong> the assets, if applicable; Control over all records made each day.Order Rout<strong>in</strong>gBOVESPA provides facilities available for <strong>in</strong>dividual and <strong>in</strong>stitutional <strong>in</strong>vestors tosend orders directly to its order book. Member brokerage houses can <strong>of</strong>fer anautomatic and direct access to the BOVESPA’s MEGA BOLSA trad<strong>in</strong>g systemus<strong>in</strong>g different rout<strong>in</strong>g alternatives: Retail <strong>in</strong>vestors may use a gateway for <strong>in</strong>ternet access known as Home Broker.Individuals are allowed to send orders via the <strong>in</strong>ternet access<strong>in</strong>g their brokeragefirm’s website. Institutional <strong>in</strong>vestors may send their orders directly to the order book through asimilar mechanism known as Institutional Connection.In addition to the order rout<strong>in</strong>g possibilities, BOVESPA adopted a Straight ThroughProcess<strong>in</strong>g (STP) concept, through which the enter<strong>in</strong>g <strong>of</strong> the order, its execution, toits f<strong>in</strong>al and irrevocable settlement is conducted fully electronically. Investors will<strong>in</strong>gto trade have to “be previously registered and authorized by the brokerage firm andeach trade has to be identified with the <strong>in</strong>vestor identification code. BOVESPA doesnot establish any technical limits (m<strong>in</strong>imum or maximum) for the orders;nevertheless, each Brokerage Firm has the ability to establish specific trad<strong>in</strong>g limitsaccord<strong>in</strong>g to the credit limits for each <strong>in</strong>vestor” (BEST, 2005b, p. 24).