Base Exchange

The primary physical infrastructure for Base Exchange is hosted at the Equinix SP6 Data Center. The secondary physical infrastructure is hosted at Ascenty Vinhedo 2.

How will participants connect to the Base Exchange infrastructure?

Base Exchange offers various connectivity options to suit different participant profiles, providing flexibility, security, and high availability when accessing its infrastructure.

The connectivity models are:

Cross-Connect
Equinix Fabric
Dedicated circuits (similar to RCB)
RTM (for specific services)
Site-to-Site VPN

With these alternatives, participants can choose the connectivity model that best fits their operational needs, balancing performance, resilience, and ease of integration with the Base Exchange infrastructure.

Does the Base Exchange provide colocation options, cross-connects, and remote dedicated connections to participants?

Yes. The Base Exchange has a dedicated cage at Equinix SP6, located in a data hall exclusive to the Exchange. The exact location of the colocation environment is disclosed to participants in due course. The Base Exchange does not sell physical infrastructure services, such as cages, racks, or power. Colocation services must be contracted directly with Equinix or Ascenty.

Will dark fiber be made available to participants who already have a presence in the B3 colocation facility, or will the connection be carried out exclusively through telecommunications carriers?

Currently, the connection between the Base Exchange and B3 follows the conventional model via telecommunications carriers. The list of certified carriers is released in due course. The provision of dark fiber for participants with a presence in the B3 colocation facility is still under evaluation, and new alternatives are being studied.

Will there be dedicated connection ports per brokerage firm to the Exchange environment, or only shared connections segregated by VLANs?

Both dedicated and shared connection ports are available, with segregation via VLANs.

How are Official Letters and Announcements published?

There is a section on the Base Exchange website dedicated to all published Official Letters and Announcements. New publications are also sent by email to those who sign up to receive them. These Official Letters and Announcements are part of the transparency rules defined by Base.

Which instruments are available for trading on Base Exchange?

Stocks, units, real estate investment funds, and ETFs are available for trading. The list of authorized instruments is published via Market Data and on the Base website.

What is the standard trading lot on Base Exchange?

Base Exchange adopts a standard lot size of 1, so the minimum quantity for trading any instrument is 1.

Are IPOs available on Base Exchange?

Not at the moment. The companies traded on Base Exchange are the same as those on the primary listing exchange.

Is there a Market Maker program on Base Exchange?

Yes. Detailed information will be available soon.

What are Base Exchange's trading days?

Trading days follow the primary listing exchange's calendar.

What are the trading phases on Base Exchange?

The trading phases are: Connectivity Testing, Pre-opening (cancellation only), Continuous Trading, Closing (MOC orders), and Order Cancellation.

Is there volatility control on Base Exchange?

Yes, Base uses a Volatility Control Mechanism (VCM) to regulate price fluctuations.

What triggers the Volatility Control Mechanism (VCM)?

The VCM is triggered when an order could result in trades outside the trading tunnel. For each instrument or group of instruments, Base sets a volatility percentage and a reference price, creating a dynamic price range. If an order exceeds this range, it is rejected and the instrument enters a five-minute stabilization period, during which the Dynamic Tunnel becomes static, limiting the prices of accepted orders.

Does Base offer a Best Execution mechanism?

In accordance with CVM Resolution No. 134, each intermediary is responsible for defining the procedures and parameters needed to achieve the best possible result for the client when executing orders. Base remains available to help participants develop and define best execution practices.

Which order types does Base Exchange accept?

Base Exchange accepts simple buy and sell orders, limit or market, as well as cross orders. It also accepts MOC (Market on Close) and POC (Passive or Cancel).

What is a Passive or Cancel (POC) order?

A POC is a limit order that is only accepted if it rests in the book as a passive order, waiting for a counterparty. If, when sent, it would execute immediately against an existing order in the book, it is automatically cancelled instead. This ensures the order never acts as an aggressor. It is designed for liquidity-providing algorithms.

Can I send Good Till Cancelled (GTC) or Good Till Date (GTD) orders?

Yes. Orders can be valid until a specific date or until cancelled, for a maximum of 1 (one) year.

Can I send FOK or IOC orders on Base Exchange?

Yes. Base Exchange accepts Fill or Kill (FOK) and Immediate or Cancel (IOC) orders via the ALO Binary and FIX protocols.

Does Base Exchange accept MOC orders?

Yes. Base accepts MOC orders. Detailed rules will be announced soon.

Is it possible to day trade across Brazilian stock exchanges?

No. Trades executed on Base are cleared and settled exclusively through its own post-trade infrastructure. Therefore, buys and sells executed on different exchanges are treated as independent transactions, known as arbitrage trades, and do not qualify as day trades across markets.

How can orders be cancelled from outside the trading session?

Orders can be cancelled through the drop copy supervisory session or through Base's order management platform.

Which order entry protocols does Base Exchange accept?

Base accepts the ALO binary protocol, native to its matching engine, as well as FIX 4.4.

Are there limits on orders per second or throttling mechanisms?

Yes. There is a throttle per session (FIX or binary), which sets a maximum number of messages per second. The limits will be published soon.

How can I integrate my current infrastructure with Base Exchange?

Our protocols are available on our website so that brokers can assess the adjustments needed. We provide technical support and assistance with questions and custom solutions, ensuring a fast and efficient integration.

Where can I find the full business rules specification for the Market Data feed?

The Market Data specification, called ALI Protocol, is already available. The instruments, tickers, and ISINs are the same as those traded on the primary listing exchange. Any consolidation of Market Data between the primary listing exchange and Base is done through vendors that offer this service.

Which Market Data feeds are available?

Base provides MBE (Market by Event), which includes all orders, executions, trade cancellations, instrument list, trading status changes, and trading tunnel. It also provides a feed with top of book and trade statistics (high and low prices, traded volume, among others).

How are Market Data and matching engine timestamps synchronized?

The clocks of the trading services are synchronized via PTP. Market Data event timestamps are the same as those of the events generated by the matching engine.

Does Base provide an NBBO (National Best Bid and Offer) feed?

No. Base does not provide a consolidated Market Data feed.

Is Drop Copy available? What customization options are there?

Yes. Drop Copy is available via FIX 4.4. It can be filtered by account, CNPJ (Brazilian company tax ID), and order entry session. It can also be configured to send only trades or all messages.

How can I track offer rejections?

The order management platform provided by Base lets you filter all order rejections along with their reasons. Rejection details are also included in the messages sent through the Order Entry sessions.

Does Base Exchange offer trading and post-trading services?

Yes. Base offers trading services and has its own clearing and settlement infrastructure (Clearing). Custody is unified, since Base is connected to the primary listing exchange's central depository.

Can I trade on Base Exchange and settle the trade on the primary listing exchange?

No. Trades executed on Base Exchange are settled only through Base Clearing.

What is the procedure to become a Base participant?

To become a participant, the applicant must:

Initial alignment with the Sales team
Provide the necessary data and documents according to the chosen access category
Comply with Base regulations
Be approved according to the access category
Complete operational and technological onboarding

What types of accounts exist in the Base?

The available account types and their respective uses are described in the Post-Trade Operational Procedures Manual, which will be released in due course.

What are the Base participant categories?

The list of participant categories is available for consultation in the “Participants” section of the Base Exchange website.

What are the possible account statuses?

The available statuses and their respective descriptions are detailed in the Post-Trade Operational Procedures Manual, which will be released in due course.

What is the timeframe for access to be granted?

Data analysis, documentation review, and registration approval may take up to 30 days. Activation depends on the connectivity method used with the Base and the necessary adjustments made by the Participant's technical team.

What types of links are available?

The available types of links and their respective purposes are described in the Post-Trading Operational Procedures Manual, which will be released in due course.

What happens if the participant does not complete the operational qualification?

If access authorization is cancelled, you need to start a new access request process.

What types of investors are available on Base?

The available types are:

Individual
Corporate
Investment Funds
Non-Resident Individual Investor
Non-Resident Investor Other Cases

What is the deadline for the Participant to update their registration?

Participants must keep their registration details up to date, ensuring that information and documents are updated whenever any changes occur. Base notifies the Participant when a periodic registration review is required, in accordance with regulatory standards.

Which types of links require approval?

The following links require approval:

Give-up – Executing participant approves
Custodian – Carrying participant approves

Does the principal need to be registered with another Market Infrastructure to trade on the Base?

To trade on the Base, the principal must be registered with the Central Depository used by the Base responsible for the settlement of the operation's assets.

What are the differences between public and private lending options?

Base Securities Lending options are divided into public and private categories. The public option allows for the execution of lending transactions using assets available in public books, meaning that both lending and borrowing orders are visible to everyone for execution at will; contracts concluded through this option feature standardized terms for maturity, grace periods, and reversibility. The private option consists of formalizing a transaction with terms defined bilaterally between the parties in a private setting; contracts concluded through this option feature customizable terms for maturity, grace periods, and reversibility.

Who can access the Base Securities Lending platform?

The Base Securities Lending system is accessed by authorized intermediaries on Base as a Full Trading Participant (PNP) or Settlement Participant (PL) on behalf of their investors.

Which instruments will be available for Securities Lending on Base?

All stocks, units, real estate investment funds, and ETFs available for trading on Base are eligible for Securities Lending, subject to risk criteria.

On which days will Base Securities Lending be available?

The Securities Lending system is available on all days when there is a trading session on Base, which in turn follows the calendar of the exchange where the assets are listed.

What are the operating hours for the Base Securities Lending system?

The system is available from 8:00 AM to 7:30 PM (BRT). The schedules for submitting orders, closing deals, and other processes at Base Clearing are detailed in the Base Post-Trading Operational Procedures Manual.

Which types of orders will be accepted by the Securities Lending system?

The public mode allows for the entry of lending and borrowing orders, which can be either limit or market orders. The private mode allows for the entry of directed and direct orders. Orders are submitted by an intermediary authorized on the Base as a Full Trading Participant (PNP) or Settlement Participant (PL).

What are the benefits for the lender when lending their assets?

For investors who intend to hold their assets, lending provides extra income while ensuring all rights to future earnings are maintained throughout the contract term, along with the security that the assets will be returned at the end of the agreement.

Does the lender run the risk of not receiving the loaned assets after the Securities Lending contract expires?

Clearing has lender protection mechanisms in place to ensure the receipt of assets within the contractually agreed timeframe or, in exceptional situations, the financial value corresponding to the transaction. A detailed description of these contingency mechanisms is available in the Base Post-Trade Operational Procedures Manual.

During the term of a Securities Lending agreement involving voting shares, does the lender still have the right to attend and vote at shareholder meetings?

In Securities Lending transactions, shares are temporarily transferred to the borrower's ownership. Consequently, for the duration of the contract, the lender is no longer listed as a shareholder of the company and, therefore, cannot exercise voting rights at shareholder meetings.

During the term of a stock loan agreement, is the lender entitled to corporate actions issued by the company?

In Securities Lending, the lender temporarily transfers formal ownership of the assets to the borrower and, as a result, is no longer listed as a shareholder with the issuing company, meaning they do not directly receive dividends or distributions during the term of the transaction. However, the loan agreement ensures the lender receives an amount equivalent to these distributions on the same date they are paid by the company, subject to applicable tax treatment. To facilitate this, the Base Clearing system credits the lender and simultaneously debits an equal amount from the borrower. When a corporate action involves the distribution of assets, such as stock bonuses, splits, reverse splits, or similar operations, the lender receives the returned assets with quantities adjusted to reflect the impact of the event. In cases where subscription rights arise during the loan term, the system allows the lender to exercise these rights under conditions equivalent to those they would have had if the assets had remained in their possession, adhering to the same deadlines and values established by the company. However, since the lender is not listed as a shareholder during the transaction, subscription rights are not credited directly to their custody account. In this scenario, the borrower is responsible for returning the subscription rights, the corresponding receipts, or the shares resulting from the exercise of those rights. If subscription receipts or new shares are delivered, the costs associated with exercising the subscription remain the responsibility of the lender.

What taxes are due from the lender when closing an Securities Lending contract?

Income earned by the lender in Securities Lending transactions may be subject to Withholding Income Tax (IRRF), depending on the investor category, the term of the transaction, and the country of residence.

The applicable rates are:

Resident investor (individual or legal entity) and investor residing in a country or dependency with favorable taxation ("tax haven"):

Up to 180 days: 22.5%
From 181 to 360 days: 20%
From 361 to 720 days: 17.5%
Over 720 days: 15%

Foreign investor: 15%

Financial institution: exempt

For the borrower, there is no Withholding Income Tax on the execution of the lending transaction; only applicable fees and operational costs are due.

For more information on the taxation of Securities Lending transactions, please refer to RFB Normative Instruction No. 1,585.

Can an Securities Lending contract be settled early?

All Securities Lending contracts are subject to a minimum grace period of 1 business day following the settlement of the trade opening. In private transactions, this period can be negotiated between the parties, whereas in public transactions, the 1-business-day grace period is mandatory. Requests for early settlement can only be made after the contractual grace period has been fulfilled. Furthermore, for a lender to request early settlement, the contract must include a reversibility clause in their favor. In such cases, the borrower has a minimum timeframe to return the assets, which varies depending on the time the lender's intermediary submits the request. When an early settlement request is made by the borrower, the settlement occurs on the business day following the request.

Can a Securities Lending agreement be renewed early?

The renewal of Securities Lending agreements depends on the initiative of one of the parties involved, who must submit the request through the intermediary institution responsible for the operation, whether it be a brokerage, distributor, or custodian. For the renewal to be finalized, the counterparty must also agree, and they may accept or decline the request within the timeframes established by Base. Therefore, it is recommended that the parties align beforehand regarding their interest in the renewal to ensure the process is successful.

Can the lender sell the loaned assets during the term of the Securities Lending agreement?

The possibility of selling assets during the term of the agreement depends on the policies established between the principal and their intermediary. When permitted, the transaction requires the early settlement of the lending agreement, which must occur within the settlement period for the asset sale. It is the sole responsibility of the intermediary institution to process the early settlement request, the sale of the assets, and any other workflows necessary to ensure the proper execution of the transaction.

Are Base Securities Lending contracts renewable?

Yes. All Securities Lending contracts traded on Base are automatically renewed upon maturity by default. Renewal generates a new contract with the same characteristics as the original, ensuring position continuity and avoiding unnecessary liquidations. In the renewed contract, the rate is updated to the average asset rate published by Base, the quantity corresponds to the balance of assets not previously liquidated (if no early liquidation occurred, the quantity remains the same as the previous contract), and the new maturity is set to 21 business days. Furthermore, automatic renewal can be disabled at the time the operation is contracted. If this option was not selected initially, but the parties decide to terminate the contract at maturity, the cancellation of the automatic renewal can be requested up to T-3 before the maturity date. This request can be made by either the lender or the borrower and is subject to the counterparty's approval.

Is it possible to request a renewal of a Securities Lending contract while changing the contract's terms?

Yes. If the parties wish to renew a contract with terms different from those set out in the automatic renewal, a manual renewal can be performed. In this case, the renewal does not follow the standard parameters and is subject to approval by the participant, the counterparty, the carrying broker (where applicable), and the custodian, in the case of custody routing. The request can be made from the grace period date up to T-3 of the maturity date, provided the established deadlines for this procedure are met. During manual renewal, it is possible to change the quantity of assets (limited to the active balance of the original contract), the lending fee, the maturity date, the grace period date, and the reversibility to the lender. Changes to the maturity date, grace period date, and reversibility to the lender are only permitted for private contracts. Manual renewal is not permitted for contracts taken compulsorily to address delivery failures or for defaulted contracts.

Does Base set a limit on the rates at which Securities Lending operations can occur?

Operations on Base can be contracted with a rate between 0.00001% and 499.99999%.

What are the ways to access the Base Securities Lending system?

The system can be accessed via the Base Portal (Base Services Portal), through APIs, or via messaging. Technical specifications for each access method are made available on Tech Base (Base Technical Portal).

What are direct orders and directed orders in Securities Lending?

Direct orders are private-type orders entered by a participant who identifies both the lending client and the borrowing client at the time of the trade, with both parties under their responsibility. Directed orders also fall under the private category, but are entered by a lending participant and directed to a specific borrowing participant. In this case, the lender and the borrower are under the responsibility of different intermediaries.

What are limit and market orders in Securities Lending?

A limit order is an order where the participant sets a limit rate for executing transactions. Execution only occurs if there is a counterparty willing to trade at conditions equal to or better than the specified rate; if no counterparty is found, the order is added to the loan order book. A market order, on the other hand, is an order without a defined rate that is executed immediately at the best available market rate at the time of entry for the desired asset, provided a compatible counterparty exists; in this case, if no counterparty is found, the order is cancelled.

Can Securities Lending contracts be transferred during their term?

Yes, active contracts can be transferred in the following scenarios:

Without a change in the principal:

Change of Executing Account;
Change of Executor + Executing Account;
Change of Carrying Account;
Change of Carrying + Carrying Account.

With a change in the principal:

Change of Executing Account + Carrying Account;
Change of Executor & Executing Account + Carrying & Carrying Account.

The transfer always involves the total quantity of active assets and any already provisioned earnings, as the object of the transfer is the contract in its entirety. The transfer of the position may imply the transfer of collateral linked to the position, which must be requested jointly. The transfer is subject to evaluation and approval by the Clearinghouse and the participants involved in the transfer. All details are described in the Base Clearing Post-Trading Operational Procedures Manual.

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The descriptions above are for informational purposes only. The complete rules can be found in the Clearing Base Operations Manual.

Voluntary Accelerated Settlement (VAS)

What is Voluntary Accelerated Settlement?

This is the mechanism through which Base anticipates the settlement of eligible spot market transactions from T+2 to T+1. As a result, the buyer can receive the securities and the seller can receive the funds one business day ahead of the standard cycle. This anticipation applies to covered sell positions and requires authorization from both parties.

Is Voluntary Accelerated Settlement mandatory?

No. Voluntary Accelerated Settlement is optional and requires authorization from both parties — the buyer and the seller. No participant is forced into early settlement against their will: a Voluntary Accelerated Settlement pair only exists at the intersection of two independent authorizations.

Which positions are eligible for Voluntary Accelerated Settlement?

Eligibility originates from the sell side: a short position whose net seller result is allocated and locked in the sell-side coverage portfolio (4409-1). Since the balance is already locked and guaranteed, the delivery of the security is certain by design. Being eligible is a necessary, but not sufficient, condition for Voluntary Accelerated Settlement.

Does being eligible and authorized guarantee that I will receive Voluntary Accelerated Settlement?

No. Beyond your own eligibility and authorization, there must be sufficient authorized credit on the other side to form the pair. The amount of each security that is actually advanced depends on the Risk module's selection policy. A perfectly eligible and authorized position may not be advanced due to a lack of an authorized counterparty or because of a selection decision.

How do I authorize my participation in Voluntary Accelerated Settlement?

It consists of two layers. The registration layer is a permanent enrollment: without registration, a participant can never enter Voluntary Accelerated Settlement in any position. The position screen layer operates on top of this: those who are registered are included by default and can restrict individual positions (exclusion by position); those who are not registered can add a position on an ad-hoc basis, just for that day, without creating a permanent enrollment.

Is there buy-side coverage in Voluntary Accelerated Settlement?

No. There is no such thing as a buy-side coverage portfolio. The Voluntary Accelerated Settlement trigger is always the sell-side debit, allocated to the sell-side coverage portfolio (4409-1); the buy-side credit is matched as a counterparty, but it does not trigger eligibility.

When does the Voluntary Accelerated Settlement engine run?

At T+0, at the 8:30 PM cutoff, positions eligible for T+1 anticipation are determined following the completion of allocation and custodian validation. The associated risk calculation follows at 9:00 PM. This is the point at which candidates are formed, the Risk policy is applied, and matched pairs are produced.

The screen shows a “Settlement Forecast.” Does this guarantee that I will receive Voluntary Accelerated Settlement?

No. The “Settlement Forecast” and “Cycle Forecast” are conditional projections calculated before the engine runs (e.g., “if advanced, it will be on T+1 on such-and-such date”). The “Settlement Date” is the actual event, recorded after settlement occurs. The forecast should not be interpreted as a guarantee of Voluntary Accelerated Settlement.

Is Base also my counterparty for Voluntary Accelerated Settlement?

Yes. Base also acts as an intermediary between buyers and sellers for the Voluntary Accelerated Settlement product (CCP interposition). Therefore, a seller whose buyer defaults on T+1 is paid in the same way — their counterparty is the Clearing House. A seller is never left unpaid due to a buyer's default.

What happens if the buyer fails on T+1?

The failed position is assumed by the Clearing House and follows the standard failure process: rolling over to the next business day following the failure date, followed by a mandatory loan, Base Buy-in, or Cash Close-Out. There is no specific failure engine for Voluntary Accelerated Settlement; the existing failure infrastructure is repurposed.

The descriptions above are for informational purposes only. The complete rules can be found in the Clearing Base Operations Manual.

Securities Settlement

How does the securities settlement cycle work at Base?

Securities trade settlement occurs on a multilateral net basis: throughout the day, each participant's buy and sell obligations are offset against one another, meaning only the net balance of each security needs to be physically delivered or received. This reduces the movement of securities in custody and lowers operational risk. Securities and cash settlements are coordinated within the settlement windows defined by Base.

What is the settlement period for spot trades?

Spot trades settle on a T+2 basis, meaning two business days after the transaction. When an obligation is not settled on time, it may be rolled over to the next business day, subject to specific failure handling procedures and a new settlement opportunity.

What does net settlement or netting mean?

This means Base does not settle each transaction individually. Before delivery, buy and sell instructions for the same security within a single settlement structure are offset against each other, leaving only the net balance to be delivered or received. This mechanism increases cycle efficiency and reduces the need for custody balances.

How do I track my instructions during settlement?

Base provides monitoring screens where participants can check the real-time status of their instructions throughout the settlement window, including securities settlement, spot positions, failures, and the status of buy-ins and cash close-outs. Queries are updated automatically as processing progresses.

Can I anticipate if one of my positions is likely to fail?

Yes. Before the window officially closes, you can check a projected settlement result, which indicates which positions are likely to fail and the estimated impact. This allows participants to take proactive measures — such as covering a balance — before the cycle is finalized.

What happens if I do not deliver the securities by the settlement deadline?

When a participant fails to deliver the required securities by the close of the settlement window, the obligation is classified as a delivery failure. Base automatically triggers a series of mechanisms to resolve it — including offsetting with other positions and a Mandatory Securities Loan — and if settlement is not possible on the same day, the obligation is rolled over to the next business day. If the failure persists, it may be handled through a Base Buy-in or converted into a Cash Close-Out.

What is a delivery failure rollover?

When an obligation is not settled by the deadline, it may be rolled over to the next business day, allowing for a new settlement attempt. Obligations that remain in failure at the end of the delivery window on the settlement date are then processed via Buy-in or Cash Close-Out.

Can I provide a justification for a delivery failure?

Yes. Some situations trigger automatic justifications — for example, when a participant fails to deliver a security because they did not receive the expected security within the same window. Additionally, participants can submit manual justifications within the established deadline, which are then reviewed by Base. An accepted justification may waive or reduce the corresponding penalty.

What mechanisms does Base use to reduce delivery failures?

Base applies a sequence of failure mitigation mechanisms: delivery netting, which matches opposing obligations without moving custody; the settlement algorithm, which leverages balances across different timeframes; and finally, mandatory securities lending, which automatically initiates loans to cover residual failures. Only after these mechanisms are exhausted does a failure proceed to Base Buy-in or Cash Close-Out processing.

How is the price used in the settlement of a failure defined?

Base calculates a reference average price for each settlement structure, weighted by the quantities and prices of the trades involved. This price is used to value failures, calculate Cash Close-Outs, and serve as the basis for the Cash Close-Out, ensuring a single, auditable criterion.

What is a Mandatory Securities Loan?

This is a loan automatically triggered by Base to resolve residual delivery failures. In the event of a failure, Base checks the donor offers available in the public securities lending book and executes the necessary transactions to cover the shortfall, allowing settlement to be completed. This is a last-resort mechanism, applied only after all other mitigation measures have been exhausted.

What is the Base Buy-in?

The Base Buy-in is the mechanism through which Base acquires securities in the market that a participant failed to deliver, in order to fulfill the obligation to the party entitled to receive them. The purchase is executed based on specific offers, and the corresponding cost is charged to the participant who defaulted.

What is Cash Close-Out?

When security delivery is not possible — for example, due to a lack of offers for the Base Buy-in — the obligation may be settled in cash: the participant who was to receive the securities receives the cash equivalent, calculated based on a reference price defined by Base. This process is known as Cash Close-Out.

How is collateral used in the settlement process?

Assets held as collateral may be used in the settlement process, in accordance with specific rules and subject to authorization by the Base Collateral module. Collateral helps reduce the risk of failure and is factored into the cycle's clearing mechanisms.

Can Base withhold the delivery of securities to a participant?

Yes, in specific risk situations. If there is a risk of a participant defaulting, Base may preventively restrict the delivery of securities to them in a controlled and traceable manner until the risk is resolved. If the risk is not resolved by the cycle's cutoff time, the securities are directed to a restricted account instead of the participant's account.

How do I know if I have received a penalty and what it represents?

Penalties are available for consultation on Base's own monitor, including details of the failure, the amount, and the calculation basis. Participants are notified of relevant events via screen and messaging, allowing them to track the complete lifecycle of each occurrence.

Are there penalties for delivery failures or late settlement?

Yes. Delivery failures are subject to a penalty applied to the undelivered quantity, and there is also a penalty for late cash settlement. The percentages and limits are progressive based on the situation and the time taken to rectify the issue, and they are detailed in the Base Post-Trade Operational Procedures Manual.

Can I appeal a fine?

Yes. Additional fines may be appealed through a reconsideration request, which must be submitted within the timeframe indicated in the monitor itself. The request is reviewed by Base,which may either uphold or overturn the fine. Minimum fines, which are of a lower value, are not eligible for reconsideration.

The descriptions above are for informational purposes only. The complete rules can be found in the Clearing Base Operations Manual.

Cash Settlement

What is cash settlement?

This is the process that transforms the clearing result into cash obligations: each participant receives or pays the net amount generated by consolidating their operations. Base consolidates the day's financial events, calculates this net position, and forwards it for settlement within the Brazilian Payments System (SPB). It does not replace the official settlement system — it prepares, validates, and provides traceability for the amounts that will be effectively settled.

Under which model does settlement occur at Base?

Base uses the Deferred Net Settlement (DNS) model, a multilateral clearing method within the Brazilian Payments System (SPB). It is “deferred” because funds are transferred at a specific time at the end of the payment cycle rather than in real time, and “net” because the day's cleared balance is transferred instead of each individual transaction. All of this takes place within the Central Bank of Brazil's operational windows. The order is fixed: the position is consolidated first, then settled — no settlement occurs before the day's clearing is closed.

Is every entry settled through multilateral netting?

No. Multilateral settlement entries make up the Multilateral Settlement System (MSS) and are settled within the clearinghouse cycle. Conversely, non-multilateral settlements — such as certain collateral movements outside the netting cycle and direct settlements that bypass the clearing process — are not part of the MSS and are settled through their own workflows, during STR (Reserves Transfer System) operating hours where applicable. Both are monitored and tracked, but they follow separate channels.

How is the net value used by the Clearinghouse for cash settlement calculated?

Through multilateral netting based on financial entries. Each daily event — purchases and sales, securities settlement, securities lending, collateral, penalties and charges, failures, and Cash Close-Outs — generates a debit or credit entry. All are consolidated into the Multilateral Net Balance (MNB), calculated per participant, resulting in a single amount to be paid or received, rather than multiple individual settlements.

What are the Provisional MSS and the Final MSS?

The MSS is calculated in two stages, in accordance with the operational schedule cut-off times. The Provisional MSS is calculated throughout the window while entries are still being received, serving to monitor and prepare for settlement. The Final MSS is consolidated after the cut-off time, once all valid entries for the day have been processed. Based on the MSS, Base generates the settlement messages — the Provisional LDL and Definitive LDL — which are sent to the SPB; the final version serves as the basis for the actual settlement.

Why do I receive a Provisional LDL before the settlement at Base?

To provide cash flow predictability. The Provisional LDL0001 — a settlement advice message transmitted via STR — anticipates the estimated multilateral net balance to the Clearing Member before the final version is sent. This allows the CM to know in advance how much they need to have available to settle within the window and to coordinate with their Settlement Bank. The final amount is the one stated in the Definitive LDL0001.

How do I know if my settlement has been confirmed?

Once the settlement message is sent, the SPB returns a processing confirmation — and only then is your position marked as settled. If a message is rejected, it is resubmitted or handled manually until it is resolved. The entire cycle of sending, returning, and status updates is recorded.

How do I know the amounts charged during settlement are reliable?

The entire cycle is traceable. Every event — entry, calculation, submission, return, and status — is logged, with an audit trail of values and result versions, and a link between the reversing entry and the original entry via reference code. Results are made available in a structured format to Base and participants, allowing for verification and reconstruction of the position.

What happens if my settlement result shows an inconsistency?

When the system identifies an inconsistency, a pending approval, or a discrepancy in a position, it is blocked and will not proceed to settlement until it is resolved — without stalling the processing for other participants. The case can be reprocessed, always subject to the necessary approvals and audit logs.

What happens if there is a system or communication failure during settlement?

Base maintains a contingency plan to ensure settlement continuity even in the event of infrastructure failures or disruptions in communication channels with the Central Bank. In such scenarios, settlement proceeds via alternative means in accordance with Central Bank regulations, ensuring traceability and preventing message duplication; participants are notified when contingency mode is activated. Once operations normalize, events processed during contingency are synchronized with the primary environment.

What happens if a transaction is paid late in the Base?

Within the window, your position remains pending or awaiting settlement; once the full amount is received, it is settled (a partial payment is recorded as such). If the cutoff time for the schedule is exceeded without payment, the participant enters a state of arrears, which may result in a late payment penalty—typically included in the following day's multilateral cycle—and a requirement for a formal justification. In cases of prolonged arrears without resolution, a declaration of default may be issued. Once the situation is resolved, the status returns to normal.

The descriptions above are for informational purposes only. The complete rules can be found in the Clearing Base Operations Manual.

Failure Positions

What is a delivery failure?

This refers to an obligation to deliver securities that remains unfulfilled by the 12:00 PM official settlement window cutoff. When a participant fails to deliver the required securities within this window, the remaining balance is classified as a failure and becomes subject to specific procedures. This classification applies to both T+0 and T+1 settlement, depending on the stage of the cycle.

What is a failure position?

This is the record created by the Clearing House to track a failure until its resolution. At the end of the official window, for every regular-way instruction that remains unsettled, the system generates — within the same event — the corresponding rollover instruction and its associated failure position. The position replicates the weighted-average price of the original instruction and tracks the rollover until it is settled or fails again on T+1 of the failure. There is one failure position for each unsettled instruction.

What does Base automatically attempt before declaring a delivery failure?

Base applies window mitigation mechanisms in sequence: netting between eligible instructions, which matches opposing obligations without moving custody; non-settlement and delivery optimization algorithms, which leverage balances across different types and maturities; and mandatory security lending, triggered for residual failures. A failure is only officially recorded once these mechanisms have been exhausted.

Are fail positions “rolled over” to the next day?

No. The instruction that attempts to settle again is the rollover instruction — a separate instruction from the original, generated at the end of the official window during the same event that creates the fail position, which will attempt to settle during the T+1 window following the fail. The fail position is not rolled over: it is created at that moment, associated with the rollover, and remains linked to it. During the T+1 window, the rollover instruction goes through clearing, non-settlement and optimization algorithms, and a second attempt at a mandatory loan once again.

Can I find out if I am likely to fail before the official window?

Yes. Before the 12:00 PM window execution, the Failure Forecast screen provides the custodian with a preliminary settlement result: the projected net result by structure, the netting effect, the quantity still pending effective balance, and the estimated cash impact of the failures. This allows for proactive action — such as covering a balance — before the cycle is definitively consolidated.

What happens if the rollover instruction still fails on the T+1 settlement date?

At the end of the full T+1 settlement failure window, if the rollover instruction remains unsettled, the associated failed position is subject to the Buy-in Mechanism, Transfer, and Cash Close-Out process. The central counterparty acquires the missing securities in the market, distributes the acquired balance to the creditors, and converts any undeliverable securities into their cash equivalent. Further details can be found in the Buy-in Mechanism, Transfer, and Cash Close-Out Positions FAQ.

Does Base act as the counterparty to trades during a default?

Yes. Through the CCP's interposition, the Clearing House acts as the buyer to the seller and the seller to the buyer. Therefore, those entitled to receive securities will still receive them, even if the original counterparty has defaulted — the defaulted position is assumed by the Clearing House. There is no such thing as a “stranded” creditor participant in the event of a default.

Where can failed positions be tracked?

The Failed Positions screen is a query interface that displays one row per position by Settlement Date, including identifiers, nature, settlement structure, quantity, weighted-average price, and cash volume. It is strictly for viewing and exporting data, and each participant can only see their own side. It shows what is in transit for settlement on the day after the failure (T+1), prior to any potential conversion into a Buy-in Mechanism, Transfer, or Cash Close-Out.

Who can see failure positions?

Base has a complete view of all positions. Each participant exclusively views information regarding their own instruction, preserving confidentiality between the parties.

The descriptions above are for informational purposes only. The complete rules can be found in the Clearing Base Operations Manual.

Failure Forecast

What is the Failure Forecast and what is its purpose?

This is a decision-support screen for the custodian that provides a pre-settlement result after final client allocation and before the official 12:00 PM window. It identifies which delivery obligations are likely to remain outstanding after netting and estimates the potential impact. It functions as an early simulation of the window's logic, allowing for proactive action before the cycle is finalized.

Does the Failure Forecast guarantee the settlement result?

No. It is a projection, not a promise. The final result is only determined during the official 12:00 PM window — specifically because the outcome of the credits depends on the non-settlement algorithm, which only runs during that window and cannot be anticipated. The screen exists to guide action before the closing, not to guarantee an outcome.

What information is displayed on the Failure Forecast screen?

Only settlement structures with a debit pre-result — that is, delivery obligations at risk. This screen is not a complete view of the settlement cycle; it is a tool designed to identify and proactively address potential shortfalls. Structures with a credit result, structurally covered instructions, and uncompensated credits are, by definition, out of scope.

Why don't the credits appear on the Failure Forecast screen?

This is a structural exclusion, not a display limitation. Knowing which credits will actually be settled depends on the execution of the non-settlement algorithm during the official window — a step that cannot be performed in advance. Since this outcome does not exist before the window opens, uncompensated credits are not displayed.

How does the Failure Forecast screen organize information?

By settlement structure — the combination of Clearing Member, PNP/PL (PNP – Full Trading Participant; PL – Settlement Participant), custodian, custodian account, ISIN, and distribution. Each aggregated row represents a pre-result by structure, and the drill-down reveals the composition instruction by instruction, showing what has been cleared and what remains as a settlement requirement.

How is offsetting accounted for in the Failure Forecast screen projection?

Offsetting only occurs between regular-term instructions of opposite natures within the same structure and in portfolios that offset that side. The collateral balance (4390-7) is consumed before the free portfolio (4101-7) to release the collateral first, as it is the more expensive resource. Loan coverage and covered call portfolios do not offset, and rollovers never offset — each appears as a separate line item.

What is a rollover on the Failure Forecast screen and why is it highlighted?

A rollover is a delivery obligation resulting from a previous failure at its final settlement opportunity. It is excluded from netting and is always displayed separately. Because it represents the most critical scenario — as failure to settle ends the cycle and triggers a Base Buy-in Mechanism and Cash Close-Out — it is given top priority for balance consumption.

What does a “structurally covered” instruction mean on the Failure Forecast screen?

These are instructions that do not depend on additional liquidity and do not result in a failure, which is why they are excluded from the screen. This applies to Voluntary Accelerated Settlement debits for positions in covered position portfolios and loans in hedging portfolios, which already have pre-established coverage.

If the balance does not cover everything on the Failure Forecast screen, which debit is processed first?

The projection follows the order of obligation criticality: first the rollover (last opportunity, triggers buy-in/close-out if it fails), then the loan (highest sensitivity for the chain of lenders and borrowers), and finally the spot market (regular term, no history of failure). This order is distinct from the non-settlement algorithm hierarchy.

Does the Failure Forecast screen use collateral automatically?

No. The Failure Forecast does not execute the use of collateral — it merely highlights insufficient funds and indicates the existence of collateral when the instruction is already allocated to that portfolio. Actual usage depends on available funds, authorization from the risk system, and compatibility between the operation's PNP/PL and the assets provided as collateral. The screen can even signal when the use of collateral is likely to be denied due to eligibility issues.

What can custodians do from the Failure Forecast screen?

Take action before the cutoff: cover a balance, switch the instruction wallet on the security settlement screen, or request a margin transfer between PNPs/PLs. Once the action is taken, the Forecast reflects the change in real time and recalculates the projected result, allowing you to immediately verify whether the at-risk obligation has been addressed.

The descriptions above are for informational purposes only. The complete rules can be found in the Clearing Base Operations Manual.

SECURITY DELIVERY RESTRICTION

What is a delivery restriction?

It is the mechanism by which an authorized entity holds, in a controlled and traceable manner, the delivery of securities that a participant is due to receive (a security credit). The security is neither discarded nor lost: it remains held while the restriction is in effect and flows back into the client's account as soon as the restriction is released, within the cycle's timeframes.

Who can apply a delivery restriction?

Four entities: the Clearing House, the Clearing Member (CM), the PNP/PL, and the Custodian. Each restriction is linked to the entity that applied it, and the sum of all restrictions on a single instruction can never exceed the total credit amount.

Is the delivery restriction always on the total amount?

No. It can be total or partial regarding the credit in securities. An instruction can have both a restricted portion and a free portion at the same time — and restrictions from different entities can coexist on the same instruction. The system continuously recalculates the total restricted amount, the amount still available for new restrictions, and the amount free for settlement.

What is the Clearing House's sovereign restriction?

This is an exceptional restriction: when the Clearing House applies it, it requires manual confirmation and operates on the total quantity of the instruction. It is a tool the Clearing House uses in specific risk situations — such as the risk of a participant defaulting — to preventively restrict delivery until the risk is resolved.

What happens to the instruction when there is an active delivery restriction?

Before the 4:30 PM DvP settlement, the instruction with active restrictions is split into derivatives: one for each active restriction and one for the unrestricted portion, the sum of which equals the original quantity. The unrestricted portion proceeds to client delivery in the DvP; the restricted portions remain held, each linked to the entity responsible for it.

How is a delivery restriction released? Is there a set deadline?

Each entity can only release the restrictions it has applied itself. There is a time window: after 4:30 PM, the system does not accept new restrictions or additional fractional releases — only the release of restrictions that were already registered. Once a restriction is released within the deadline, the corresponding portion becomes available for delivery to the customer again.

What happens if the security remains restricted at the end of the cycle?

At the 6:30 PM cutoff, any portion that remains restricted is settled into the responsible entity's restriction account — rather than the end customer's account. This ensures the security is preserved and managed in a controlled manner, instead of being released while the restriction is still in effect.

Is it possible to audit the delivery restrictions of an instruction?

Yes. When viewing an instruction, you can see the complete history of restrictions, releases, changes, and routing, along with the individuals responsible for each action. This provides a full audit trail of everything that was held, by whom, when, and the final outcome.

The descriptions above are for informational purposes only. The complete rules can be found in the Clearing Base Operations Manual.

BASE BUY-IN, TRANSFER, AND CASH CLOSE-OUT POSITIONS

When do the Buy-in, Transfer, and Cash Close-Out positions arise?

They arise on T+1 of the failure. When a rollover instruction does not settle by the end of the full official window — clearing, non-settlement and optimization algorithms, and the second mandatory loan attempt — the failure position generated on T+0 transforms into these three positions. Base executes the Base Buy-in Mechanism, distributes the balance obtained via Transfer, and forwards the remaining amount to Cash Close-Out.

Why are three positions generated instead of one when handling a failure?

Because they describe sequential stages of the same process. The Base Buy-in Mechanism is the transaction that brings securities into the system; the Transfer distributes this balance to creditors; and the Cash Close-Out settles in cash what the Buy-in Mechanism did not cover. A single query, across three linked tabs, tracks every transaction failure through to the final outcome for each creditor.

In what order do the delivery failure handling procedures take place?

Always in the same sequence, within the execution of the T+1 failure window: official window → Base Buy-in Mechanism → Transfer (distribution of the balance, from the smallest credit to the largest) → pre-selection of residual pairs → Cash Close-Out. Pre-selection of the pairs is a precondition for the Cash Close-Out price, which only exists once the pairs have been established.

What is the Base Buy-in Mechanism?

This is the mechanism through which Base acquires securities in the market that a participant failed to deliver, in order to fulfill the obligation to the party entitled to receive them. The purchase is formed from the Base Buy-in Mechanism order book, between the offer sellers and the outstanding rollover debits — which are the buyers. It serves as the security backing for all other positions.

How is the Base Buy-in Mechanism price determined?

The offer trade has a single price, applied equally to both sides — the seller of the offer and the buyer (the missing rollover debit). The cash volume of each line is the executed quantity multiplied by this single price.

What is a Transfer in failure handling?

This is the distribution of the balance earned from the Buy-in Mechanism to rollover credits that were not fulfilled within the window. A rollover debit is distributed to one or more credits, from the smallest to the largest, with partial fulfillment allowed. The security is passed on to the creditor at the weighted-average price inherited from the rollover credit itself that was fulfilled.

What is the Cash Close-Out?

When delivery in securities is not possible — for example, due to insufficient balance in the Buy-in Mechanism — the residual obligation is settled in cash: the creditor receives the cash equivalent. Before pricing, the system pre-selects the pairs (debit × rollover credit); the Cash Close-Out price is then the highest value among the rollover debit weighted-average price, the rollover credit weighted-average price, and the previous closing price.

Who bears the price difference in the event of a Buy-in Mechanism or Cash Close-Out?

The defaulting participant. In a Buy-in Mechanism, they bear the net difference between the single transaction price and the credit's weighted-average price. In a Cash Close-Out, they bear the difference between the Cash Close-Out price and the credit's weighted-average price. In both cases, the creditor is covered by this spread, preserving the value to which they were entitled.

Is the quantity handled during failure processing the same as the original trade?

No. Each position only addresses the unsettled portion of the rollover instruction — the residual — never the original trade quantity.

How can a failure be traced from start to finish?

Through the linked identifiers of the three tabs. The Buy-in Mechanism identifier is the root; the Transfer identifier refers back to the Buy-in Mechanism identifier that generated the balance; the Cash Close-Out identifier refers to the identifier of the unfulfilled rollover instruction. The chain provides a complete audit trail — from the rollover instruction to the buy-in trade, to the transfer that distributed the balance, and, for any remainder, to the Cash Close-Out.

Can I intervene in Base Buy-in Mechanism, Transfer, and Cash Close-Out positions?

No. The Base Buy-in Mechanism, Transfer, and Cash Close-Out Positions screen is for viewing purposes only: participants can view and export data, but cannot edit, approve, reject, or otherwise intervene in the displayed positions.

Who can see the Base Buy-in Mechanism, Transfer, and Cash Close-Out positions?

Base has a complete view of all pairs. Each participant exclusively views their own side: the debtor sees theirs, and the creditor sees theirs.

The descriptions above are for informational purposes only. The complete rules can be found in the Clearing Base Operations Manual.

Delivery Failure, Justification, and Penalty Monitor

What is the purpose of the Delivery Failure, Justification, and Penalty Monitor?

This is the tool where participants track, justify, and contest penalties for delivery failures — it is not where you view the lifecycle of a failure position, which is located on the Failure Positions screen. In the Monitor, the PNP/PL can view T+0 and T+1 settlement failures, receive automatic justifications, submit manual justifications, track the central counterparty's analysis, and file requests for reconsideration — all with a complete audit trail.

Who sees what in the Monitor?

The PNP/PL only sees its own ILAs and failures, and can consult them, submit manual justifications, and request reconsideration. The Base analyst sees the ILAs with pending manual justifications and can approve or reject them, classifying the failure. The Base manager has a complete overview, including parameter configuration, indicators, and consolidated history.

What are the types of penalties for delivery failures?

There are four. The minimum fine (T+0 and T+1) is 0.5%, with a cap of BRL 50,000 per debit ILA and per window. Additional fines apply only to failures classified as non-operational: 0.5% with no cap on T+0 and 4.5% with no cap on T+1. There is also a 5% recurring fine with no cap for repeat offenses. Minimum fines are charged during the execution of the 12:00 PM windows; additional and recurring fines are charged in the cash multilateral settlement on subsequent days.

What is the minimum fine and why is it sometimes charged twice?

This is the 0.5% fine (capped at BRL 50,000) applied during the 12 PM final settlement window execution on the failed balance not covered by automatic justifications. The cap applies per debit ILA and per window. Therefore, a rolled-over failure is charged twice: on T+0 for the original ILA and on T+1 for the rollover ILA — these are distinct ILAs, each with its own cap. The minimum fine is not subject to reconsideration.

What is the recurring fine?

This is a 5% fine (uncapped) applied when the same CPF/CNPJ receives an additional T+1 fine more than once within 180 days — a rolling, configurable period that resets with each confirmed charge. This record is agnostic to the PNP/PL: it applies to any participant through which the client operates. If the additional T+1 fine is not charged because the justification was accepted, no recurrence is recorded.

What are automatic justifications? Is any action required to receive them?

No action is required. The system applies them within the 12 PM final settlement window, before charging the minimum fine. There are three non-exclusive types: third-party T+0 (you did not receive the expected amount for the same security from T-1 to T-5), T+1 delivery (you delivered part of what was missing from T+0 on T+1), and third-party T+1 (you had credit to receive in the same window but did not receive it). Each one exempts the corresponding proportion and comes with a statement of the unreceived credits as evidence.

How does the manual justification process work?

After the 12:00 PM window on T+1, a period from T+1 to T+3 opens for the PNP/PL to submit a manual justification via the Monitor for any balance not covered by the automated processes, including the evidence requested by Base. There are specific templates for situations such as allocation errors, ETF arbitrage, and market making. Base analyst reviews the submission by T+5 and classifies the failure as operational or non-operational.

What changes if a failure is classified as operational or non-operational?

This determines the charging of additional fines. If the failure is classified as operational — and the justification is accepted — the additional fines are not charged in proportion to the justification provided. If it is classified as non-operational — meaning the justification was rejected or missing — the additional fines are charged. Minimum fines, which are already charged during the 12 PM final settlement window, are not affected by this classification.

What happens if a failure is not justified within the deadline?

If no manual justification is submitted by T+3, the failure is automatically classified as non-operational on T+4, and the additional fines for T+0 and T+1 are charged on that day. If you have submitted a justification, it will be reviewed: if the analyst does not reach a decision by the end of T+5, the system classifies the failure as operational and the additional fines are not charged.

Can penalties be contested?

Yes, but only for additional fines — T+0, T+1, and recurrence. Minimum fines are not eligible for reconsideration. Requests are submitted via the context menu (right-click) on the ILA row in the Monitor grid, within one business day of the charge (by T+5 or T+7, as applicable).

If a request for reconsideration of a penalty is accepted, what happens to the recurrence?

If the T+1 additional fine that created or updated your recurrence record is reversed due to an accepted request for reconsideration, the recurrence record reverts to the last valid occurrence — the last confirmed and non-reversed T+1 additional fine charge. In other words, the reversal restores the count to the correct state.

The descriptions above are for informational purposes only. The complete rules can be found in the Clearing Base Operations Manual.

Are there both instrument-level and portfolio-level (global) limits in Base's pre-trade risk system?

Yes. Base's pre-trade risk system features both instrument-level and global metrics, allowing for risk monitoring and control across different levels of exposure.

What limits are provided by the pre-trade risk platform?

The platform provides the following metrics:

By instrument:

Potential Buy Balance for Instrument (SPCI)
Potential Sell Balance for Instrument (SPVI)
Maximum Buy Order Size (TMOC)
Maximum Sell Order Size (TMOV)

Global metrics:

Potential Debit Balance (SDP)
Potential Short Sell Balance (SPVD)
Day Trade Financial Balance (SFD)

Protected Mode:

Potential Instrument Balance (SPI)

Other restrictions:

Authorized Market for Buy or Sell (MKTA)

Do pre-trade risk limits account for open orders or only executed trades?

The SPCI, SPVI, SDP, and SPVD metrics account for open orders. The TMOC and TMOV metrics are evaluated with every new order submitted. The SFD metric, however, is only affected by executed trades.

What happens when pre-trade risk limits are reached?

When a real-time metric (SPCI, SPVI, TMOC, and TMOV) reaches its configured limit, the order is automatically rejected. When a near-time metric (SDP, SPVD, and SFD) is breached, the entity enters Protected Mode and the order that caused the violation is canceled, provided it has not yet been executed. In the case of the Day Trade Financial Balance (SFD) metric, in addition to entering Protected Mode, all of the entity's open orders are canceled.

What are the entity blocking options on the pre-trade risk platform?

When an entity (account or document) violates a limit evaluated outside the order's critical path, it automatically enters Protected Mode, allowing only the reduction of open positions for the day. It is also possible to manually activate: Protected Mode, allowing only the reduction of open positions for the day; or Blocked Mode, completely preventing the entry of new orders.

How do metrics behave when an entity is in Protected Mode on the pre-trade risk platform?

When an entity enters Protected Mode, the SPI metric is activated to monitor position inventory. The TMOC and TMOV metrics continue to be evaluated as normal. Other metrics remain updated, but new violations do not trigger additional actions.

Is there a report detailing the consumption of aggregated metrics on the pre-trade risk platform?

Initially, there is not a detailed breakdown of aggregated metric consumption. However, this feature is already on Base's roadmap for future updates.

Is it possible to view the historical consumption of limits on the pre-trade risk platform?

Yes. Historical intraday consumption is available via the portal and API. For previous periods, the maximum recorded consumption for each metric is provided.

Are there maximum limits set by the Exchange on the pre-trade risk platform?

Yes. There are maximum limits set by the Exchange. Requests for increases can be made via the portal, email, or phone.

Are there limits for the executor and carrying firm on the pre-trade risk platform?

Yes. The carrying firm can assign limits to the executor for pass-through relationships. The executor, in turn, can assign limits to the intermediary for "By Order and Account" relationships.

Is it possible to export limits through the pre-trade risk platform?

Yes. Limits can be viewed and exported both through the portal and via API.

Is it possible to import limits via file in the pre-trade risk platform?

Yes. All limit management screens feature file import and export functionality.

Are pre-trade risk metrics evaluated in real-time?

The SPCI, SPVI, TMOC, and TMOV metrics are evaluated on the critical path in real-time. The SDP, SPVD, and SFD metrics are evaluated in near-time, once the order enters the matching engine. For cross orders, all metrics are evaluated in real-time.

Which entities can receive pre-trade risk limits?

Limits can be assigned at the Account, Investor, and Trader levels. For "By Account and Order" relationships, it is also possible to assign global metrics aggregated at the intermediary level.

Are there pre-trade risk limit profiles?

Yes. Profiles are used to facilitate the bulk assignment of limits, while maintaining the ability to create exceptions directly at the entity or instrument level.

How does the pre-trade risk limit hierarchy work?

Between a limit assigned to a profile and a specific limit assigned directly to an entity or instrument, the specific limit always prevails. When limits are assigned at different levels, the most restrictive limit prevails.

Is there a limit per instrument group (Authorized Market) on the pre-trade risk platform?

Yes. It is possible to set limits by instrument group using the Authorized Market (MKTA) concept. The classification methodology will be published soon.

How can I track the limit consumption of my entities on the pre-trade risk platform?

The platform provides a Consumption Ranking accessible via portal and API, allowing for real-time monitoring of the usage levels of the limits assigned to entities.

How can I track the changes made on the pre-trade risk platform?

The platform provides audit reports via portal and API, allowing you to track changes made by authorized users, including modifications to limits, profiles, blocks, configurations, and other relevant events.

How does residual risk control work on Base's pre-trade risk platform?

Base provides a residual risk report calculated based on the stressed economic capacity of the participant's chain. The full methodology will be published soon, and the expectation is that the calculation details will be available directly on the pre-trade portal.

Do pre-trade risk metrics take into account positions from previous days (opening portfolio)?

No. Metrics start at zero at the beginning of each trading session. The only exception is when an entity has open GTC (Good 'Til Canceled) orders, which continue to be included in the calculations.

In the pre-trade risk platform, what happens when a new account is created in the registry? Is the entity created in a blocked or operational state?

By default, new accounts can inherit the settings previously defined for the investor or the structure to which they belong. This allows the account to begin operations with the applicable limits and restrictions already in place, reducing the need for additional manual configuration.

On the pre-trade risk platform, what happens when a new investor or trader is created in the system? Is the entity created in a blocked or operational state?

New investors and traders are automatically associated with the default profile provided by the Base and configurable by each institution. This ensures that the entity is created with the limits, permissions, and restrictions defined in the institution's standard profile, allowing it to begin operations in accordance with pre-established rules.

On the pre-trade risk platform, can an entity in Protected Mode cancel existing orders?

Yes. Protected Mode is designed to help reduce an entity's risk. Therefore, canceling existing orders remains permitted, as does submitting orders that result in a reduction of position.

On the pre-trade risk platform, does the rejection indicate whether the restriction occurred at the executor, carrying broker, or intermediary level?

Yes. Rejection messages identify the source of the restriction, allowing the user to understand whether the rejection was caused by a limit associated with the executor, carrying broker, intermediary, or the monitored entity itself.

Can pre-trade risk limits be changed during the trading session?

Yes. The configured limits can be changed at any time during the trading session, both through the Portal and the API.

What happens to a trade after it is negotiated on Base?

Once negotiated, the operation starts the Base Clearing post-trade journey, which includes the stages of Acceptance, Allocation, Give-up, Position formation, and Settlement. During these stages, the trade is validated, its final beneficiary is identified, and it is managed by the Clearinghouse until it is ready for clearing and settlement.

What is a Central Counterparty and why is it important?

When the Base accepts a trade, the Clearinghouse acts as the Central Counterparty (CCP): it becomes the buyer to the seller and the seller to the buyer. As a result, each participant has the Clearinghouse itself as their counterparty, which eliminates credit risk between the parties and guarantees the fulfillment of settlement obligations.

What is trade Acceptance?

Acceptance is the moment the Clearinghouse verifies that a trade meets the criteria to enter the clearing and settlement cycle. Once accepted, the trade gives rise to two independent operations — one buying and one selling — and is managed by the Clearinghouse. From the moment of Acceptance, the transaction becomes irrevocable and irreversible, subject to the exceptions provided for in the Base Regulation.

What happens if a transaction is accepted without a specified account, or with an invalid account?

Operations are never discarded. If no account is specified, the operation is routed to the Capture Account, allowing for subsequent reconciliation during the Allocation process. If the specified account is invalid, it is routed to the Error Account, ensuring full traceability. In both cases, the system applies appropriate operational handling, maintaining complete control and auditability.

What is Allocation?

Allocation is the stage where the final beneficiary of the trade is identified and the operational details used for settlement are defined, such as the account, the sub account, and, where applicable, the quantity. At the end of the process, the operation must be correctly directed to the client's Normal Account.

What are Transit Accounts?

These are operational accounts used as an intermediary step in the flow, prior to the final settlement in the client's account. They include Master, Intermediary, Admincon, Capture, Brokerage, and Market Maker accounts, each serving a specific purpose. None of these replace the Normal Account: ultimately, the operation must always be directed to its rightful holder.

What is the difference between an Error Account and an Operational Error Account?

These are exception handling accounts with distinct purposes. The Error Account receives operations resulting from non-compliance with allocation rules, such as missed deadlines. The Operational Error Account receives trades resulting from system failures or downtime. The rules for each are outlined in the Base Post-Trade Operational Procedures Manual.

What is a Give-up and what does it transfer?

A Give-up is the transfer, between participants, of the responsibility for risk management and the settlement of an operation. Unlike Allocation, a Give-up does not change the owner of the transaction: it changes who is responsible for it to the Clearinghouse.

Under what conditions can a give-up take place?

A give-up can only take place when a give-up link has already been registered between the involved participants. Without this link, the transaction cannot be given up.

How is a give-up completed?

Once referred, the Destination Participant may expressly accept or reject the referral, where permitted by the rules. Tacit acceptance may also occur if the destination does not respond within the specified timeframe, in which case the give-up is automatically confirmed, as per the Base Post-Trade Operational Procedures Manual. If not accepted, responsibility reverts to the originating participant.

What are the types of Give-up at Base?

The Base provides for two modalities: Brokerage Give-up, which involves a link between the originating and destination participants; and Tri-Party Give-up, which also includes the investor in the link. The concept of transferring responsibility is the same for both; what changes are the links between the participants.

Are there any operations that the Destination Participant cannot reject?

Yes. Market Maker and DMA Session operations cannot be rejected by the Destination Participant, which preserves the specific characteristics of these operating models. If rejection is necessary in these cases, the request is analyzed by the Clearinghouse.

Who can act as an originator and as a destination in a Give-up?

A give-up is always originated by a Full Trading Participant (PNP). The destination can be either a Full Trading Participant (PNP) or a Settlement Participant (PL).

What are the operating hours for post-trading processes?

All processes take place within defined operational windows, which make up the Base Clearing Schedule and are executed in real time. Detailed schedules for acceptance, allocation, and give-up are described in the Base Post-Trade Operational Procedures Manual.

How do I track my operations throughout the post-trade process?

The Base generates real-time operational events and makes them available through various channels: immediate screen updates, monitoring dashboards, APIs, messages, and files for the involved participants. This way, tracking does not rely on manual queries.

What happens when an operational rule is not met, such as a deadline?

When an operational rule is not followed — such as a late indication or allocation, or a change in ownership as outlined in the Base Post-Trade Operational Procedures Manual — the system automatically identifies the occurrence and makes it available for correction. The participant enters the justification directly into the system, eliminating the need for separate signed documents, and every step is recorded to create a complete audit trail.

Do I need to submit any signed documents to justify a rule breach?

No. All processing is handled within the system, in accordance with the authorization levels and permissions defined by the Base. The justification is recorded electronically, and the audit trail — including the user, date, and time — serves as the official record of the event.

Where can I find the detailed rules for each process?

All rules, schedules, and exception handling procedures are described in the Base Post-Trade Operational Procedures Manual (the official reference for participants).

The descriptions above are for informational purposes only. The complete rules are available in the Base Clearing Operations Manual.

What types of collateral are accepted?

Base Clearing accepts local currency, federal government bonds, variable income assets, and bank letters of credit, subject to the applicable operational purposes and the eligibility requirements for each.

How do I deposit collateral?

Collateral deposits can be made through the systems provided by Base Clearing, via the portal or messaging services, in accordance with the operating hours and procedures applicable to each asset type.

Is there a cut-off time for depositing collateral?

Yes. The schedules for collateral movement and processing are published in the Post-Trading Operating Procedures Manual and the Risk Manual.

Do different types of collateral have the same value for risk coverage?

Not necessarily. The Clearing House may apply specific valuation criteria for each type of collateral, taking into account factors such as liquidity, volatility, the portfolio's credit risk, and the purpose for which the collateral was deposited.

How do I track my deposited collateral?

Participants can view information regarding deposited collateral, transactions, releases, and any outstanding issues through the Base Clearing system interface, API, or via messaging services.

Can I use different federal government bonds as collateral?

Yes. Base Clearing may accept various federal government bonds, provided they meet the eligibility criteria outlined in its risk manual.

Can I use any stock as collateral?

No. Only stocks considered eligible by Base Clearing may be used as collateral. You can check the eligibility criteria in the Base Clearing risk manual.

Are both physical and digital bank letters of credit accepted?

Yes. Base Clearing accepts bank letters of credit issued in both physical and digital formats, offering operational flexibility to participants.

Is there a difference in how physical and digital bank letters of credit are treated for collateral purposes?

No. Both can be used as collateral, provided they meet the acceptance and validation requirements defined by Base Clearing and described in the risk manual.

How does the registration of a digital bank letter of credit for collateral use work?

Digital bank letters of credit are submitted and validated electronically, in accordance with the operational procedures established by Base Clearing and the issuing institution.

Can I substitute collateral that has already been deposited?

Yes. Collateral may be substituted, provided that the assets presented meet the criteria defined by Base Clearing and maintain the required coverage.

Can I move or withdraw collateral that has already been deposited?

Yes. You may withdraw or replace collateral, provided that the release criteria required by the Clearing House and described in the risk manual continue to be met.

What happens when collateral is insufficient?

If collateral is found to be insufficient, the participant must replenish the required amounts within the timeframes and procedures established by the Clearing House.

What is the Safeguard Structure?

The Safeguard Structure consists of the mechanisms, resources, and procedures used by Base Clearing to address default events and contribute to market security.

Does Base Clearing have a Settlement Fund?

Yes. Base Clearing has a Settlement Fund that is part of its Safeguard Structure. Base Clearing and Clearing Members must provide collateral in local currency and/or federal government bonds, as established in the Clearinghouse's regulations.

What is the difference between an Operational Debtor and a defaulting participant?

An Operational Debtor is a participant who experiences a payment failure due to a duly proven operational contingency, with the expectation that it will be resolved within the same day. Default, on the other hand, occurs when a financial obligation is not met according to the terms established by Base Clearing, or when the conditions that define an Operational Debtor status are no longer met.

Can collateral be used in the event of a default?

Yes. The collateral deposited by the defaulting participant may be used in accordance with the procedures set forth in the Base Clearing regulations.

How does the Clearing House act in the event of a default?

The Clearing House follows specific procedures to manage default events, aiming to preserve operational continuity and market stability.

What happens to a defaulting participant's positions?

The Clearing House may take the measures provided for in its regulations to manage, close out, or transfer the defaulting participant's positions.

Does a participant's default affect other participants?

As a central counterparty, the Clearing House maintains protection mechanisms and a robust Safeguard Structure designed to ensure the rights of performing participants and prevent the impact of default events on other performing market participants.

Are participants notified of default events?

Communication procedures regarding default events follow the governance, transparency, and confidentiality rules established by Base Clearing.

Does Base Clearing conduct tests to evaluate its protection mechanisms?

Yes. Periodic stress tests are conducted to evaluate the adequacy of coverage resources and default management procedures under various market and liquidity scenarios and conditions.

How does Base Clearing calculate position risk?

The Base Clearing methodology aims to reflect the effective cost of closing out positions and collateral under stress conditions, accounting for factors such as market risk and liquidity, as well as cash flow mismatches over the close-out horizon, by calculating metrics that quantify permanent and transitory economic impacts.

Does the Base Clearing risk model take historical scenarios into account?

The methodology combines historical scenarios, quantitative models, and prospective scenarios, allowing for the capture of both observed and projected events. Prospective scenarios evaluate potential correlation breakdowns, always prioritizing plausibility.

What are the collateralization methods for spot market positions provided by Base Clearing?

Base Clearing provides for two forms of collateralization for spot market positions:

Collateralization using assets owned by the Investor, intended to cover the risks of positions for which the investor is responsible. (OP calculation module - Purpose: Operational Collateral)
Collateralization using assets owned by the Full Trading Participant (PNP) or Clearing Participant (PL), intended to cover the risks of positions for which the participant is responsible. (CP calculation module - Purpose: Operational Balance Expansion)

Does Base Clearing account for the risk of trades not yet allocated to an investor?

Yes. Base Clearing includes the NAC calculation module, which covers trades that have not yet been allocated to a final investor account. Until allocation occurs, the risk remains associated with the responsible Full Trading Participant (PNP) or Clearing Participant (PL).

How does Base Clearing handle the risk of unallocated trades?

Unallocated trades are processed through the NAC calculation module and consume the Operating Balance Expansion of the responsible Full Trading Participant (PNP) or Clearing Participant (PL) throughout the trading session. If they remain unallocated at the end of the day, they may also impact their margin call.

Can proprietary positions held by participants be treated under the Operational Balance Expansion purpose?

No. Proprietary positions held by Trading Participants, Full Trading Participants, Settlement Participants, and Clearing Members must be collateralized by the account holder themselves and are treated within the risk framework as Operational Collateral (OP module).

Can investors belonging to the same economic group as the participant be included for the purpose of Operational Balance Expansion?

No. Investors belonging to the same economic group as the participant must have their positions collateralized by the investor themselves, and are handled within the context of Operational Collateral (OP module).

How does Base Clearing manage position concentration risks?

Base establishes open position concentration limits per asset at the level of the investor, investor group, participant, and market. When a position at any level of aggregation exceeds the established limit, Base triggers the procedures set forth in the Risk Manual to prevent a single agent from accumulating a position large enough to destabilize the market.

How does Base Clearing perform intraday risk calculations?

Risk calculations are updated periodically throughout the day to monitor changes in participant exposures and enable timely risk management actions.

What is the Intraday Risk Limit?

The Intraday Risk Limit (IRL) is the risk exposure value permitted by Base Clearing for each Participant without the need for collateralization during the day. This limit is used solely for intraday monitoring of operations and, in conjunction with the collateral provided to increase the operational balance, defines the participant's available operational capacity.

How are Intraday Risk Limits defined?

Limits are based on factors related to the participants' financial capacity, liquidity, operational profile, and history of risk exposure.

What is the Operational Balance?

The Operational Balance represents a Participant's available operational capacity to take on new intraday exposures. It is calculated as the difference between the Intraday Risk Limit, plus any collateral provided to increase that limit, and the Intraday Risk effectively calculated by the Clearing House.

Can the participant track their Operating Balance?

Yes. Base provides tools for continuous monitoring of the Operating Balance and the exposures associated with the participant.

What happens when there is a breach of the Operating Balance?

In the event of non-compliance, Base may take measures as provided for in its regulations, including requesting additional collateral, requesting the allocation of positions to final investors, or other measures consistent with the identified risk profile.

Does Base Clearing have risk tiers for participants?

Yes. Participants are assigned monthly to tiers that account for the risk taken within their chain of responsibility over a specific time horizon, allowing for risk management that is proportional and appropriate to the risks assumed.

Do the requirements for participants vary according to the risk band?

Yes. Risk bands can influence operational requirements, monitoring criteria, and other controls applicable to participants.

How does Base Clearing oversee the credit risk of Clearing Members?

Base Clearing continuously monitors the economic and financial conditions of all participants to which it has significant exposure, including Clearing Members. This oversight uses financial data and market indicators to assess their ability to meet their obligations to the Clearing House.

What criteria are considered for the admission of a new Clearing Member?

The admission process includes an assessment of the candidate's operational structure, financial capacity, and risk management mechanisms, in accordance with the requirements set forth by Base Clearing regulations.

Is the monitoring of Clearing Members only performed at admission?

No. Requirements remain subject to ongoing monitoring throughout the entire relationship with Base Clearing, with information updates required at least monthly.

Is the supervision of participants proportional to the risks assumed?

Yes. Base Clearing adopts a risk-based approach, considering the size, activity, and exposures under the responsibility of each participant.

Is it possible to view detailed information on the risk calculations?

Yes. Base provides reports containing information on risk metrics, the scenarios used, and other relevant data to help you monitor and understand the calculations.

Which risk reports are available?

Base provides reports related to position closing strategies, financial flows, scenario pricing, and risk metrics.

Does Base Clearing provide a margin simulator?

Yes. Participants have access to margin simulators through the Base portal.

Does Base Clearing conduct stress tests?

Yes. Periodic stress tests are conducted to evaluate the robustness of risk models and the adequacy of protection mechanisms under severe yet plausible scenarios.

How often are stress tests conducted?

Base conducts stress tests at different frequencies, including daily, monthly, and annual assessments, depending on the objective of each test.

Does Base Clearing perform periodic validations of its risk models?

Yes. Risk models undergo regular monitoring, validation, and review processes to ensure they remain aligned with market conditions and applicable regulatory requirements.

Does the Base Clearing model follow international standards for CCPs?

Yes. The methodology was developed in alignment with the Principles for Financial Market Infrastructures (PFMI), adopting practices compatible with internationally recognized CCPs.

Does the Base Clearing margin model aim for capital efficiency?

Yes. The methodology was developed to ensure capital efficiency by leveraging position and collateral netting, the corresponding statistical hedging, and the financial clearing that these enable, while also utilizing the liquidity resources available to Base Clearing.

Does Base Clearing account for correlation breakdown scenarios and extreme events?

Yes. The scenario generation model uses heavy tails and non-Gaussian copula dependence, where the risk factor covariance dynamics account for the breakdown and intensification of correlations during market stress. Furthermore, we incorporate prospective scenarios that stress changes in asset market prices and their correlations.

What is the purpose of the Delivery Failure, Justification, and Penalty Monitor?

How are Official Letters and Announcements published?

What is the procedure to become a Base participant?

To become a participant, the applicant must:

Initial alignment with the Sales team
Provide the necessary data and documents according to the chosen access category
Comply with Base regulations
Be approved according to the access category
Complete operational and technological onboarding

When do the Buy-in, Transfer, and Cash Close-Out positions arise?

What is the Failure Forecast and what is its purpose?

What is a delivery restriction?

Are there both instrument-level and portfolio-level (global) limits in Base's pre-trade risk system?

Yes. Base's pre-trade risk system features both instrument-level and global metrics, allowing for risk monitoring and control across different levels of exposure.

What types of collateral are accepted?

What is the Safeguard Structure?

The Safeguard Structure consists of the mechanisms, resources, and procedures used by Base Clearing to address default events and contribute to market security.

How does Base Clearing calculate position risk?

What is a delivery failure?

Which Data Center will host the Base Exchange physical infrastructure?

The primary physical infrastructure for Base Exchange is hosted at the Equinix SP6 Data Center. The secondary physical infrastructure is hosted at Ascenty Vinhedo 2.

What types of accounts exist in the Base?

The available account types and their respective uses are described in the Post-Trade Operational Procedures Manual, which will be released in due course.

What are the differences between public and private lending options?

What is Voluntary Accelerated Settlement?

How does the securities settlement cycle work at Base?

What is cash settlement?

What happens to a trade after it is negotiated on Base?

Who sees what in the Monitor?

Which instruments are available for trading on Base Exchange?

Stocks, units, real estate investment funds, and ETFs are available for trading. The list of authorized instruments is published via Market Data and on the Base website.

What are the Base participant categories?

The list of participant categories is available for consultation in the “Participants” section of the Base Exchange website.

Why are three positions generated instead of one when handling a failure?

Does the Failure Forecast guarantee the settlement result?

Who can apply a delivery restriction?

What limits are provided by the pre-trade risk platform?

The platform provides the following metrics:

By instrument:

Potential Buy Balance for Instrument (SPCI)
Potential Sell Balance for Instrument (SPVI)
Maximum Buy Order Size (TMOC)
Maximum Sell Order Size (TMOV)

Global metrics:

Potential Debit Balance (SDP)
Potential Short Sell Balance (SPVD)
Day Trade Financial Balance (SFD)

Protected Mode:

Potential Instrument Balance (SPI)

Other restrictions:

Authorized Market for Buy or Sell (MKTA)

How do I deposit collateral?

Does Base Clearing have a Settlement Fund?

Does the Base Clearing risk model take historical scenarios into account?

What is a failure position?

How will participants connect to the Base Exchange infrastructure?

Base Exchange offers various connectivity options to suit different participant profiles, providing flexibility, security, and high availability when accessing its infrastructure.

The connectivity models are:

Cross-Connect
Equinix Fabric
Dedicated circuits (similar to RCB)
RTM (for specific services)
Site-to-Site VPN

What are the possible account statuses?

The available statuses and their respective descriptions are detailed in the Post-Trade Operational Procedures Manual, which will be released in due course.

Who can access the Base Securities Lending platform?

The Base Securities Lending system is accessed by authorized intermediaries on Base as a Full Trading Participant (PNP) or Settlement Participant (PL) on behalf of their investors.

Is Voluntary Accelerated Settlement mandatory?

What is the settlement period for spot trades?

Under which model does settlement occur at Base?

What is a Central Counterparty and why is it important?

What are the types of penalties for delivery failures?

What is the standard trading lot on Base Exchange?

Base Exchange adopts a standard lot size of 1, so the minimum quantity for trading any instrument is 1.

What is the timeframe for access to be granted?

In what order do the delivery failure handling procedures take place?

What information is displayed on the Failure Forecast screen?

Is the delivery restriction always on the total amount?

Do pre-trade risk limits account for open orders or only executed trades?

The SPCI, SPVI, SDP, and SPVD metrics account for open orders. The TMOC and TMOV metrics are evaluated with every new order submitted. The SFD metric, however, is only affected by executed trades.

Is there a cut-off time for depositing collateral?

Yes. The schedules for collateral movement and processing are published in the Post-Trading Operating Procedures Manual and the Risk Manual.

What is the difference between an Operational Debtor and a defaulting participant?

What are the collateralization methods for spot market positions provided by Base Clearing?

Base Clearing provides for two forms of collateralization for spot market positions:

Collateralization using assets owned by the Investor, intended to cover the risks of positions for which the investor is responsible. (OP calculation module - Purpose: Operational Collateral)
Collateralization using assets owned by the Full Trading Participant (PNP) or Clearing Participant (PL), intended to cover the risks of positions for which the participant is responsible. (CP calculation module - Purpose: Operational Balance Expansion)

What does Base automatically attempt before declaring a delivery failure?

Does the Base Exchange provide colocation options, cross-connects, and remote dedicated connections to participants?

What types of links are available?

The available types of links and their respective purposes are described in the Post-Trading Operational Procedures Manual, which will be released in due course.

Which instruments will be available for Securities Lending on Base?

All stocks, units, real estate investment funds, and ETFs available for trading on Base are eligible for Securities Lending, subject to risk criteria.

Which positions are eligible for Voluntary Accelerated Settlement?

What does net settlement or netting mean?

Is every entry settled through multilateral netting?

What is trade Acceptance?

What is the minimum fine and why is it sometimes charged twice?

Are IPOs available on Base Exchange?

Not at the moment. The companies traded on Base Exchange are the same as those on the primary listing exchange.

What happens if the participant does not complete the operational qualification?

If access authorization is cancelled, you need to start a new access request process.

What is the Base Buy-in Mechanism?

Why don't the credits appear on the Failure Forecast screen?

What is the Clearing House's sovereign restriction?

What happens when pre-trade risk limits are reached?

Do different types of collateral have the same value for risk coverage?

Can collateral be used in the event of a default?

Yes. The collateral deposited by the defaulting participant may be used in accordance with the procedures set forth in the Base Clearing regulations.

Does Base Clearing account for the risk of trades not yet allocated to an investor?

Are fail positions “rolled over” to the next day?

Will dark fiber be made available to participants who already have a presence in the B3 colocation facility, or will the connection be carried out exclusively through telecommunications carriers?

What types of investors are available on Base?

The available types are:

Individual
Corporate
Investment Funds
Non-Resident Individual Investor
Non-Resident Investor Other Cases

On which days will Base Securities Lending be available?

The Securities Lending system is available on all days when there is a trading session on Base, which in turn follows the calendar of the exchange where the assets are listed.

Does being eligible and authorized guarantee that I will receive Voluntary Accelerated Settlement?

How do I track my instructions during settlement?

How is the net value used by the Clearinghouse for cash settlement calculated?

What happens if a transaction is accepted without a specified account, or with an invalid account?

What is the recurring fine?

Is there a Market Maker program on Base Exchange?

Yes. Detailed information will be available soon.

What is the deadline for the Participant to update their registration?

How is the Base Buy-in Mechanism price determined?

How does the Failure Forecast screen organize information?

What happens to the instruction when there is an active delivery restriction?

What are the entity blocking options on the pre-trade risk platform?

How do I track my deposited collateral?

Participants can view information regarding deposited collateral, transactions, releases, and any outstanding issues through the Base Clearing system interface, API, or via messaging services.

How does the Clearing House act in the event of a default?

The Clearing House follows specific procedures to manage default events, aiming to preserve operational continuity and market stability.

How does Base Clearing handle the risk of unallocated trades?

Can I find out if I am likely to fail before the official window?

Will there be dedicated connection ports per brokerage firm to the Exchange environment, or only shared connections segregated by VLANs?

Both dedicated and shared connection ports are available, with segregation via VLANs.

Which types of links require approval?

The following links require approval:

Give-up – Executing participant approves
Custodian – Carrying participant approves