Trade Lifecycle
The post-trade
cycle
From trade acceptance to settlement.
Trading
Trades executed on the Base Exchange trading platform are transmitted in real-time to the Base Clearing House, initiating the post-trade cycle.
At this stage, executed trades are recorded with unique identifiers and the information required for operational processing, including the participants involved, accounts, asset, quantity, price, and the date and time of the trade.
Capture occurs in an integrated manner with the post-trade environment, enabling operational traceability and continuous updates for the Clearing House's subsequent processes.
Acceptance
Once a Trade is captured, the Clearing House performs the Acceptance process, validating eligibility rules, Participant authorization, the integrity of the Trade data, and adherence to the current operational window.
Validations include, among other points:
• Authorized Participants;
• Valid and active accounts;
• Eligible assets;
• Quantity;
• Price;
• Operational hours;
• Trade uniqueness;
• Consistency of transmitted information.
Accepted trades generate operations and proceed to the subsequent stages of the post-trade cycle.
Allocation
The Allocation process consists of distributing Trades from accepted deals to the final client accounts, while adhering to registration links, operational permissions, and rules established by the Clearinghouse.
The process dynamically updates the Positions module, allowing for consolidated tracking of obligations and settlement previews throughout the trading day — preliminary values that adjust during the day and consolidate at closing.
Validations include:
• Account linking;
• Operational eligibility;
• Quantity available for allocation;
• Instruction integrity;
• Rule breach prevention.
Give-up
The Give-up process allows for the transfer of operational and settlement responsibility for Operations between authorized Participants, in accordance with pre-established Give-up Agreements and operational rules.
The process takes place within the Clearing House's operational window and is subject to the validation of the relevant registration and operational permissions.
Following the receiving Participant's acceptance — whether express or tacit — within the allotted timeframe, the Give-up automatically updates Positions and assigns settlement responsibility to that Participant.
Positions
The Positions Module is the operational interface for tracking the settlement cycle of Base Clearing. Positions are dynamically updated throughout the trading day, reflecting the impacts of Allocations, Transfers, settlements, failures, loans, and other operational events processed by the Clearinghouse.
Consolidation
Consolidated positions by account, portfolio, and Asset.
Error Account
Dynamic monitoring of Positions in Error Accounts, facilitating processing and operational adjustments.
OES
Monitoring and parameterization of Optional Early Settlement.
Dashboard and Queries
Layout that enables the consultation and monitoring of intraday Positions, with various filters and data export capabilities.
Voluntary Accelerated Settlement
Voluntary Accelerated Settlement (VAS) is a Base Clearing operational mechanism that allows for the early settlement of eligible Positions to T+1.
Eligibility is determined based on operational and prudential criteria defined by the Clearinghouse, including: Covered Portfolios, Positions allocated to a final account, the absence of restrictive Corporate Events, and account operational authorization.
Monitoring and parameterization of VAS are performed directly in the Positions Module, allowing the Participant to view: eligible Positions, reasons for ineligibility, T+1 and T+2 segregation, and the operational status of the Position.
Expressions of interest in VAS and the corresponding acceptance by the Custodian must adhere to the schedules defined in the Clearinghouse's operational grid on T+0.
Final determination occurs after the closing of the Allocation window and the processing of the Clearinghouse's operational rules.
T+1
Option to settle eligible Positions early, integrated into the Clearinghouse's operational cycle.
Position Control
Manage interest in VAS within the Client registration or directly in the Positions Module, with a consolidated operational view.
Integrated Rules
Eligibility is automatically validated based on coverage, Corporate Events, and operational criteria.
Better capital management
Anticipate resources and increase your financial efficiency.
Asset Settlement
Asset Settlement is the process of moving financial assets and securities within the Central Depository, following instructions authorized by Custodians and the Clearinghouse's operational rules.
Processing occurs synchronously with Financial Settlement, ensuring a Delivery versus Payment (DvP) model, in which the delivery of assets and financial payment occur in a coordinated, final, and irrevocable manner.
The process includes:
· Generation of Asset Settlement Instructions;
· Authorization by the Custodian;
· Integration with the Central Depository;
· Movement of Assets;
· Automatic update of Positions.
Failure Management
The Clearinghouse has operational and prudential mechanisms designed to handle Delivery Failures of Assets and operational defaults, aiming to reduce systemic impacts and prevent the propagation of failures within the settlement cycle.
The mechanisms are triggered in sequence as the failure persists:
1. Compulsory lending;
2. Base Buy-in;
3. Cash Close-out.
Throughout this process, the Clearinghouse creates the corresponding Failure Positions and applies the applicable operational fines. The sequence is designed to close the failure cycle within a short timeframe, preventing the obligation from dragging on through the settlement cycle.
Base Buy-in
Base Buy-in is the mechanism triggered by the Clearinghouse when a Delivery Failure is not resolved through compulsory lending. Through this process, the Clearinghouse announces its intention to buy back the assets to the market and receives sell offers for the missing assets, executing them at a single price to maximize coverage of the short position and obtain the assets needed to fulfill delivery to the impacted buyer. It may resolve the failure in full or in part. Any portion not covered proceeds to Cash Close-out, a mechanism by which the original trade is cancelled and the impacted buyer is financially compensated at the corresponding market value.
The process includes:
· Activation following an unsuccessful compulsory lending attempt;
· Market communication and receipt of sell offers for the missing asset, ordered by price;
· Execution at a single price to maximize offer fulfillment; full or partial coverage of the Delivery Failure;
· Forwarding of the remaining balance to Cash Close-out, with cancellation of the original trade and financial compensation to the impacted buyer;
· Restriction preventing the defaulting party from submitting offers related to the same Base Buy-in process involving the subject asset, preserving the integrity of the mechanism.
Cash Settlement
Cash Settlement is the processing of financial obligations calculated by the Clearinghouse after Multilateral Netting.
Based on the Multilateral Net Balance (MNB), the Clearinghouse generates financial instructions and operational messages integrated with the Reserve Transfer System (STR), ensuring final, irrevocable, and traceable settlement.
The process includes:
• Financial calculation;
• Generation of Cash Settlement Instructions;
• LDL/STR integration;
• Payment of debtors and creditors under the Delivery versus Payment (DvP) model;
• Real-time operational updates.
