On Nov. 14, BVMF launched function in the production environment.
BVMF published Circular letter 157/2024-PRE to launch Implied function in a production environment, as of Dec. 9, 2024, allowing the interaction of offerings.
Highlights
Implied function will allow the interaction of offerings from individual books of product (outrights) with offerings from structured operations books (EDS) of same product.
Eliminate liquidity segregation, generate more depth in order books and enable trades.
Implied IN function will be available, generating synthetic offerings in EDS books.
Application must consider synthetic orders will be cancelled when partially executed.
Also, if there is partial of full execution in maturity giving rise to the synthetic order.
Reopening of order lot with apparent maturity quantity giving rise to synthetic order.
Finally, when there is a stop order triggered for maturity giving rise to synthetic order.
After any of the scenarios occur, the synthetic offering will only be recreated when a new offering event is generated in any futures contract or EDS enabled for Implied.
Eligible derivatives and transactions from Implied will have specific identification.
Simulated trading session in production environment on Nov. 23 and Dec. 7, 2024.
