Trader and Firm Identification
BVMF uses unique user IDs for the Order API connections. When ordering UMDF connectivity, note that TT’s BVMF Gateway will only make use of the Market by Order price feed. The UMDF platform is available via multicast, but traders need to obtain exchange credentials for the EntryPoint platform for order management. Also, in order to have access to the exchange’s PUMA electronic trading platform, traders must be registered to a BVMF-licensed brokerage firm.
The following credentials are distributed by BVMF:
- EntryPoint FIX SenderComp ID (separate sessions needed for derivatives and equities access)
- TCP Recovery FIX SenderComp ID
- EntryPoint FIX session password
- EntryPoint FIX TargetComp ID
- Desk Trader ID (if applicable)
- Sender Location ID
- Exchange IP Address (2)
- Exchange port (2)
To start trading in the Brazilian Financial and Capital Markets, non-resident traders need to open a 2689 Account. It is a mandatory requirement issued by the Brazilian Monetary Council in the year 2000 and allows nonresident investors to trade and invest in the same portfolio products available for resident investors in Brazil. Refer to the exchange http://www.bmfbovespa.com.br/en-us/international-investors/opening-an-account/opening-an-account.aspx?Idioma=en-uswebsite for information about opening an account.
Desk Traders and DMA Traders
BVMF identifies traders as either “Desk Traders” or “DMA Traders” in their system. These roles are defined as follows:
- Desk Trader: A broker who is a member of brokerage house that has a trading membership with BVMF.
- DMA Trader: Any other trader who is not a member of a brokerage house, but is still required to have a trading and clearing relationship with an exchange-approved firm.
Desk Traders and DMA Traders both have “DMA” access to the PUMA trading platform via any of the exchange-approved connectivity options. Both enter orders directly into the system via the BVMF Gateway, which can be configured to distinguish between Desk Trader and DMA Trader sessions.
BVMF requires the entering trader or executing trader to be identified in the FIX messages for all order actions entered via the PUMA electronic trading platform. The exchange defines these roles as follows:
- Entering Trader: a DMA or Desk Trader who initially submits an order.
- Executing Trader: a Desk Trader who is modifying an existing order on behalf of another trader.
To meet BVMF requirements for identifying traders within the PUMA platform, the BVMF Gateway identifies the entering trader or executing trader in the FIX messages for each order action sent to EntryPoint.
Desk traders work for a brokerage firm and are assigned three-character trader IDs by BVMF. The trader IDs for DMA traders are defined by the brokerage firm and can be up to 25 characters. Either value is used to identify order actions of Desk traders and DMA Traders in the FIX messages sent to/from the EntryPoint server via the BVMF Gateway.
Even though DMA trader IDs can be 25 characters, there is an 11-character limit in TT User Setup when entering trader IDs (i.e., the “T” in an MGT) for TT Gateway logins.
Firm (Counterparty) Identification
All brokerage firms that have a trading and clearing relationship with BVMF have an assigned counterparty code, which is publicly available and accessible via the exchange website. The exchange also makes the counterparty codes available in the market data on the UMDF price feed.
BVMF requires the entering firm or clearing firm to be identified in the FIX messages for all order actions. These roles are defined as follows:
- Entering Firm - The firm with a trading membership at the exchange. It may be a brokerage house or the default clearing firm. The firm is identified by an exchange-assigned numeric code, which is provided on each order action in Entrypoint and is available in the market data (on both book depth and trades) as the counterparty code. The BVMF Gateway can be configured to identify the entering firm in the FIX messages for all supported order actions.
- Clearing Firm - This identifies the trading membership of a clearing firm. The ability to change the default clearing firm is currently not supported by the BVMF Gateway.