B3 S.A. (Brasil, Bolsa, Balcão) continues to innovate the Brazilian trading landscape with the Puma B3 trading platform. Recently, B3 introduced two new direct market access (DMA) interfaces: the B3 Binary Unified Market Data Feed (UMDF) and the B3 Binary Order Entry interface. These updates bring significant improvements in terms of speed, efficiency, and overall trader experience.
Let’s break down what these changes mean for traders and how they’re likely to impact the future of financial markets in Brazil.
What’s new?
B3 Binary Unified Market Data Feed (UMDF) SBE Market Data feed
The new B3 Binary UMDF uses Simple Binary Encoding (SBE), which offers lower latency compared to the previous FIX/FAST feed. This is a UDP multicast-based feed that supports equities, derivatives, and FX on the Puma trading system. The key advantage is that the new feed reduces encoding and decoding times, making it more responsive for traders relying on real-time data.
The Binary UMDF feed provides a full order book depth through Market By Order (MDO) functionality, although it does not currently support Market By Price (MDP) or Top Of Book (TOB). Additionally, there’s no TCP recovery channel for gap filling, meaning firms will need to adjust accordingly if migrating from the previous FIX/FAST feed.
B3 Binary Order Entry (B3 BOE)
B3 also launched the Binary Order Entry interface, which uses the FIX Performance Session Layer (FIXP) and SBE for a faster, more efficient order management system. This new interface runs in parallel with the older FIX 4.4 protocol for order entry, giving firms the option to transition gradually. However, the Binary Order Entry interface provides improved performance and lower latency, making it an attractive choice for firms looking to optimise their trading systems.
Technical impact and considerations
With the new B3 Binary interfaces operating alongside the existing FIX/FAST interfaces, firms are facing a critical decision—whether to migrate now or stick with the existing technology. The new Binary feeds offer clear advantages in terms of speed and efficiency, but there are functional differences to keep in mind. For instance, while the Binary UMDF offers full order book depth, it lacks some features like Market By Price and Top Of Book data.
Because of these differences, careful review of the B3 specifications and roadmap is essential for firms considering the switch. While the improved latency profiles of the Binary interfaces are compelling, the decision to migrate should balance performance gains against the investment required in development and integration.
