BEE4 Will Soon Become Brazil’s First Regulated Tokenized Stock Market Thanks to EP3 Technology

The Client

BEE4 is an over-the-counter (OTC) market for small and midsize enterprises (SMEs) and Brazil’s first authorized infrastructure to trade tokenized stocks.

It is among the world’s first initiatives to use blockchain in a regulated environment and is pioneering a movement that has the potential to transform the country’s financial industry and drive economic development.

With the creation of this new market, SMEs can gain access to capital markets, fund their expansion strategies, and improve their visibility. Simultaneously, clients can benefit from IPOs and invest in shares of high-potential firms typically unavailable on traditional exchanges.

The Challenge

Following its 2022 launch, BEE4 began preparing for a pivotal new phase – integration into two major Brazilian brokerage firms midway through 2024. This is a significant step forward for BEE4, which may diversify its investor base, thereby increasing liquidity and driving further development of this new market in Brazil.

Thus, BEE4 evaluated solution providers worldwide, searching for a firm that could provide tailored solutions to capital markets. Leaders sought innovative and flexible technology to adapt to Brazilian financial markets and requirements.

Connamara Technologies’ developers offered BEE4 a detailed and tailored solution using its EP3 exchange platform, which would allow the company to expand into this new market and scale quickly.

BEE4 Connamara

The Solution

BEE4 leveraged Connamara Tech’s APIs to customize their exchange precisely to their specifications, adapting certain rules to align with the Brazilian market.

Both teams worked to structure the required backlog of activities and prioritize these items within the specified deadline. To ensure smooth system connectivity, we allocated a dedicated support team to address BEE4’s questions and concerns throughout the development, testing, and integration phases.

The auction mechanisms specific to BEE4’s operations required modification for their use case, and our team achieved this in a fraction of the time it would have taken with legacy technology or a custom-built solution. This intricate customization and robust operation tools set the stage for a technologically advanced and highly adaptive platform.

The Results

EP3’s required modules of order matching, pre-trade risk, market surveillance, and exchange administration were implemented and integrated into BEE4’s systems.

This implementation is in the final testing phases and is expected to go into production around the first half of 2024. As activities progress, new services offered by our team are under discussion to support the company’s long-term evolution.

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