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The Stock Exchange (B3) today launched five new products for retail and institutional investors. The novelties are the mini dollar options; currency futures traded in US dollars; Futures option contract; equity and unit futures contracts; and a future micro-contract of one of the largest US indices, Standard & Poor's (S & P 500).
Products will be available from the 10th of this month in brokerage firms licensed to carry on derivatives, underlying badets, benchmarks or indices, such as the S & P 500.
In dealing with more complex contracts, the idea is that products such as the mini dollar, future shares and future microcontracts of the S & P 500 are more sought after by Afonso Rossato investors , B3 Customer Relations Manager, says experienced people rather than beginners
Options for future ID and future currencies tend to be more focused on institutional clients. Given the flexibility, the idea of B3 is to attract more investors.
Practical Operation
For future foreign exchange contracts, the new product will offer greater parity of all existing currencies with the dollar. . That's what says Marcos Skistymas, responsible for customer relationship with the stock market.
Today, the stock market only works at par with the real, which means that the investor has to sign two contracts to expose the dollar. The new dollar option appears as a contract to bring greater flexibility in terms and price competitiveness for the Brazilian market that has lost room for the market.
offshore, due to liquidity. In the mini, the dollar option has a value of 10,000 USD. Today, there are already two market makers for this product, Itaú and the international company Optiver.
The future options of DI will provide a more structured way of operating interest rates and volatility, in addition to offering different time frames. The advantage is that the operation can result in lower costs and greater efficiency for investors.
Another novelty is the equity futures contract, a product demanded by the world's major stock exchanges. The idea behind this new badet is to serve as a way to protect its investments and use it for structured operations.
S & P 500 micro-contracts were created to complement the family of mini-contracts and refine the Brazilian market. Currently, B3 is offering a future contract option for S & P, created jointly with CME Group, one of the world's leading derivatives groups.
"The arrival of S & P micro-contracts represents here the most liquid and affordable way to offer one of the most traded indices in the world to Brazilian investors." This market represents 80% of the US equity market, "said Charles Farra, executive director of CME International Market Development, specifically in Latin America.
More launches for 2019
The prospect of B3 is more product launches by the end of 2019, the goal being to better serve the individual investor and make the Brazilian market more competitive compared to the foreign market.
The goal is to offer a greater diversity of products to offer more instruments capable of enabling differentiated strategies and which can generate a reduction in costs for the investor.
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