6/29/20

Fixed Income ETFs Now Accepted as Collateral by B3

Starting June 29, 2020, B3 will begin to accept fixed income ETF shares as collateral

Starting June 29, 2020, B3 will begin to accept fixed income ETF shares as collateral.

This delivery aims to enhance the development of the fixed income ETF market by offering greater efficiency in capital allocation and further boost the product’s use.

The eligibility criteria and the calculation of the collateral acceptance limit can be found in the BM&FBOVESPA Clearinghouse Risk Management Manual available on B3’s portal.

About Fixed Income ETFs

A Fixed Income ETF is an exchange-traded fund that seeks to reflect the variations and profitability of fixed income indices.

The Fixed Income ETF offers various benefits to investors:

  • Liquidity: As it is an exchange-traded product, it can be bought and sold as if it were a stock;
  • Diversification: With just one transaction, the ETF provides investors with a diverse portfolio of financial products;
  • Transparency: Through the daily disclosure of the index portfolio composition and stock price formation.

Click here for further information.