4/23/21

U.S. Dollar “Casado” Now Available for Electronic Trading

The launch of the product has been highly anticipated by the market and offers trading efficiency, cost reduction and greater transparency to price formation in the secondary FX market

Starting today, B3 launches the trading of the U.S. Dollar “Casado” on screen. The new product meets market demand by integrating U.S. Dollar Future and Spot U.S. Dollar trades, which were previously carried out separately between the listed market (U.S Dollar Future) and OTC market (Spot). From now on, the U.S. Dollar “Casado” can also be traded entirely in an electronic environment and in an integrated and automated manner. OTC trades continue to be available to our clients.

The new product was created together with the institutions that use to trade in the secondary foreign exchange market and emerges as another mechanism to boost the development of this market, while increasing traded volumes. In this respect, B3 offers a fee reduction for on-screen trades.

The U.S. Dollar “Casado” also offers trading efficiency gains. With a single ticker – CSD2 – U.S. Dollar Future and Spot U.S. Dollar trades will be automatically generated. Trading is carried out via Puma Trading System, which also brings greater transparency to the formation of “Casado” prices and, consequently, to the Spot U.S. Dollar in the secondary FX market.

“This initiative reflects B3's goal of listening to the demands of our clients and delivering increasingly complete solutions that meet market needs,” says Marcos Skistymas, head of Products at B3. 

How it works

Trading U.S. Dollar “Casado” on screen is allowed for financial institutions authorized to trade in the secondary (interbank) FX market by Brazilian Central Bank and is provided through brokerage houses. The trading dynamics are the same as already adopted in other exchange-traded contracts.

The CSD2 ticker is traded at a difference of points, which represent the difference between the U.S. Dollar Future and the Spot U.S. Dollar price. The price of the U.S. Dollar “Casado” traded on screen may have a positive or negative sign, which will be the opposite to the “Casado” sign traded in the OTC market.

This occurs so as to maintain a dynamic “order book” in the electronic environment. All U.S. Dollar “Casado” trades simultaneously generate two transactions: one U.S. Dollar Future, based on the last price traded at the time of registration of the transaction, and one Spot U.S. Dollar of a reverse nature (future + traded difference) to be settled in two business days.

Trading is done in an integrated manner via Puma Trading System using the CSD2 ticker. Both trades are processed and settled separately at the B3 Clearinghouse and FX Clearinghouse.

Learn more

Check out available information on B3 Clients website. For further information call us on +55 11 2565-5830 and 2565-7457.