DI Futures - Tick Size Change for Contracts with Maturities of up to 3 Months

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Greater price accuracy of short DI Futures contracts

B3 reduces tick size of DI Futures contracts (DI1)

In seeking to bring greater price accuracy and protection to investors, B3 will reduce the tick size of DI Futures Contract (DI1) with maturities of up to three months.

In this case, the minimum price variation of the first three maturities will go from 0.002% to 0.001%, thus correcting an asymmetry in relation to the tick size of longer maturities, while mitigating possible systemic and operational difficulties.

The chage was approved by the Brazilian Securities and Exchange Commission (CVM) and aligns the tick size with the volatility level of the first three maturities, which is lower due to greater predictability of the Monetary Policy Committee (COPOM) decisions on the Selic rate, when compared to contracts with longer maturities.

The new measure will increase price accuracy in DI Futures transactions and will enable strategy trading through the Implied functionality, making the product even more attractive to investors.

Project Tags:

In Progress

Interest rate and currencies

Listed

Derivatives

Listed

Product benefits

Greater price accuracy

Thus facilitating the adoption of strategies like hedging, arbitrage, directional (i.e., short selling), as well as leveraged strategies.

Reduction of spread costs in DI Futures trading

Spread cost reduction

Lower cost for investors to enter and exit a position in the buy and sell order book in the futures market.

Greater safety to trade DI Futures contracts

Better hedging for investors

Improvements will mitigate potential systemic and operational hurdles.

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New tick size will bring greater price accuracy and protection for investors, eliminating systemic and operational hurdles, while encouraging the development of the futures market.

.Changing the tick size for the first three months of DI Futures (DI1) will mitigate possible systemic errors for both B3 and its clients, enabling strategy trading, standardizing the contract price and a tick size adherent to the volatility of contracts with shorter maturities.

The DI Future (DI1) is the main Brazilian interest rate contract. It allows trading the expected average daily Interbank Deposit (DI) rate over a given period. Through this instrument, investors can hedge themselves against interest rate fluctuations, in addition to seeking gains through speculative strategies and arbitrage strategies between markets.

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