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Size
Attracting new investors
The reduction in the contract size makes it easier for new investors to buy into the product.
Reduction in Options on Ibovespa Contract Size
The average price of a traded contract will fall from BRL5,000 to BRL50
The average price of a traded contract will fall from BRL5,000 to BRL50
In order to increase the Options on Ibovespa liquidity and make it more accessible to investors, we will reduce the size of the Options on Ibovespa contract. Currently, the contract price is equivalent to the Bovespa Index value in points multiplied by the value of each point (BRL1).
As a result, the average premium (price) traded is quite high (around BRL5,000) when compared to equity and ETF options, where the average premiums range from BRL0.50 to BRL2.00.
From now on, the value of each point of the Options on Ibovespa contract will be changed from BRL1 to BRL0.01. Thus, the contract size will be reduced by 100 times and this will lead to an average traded premium of BRL50, facilitating the attraction of new investors.
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Product benefits
Greater liquidity
As new investors are attracted to the product, liquidity tends to increase.
Greater flexibility
Smaller contracts tend to make investors' positions more accurate, thus boosting liquidity.
Cost reduction
Reducing the contract size tends to reduce the cost of entering and exiting investors' positions.
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The reduction in the size of the Options on Ibovespa contract tends to boost this market’s growth.
This project highlights Options on Bovespa Index and introduces them as an alternative for all types of investors. As observed in other index options markets, the trend is for smaller contract sizes to lead to a significant increase in the product's liquidity.
Timeline
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10/31/2024
Disclosure plan
Release plan disclosure
Technical details
Catalog changes
No catalog changes
Main systems
No system impacted
Main related functions
No functions impacted
Certification roadmap
Optional and not available
What is the Sinacor version?
No impact
