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New strategies
Delivery enhances the creation of new strategies with forward contracts in the FII and Unsponsored BDR markets
Forward FII and Unsponsored BDR
Forward FII and Unsponsored BDR contracts coming soon
Forward FII and Unsponsored BDR contracts coming soon
The volumes traded in the FII (Real Estate Investment Fund) and Unsponsored BDR (Brazilian Depositary Receipt) markets have seen significant growth in recent years. In an effort to expand alternatives for investors to diversify their portfolios, B3 will launch forward contracts for these two assets in 2024.
Delivery to the market enhances the creation of new strategies with forward contracts and matched transactions between the spot market and the forward market for FIIs and Unsponsored BDRs, helping increase the liquidity of underlying assets.
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Product benefits
Liquidity
Matched trades between the spot and the forward FII and Unsponsored BDR markets help increase the liquidity of underlying assets
Diversification
Delivery provides new products for investment diversification
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Investors now have another alternative to monetize their assets in the portfolio with a future sale linked to a rate to be contracted.
FORWARD CONTRACT
UNSPONSORED BDR x SPONSORED BDR
REAL ESTATE INVESTMENT FUND
NEW TICKERS AVAILABLE FOR FORWARD MARKET
Forward contracts were developed with the purpose of being a tool for managing price fluctuation risks. Therefore, they serve as a choice to buy or sell shares for a stipulated price through a standardized contract, with settlement on a future date and with no daily settlement of accounts, unlike futures contracts.
BDRs are securities that allow Brazilians to access foreign investments without the need to send money abroad. They are like certificates that represent shares or other assets issued by companies abroad and are traded on B3. There are two types of BDRs:
#Unsponsored BDRs - Issued by a depository institution, without involvement of the foreign company issuing the underlying securities, and can only be classified as Level I, i.e., they have fewer information disclosure and distribution requirements.
#Sponsored BDRs - Issued with the awareness of the foreign company, who participates in the certificate issuance process in Brazil and hires a depository institution to mediate the transaction.
The Real Estate Investment Fund (FII) is a pool of funds intended for investment in real estate-related assets. It is up to the fund administrator, a specific financial institution, to set up the fund and carry out the fundraising process from investors through the sale of shares.
The funds raised from the sale of shares can be used to buy rural or urban properties, built or under construction, intended for commercial or residential purpose, and for the acquisition of real estate-related assets and securities, such as shares from other FIIs, Real Estate Credit Bill (LCI), Real Estate Receivables Certificate (CRI), real estate companies’s stocks, etc.
Find out more in this link
The most liquid Unsponsored BDRs and Real Estate Investment Funds were selected by B3 forward market. The new tickers are:
| Unsponsored BDRs | Real Estate Investment Funds | |||
| AAPL34 | MELI34 | BTLG11 | KNIP11 | |
| AMZO34 | MSFT34 | CPTS11 | MXRF11 | |
| BABA34 | NVDC34 | HGLG11 | TGAR11 | |
| GOGL34 | ROXO34 | IRDM11 | TRXF11 | |
| M1TA34 | TSLA34 | KNCR11 | XPML11 | |
Timeline
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08/26/2024
Go-live
Available to the market
Technical details
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Catalog changes
No catalog changes
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Main systems
Sinacor
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Main related functions
No functions impacted
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Certification roadmap
In definition
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What is the Sinacor version?
v24.1
