The new strategies deliver an efficient way to trade U.S. Dollar-denominated yield curve

On Monday (July 25) B3 will launch two new strategies on the Forward Rate Agreement (FRA) on ID X U.S. Dollar Spread (FRC) transaction.

FRC strategies combine, in a single transaction, trading two FRA on ID x U.S. Dollar Spread starting at a future date. The goal is to eliminate the risk of executing different order books for each FRA on ID x U.S. Dollar Spread and to reduce costs.

The FRC strategies will bring greater transparency to the market as investors can observe exactly what is being traded in each type of strategy via market data. The fees are in line with the strategy's exposure and allow for a 70% discount for day trades between strategies and outrights with the potential to leverage the volume of trades.

All information and specifications of the EDS (Exchange-Defined Strategies) – Strategy Trading project can be found on B3 Clients webpage. Make sure to download the files under “Support Material” where you can find the specifications for FRA on ID X U.S. Dollar Spread (FRC).

Another possibility to further learn about the subject is to attend the Project's Technical Workshop online. To watch the video, just make a quick registration on TVB3 if you don't have an access yet.

For queries on how the new product works, please contact your RM.