Upon implementation of Phase III of Non-Centrally Cleared Flexible Options with calculated payoff, registration of International Indices class with underlying assets will be available. As a result, registrations done via VCP Swap to replicate the Options payoff can now be carried out directly in the new module, using the Non-Centrally Cleared flexible options as a financial instrument. 

Among the product’s evolution and its key features are:   

• The possibility of informing the following upon the contract’s registration: strike price, barriers and caps in percentage of the quotation of a reference date; the option and the reference quotation date to be used in the calculation of the contract’s financial result.

• Automatic generation of the contract’s IF Code (Financial Instrument) thereby making it unnecessary to create a code by the institution.  

• Availability of the Maintenance of Outstanding Trades menu, allowing the counterparty to just “Confirm” the registration without the need to perform a second entry. 

• The contract’s fixing date is entered in date format (DD/MM/YYYY) and no longer as an interval (D-X), thus avoiding problems related to calendars.

The current Options module will continue to exist normally for the calculated curves until its discontinuity is informed. Note: B3 will not perform any automatic treatment of contracts in stock in the current module during their transition to the new Options module.

Flexible Options are traded in the organized OTC environment adopting non-standard rules and functionalities, and the definition of the trade is at the parties’ discretion. As they are non- standardized contracts, these options allow trading different contract parameters.

Swap contracts are traded in the organized OTC environment. These trades involve the exchange of cash flow based on the comparison of profitability between two indexes. Therefore, the institution assumes both positions – long in one index and short in another.