Reduction in the Copom Option Contract Point Value

Mandatory

Democratizing access to Brazilian monetary policy derivatives

Investors have increasingly sought more alternatives to diversify their portfolios and, to support them, B3 has been improving its products in an effort to make them more accessible and attractive to an increasing number of people. Currently, the Copom Option contract is being improved.

We will soon reduce the value of the Copom Option contract point, which is used to calculate the financial volume of a transaction. The value, which is currently BRL100.00 per point, will drop to BRL1.00, thus enabling smaller amounts to be traded. In practice, the pay-off per contract will drop from BRL10,000.00 to BRL100.00.

As well as democratizing access to derivatives related to the Brazilian monetary policy, the change allows for greater granularity in transactions by investors who already trade in Copom Option, while reducing portfolio exposure and offering greater flexibility to the market.

Project Tags:

Trading

Listed

In Progress

Listed

Interest rate and currencies

Pricing

Clearinghouse

Product benefits

Exposure

Reducing the financial value of the contract reduces the investor's exposure.

Granularity

Reducing the financial value of the contract reduces the investor's exposure.

For all investors

Different investor profiles will provide access to a market previously restricted to higher trading volumes.

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Reducing the contract value point increases trading possibilities and attracts new investor profiles.

Point value: Each contract maintains the 100 points size, but the point unit value will change from BRL100.00 to BRL1.00.
Pay-off: Reduction in the point value changes the gain per contract, which will now be BRL100.00, instead of BRL10,000.00.

The Copom Option Contract allows investors to trade expectations related to Brazilian economy basic interest rate – Selic – as defined by the Monetary Policy Committee (Copom) of the Central Bank of Brazil.

Learn more.