Registration of NDF CBIO Underlying Asset as a Calculated Curve

Optional

Availability of CBIO underlying asset as a calculated curve in NDF Commodities contracts registration.

Upon completion of this project, the CBIO underlying asset will be enabled for registration in NDF Commodities financial instruments and the automatic capture of the CBIO quotation available on the B3 portal will be provided allowing the registration of OTC Derivatives in a calculated manner.

This initiative brings greater flexibility and cost reduction for those who trade NDF Commodities and currently have to resort to other modules and financial instruments, such as Swap VCP or Swap Strategy contracts where participants must replicate their desired trade.

Project Tags:

OTC

Completed

Derivatives

Product benefits

Simplification

Using the VCP mechanism for Swap or Strategy will no longer be necessary as the NDF CBIO underlying asset will be used as a calculated curve in NDF Commodities contracts.

Automation

It is no longer necessary to obtain the CBIO price from the B3 portal and manually input the quotation to calculate the derivative’s settlement price.

Tax alignment

Tax alignment with the parameters and rates of the NDF financial instrument.

Further details about NDF CBIO registration

See how the update will behave and learn more about NDF Commodities

In much the same manner as it exists today for other NDF Commodities contracts. The difference is that the source for capturing the quotation for calculating the derivative’s settlement price will not be the same as for other commodities, but it will be done through the B3 portal, which discloses T-1 maximum, average and minimum prices of for CBIO trades.

NDF Commodities is an OTC market product and is usually offered by institutions to their clients as an alternative to hedge the price of commodities commonly traded in futures contracts on foreign stock exchanges.

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