Efficiency
The new product allows for greater tax alignment since Option contracts will be registered in the instrument itself instead of Swap (different taxation).
Strategy Registration via Options
New alternative will bring tax efficiency to customized derivative contracts with Option payoff
Exotic derivative contracts, or contracts with a difference compared to standard derivatives contracts, are qualified as Strategy, a structure whereby the fields necessary for trade registration are fully customized.
The only financial instrument with this mechanism today is the Non-Centrally Cleared Swap. However, often the derivative in question has an Options or Forward payoff. When this happens, the calculation is replicated in the Swap contract, and this can have tax and/or operational implications.
B3 will provide a product that allows better tax alignment due to the different tax rates for Swap and Option contracts.
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Product benefits
Operational ease
Option registration will be carried out in the new Flexible Options module, which already has several operational improvements, registration flexibilities and new functionalities.
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New strategy expands B3 clients' solution portfolio
An Options Strategy will be developed on the NoMe platform using the Derivatives Information Module (MID), where registration of the Strategy part is carried out, and the Flexible Options Module, the latest module for the Options product.
The adaptation enables registration of Options in the corresponding financial instrument, allowing greater tax efficiency since for Swap, taxation follows the regressive table starting at 22.5% and for other derivatives, the rate is fixed at 15%.
Timeline
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12/05/2022
Go-live
Available to the market
Technical details
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Catalog changes
N/A
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Main systems
NoMe System
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Main related functions
NoMe System > Derivatives Information Module and Flexible Options Module
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Certification roadmap
No impact
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What is the Sinacor version?
N/A
