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By trading U.S. Dollar currency futures rollover structures in a single transaction.
U.S. Dollar Currency Futures Rollover
U.S. Dollar Futures Rollover
Banks, non-resident investors and local investors using foreign currency futures will soon be able to trade future expectations in U.S. Dollars (USD).
The U.S. Dollar Futures Rollover is a structured transaction that enables investors to simultaneously trade two contract maturities, whether sequential or not, disclosing their intention to buy and sell assets (open outcry) at the price difference between both maturities.
The transaction is therefore executed in a single order book, thus reducing operational risks.
Sign up and follow up the project
Product benefits
Risk reduction
Reduced execution risk by trading two different contract maturities in a single transaction.
Trading ease
Another arbitrage tool to trade price differentials between maturities.
Trade price differentials for two contracts in a single transaction
New product streamlines trading U.S. Dollar futures contract rollover structures.
Rollover transactions allow two maturities of a given futures contract to be mutually traded through exchange trading at the price difference between the maturities.
Typically, investors who wish to migrate their positions to a future date seek greater liquidity in certain asset maturities in their portfolio. Or investors interested in arbitraging or speculating with price differentials between maturities.
Currently, the trade must be executed by contract in separate books, entailing operational risks and costs related to two transactions. With the U.S. Dollar Futures Rollover, this is now done in a single book. Trading this product is very similar to U.S. Dollar Rollover (DR1).
Timeline
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01/18/2023
Start of Certification
Start of Certification
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05/29/2023
Go-live
Available to the market
Technical details
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Catalog changes
No catalog changes
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Main systems
Sinacor
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Main related functions
No functions impacted
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Certification roadmap
Optional and not available
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What is the Sinacor version?
v22.2
