BDR Centrally-Cleared Flexible Options

The new product expands the possibilities of centrally-cleared OTC derivatives trades


Starting today, BDRs (Brazilian Depositary Receipts) will be included as underlying assets in our Centrally-Cleared Flexible Equity Options module.                                                  With this, the possibilities of trading derivatives in the organized OTC market will be further expanded with B3 acting as central counterparty to the trades. 

Furthermore, by providing derivatives instruments linked to BDRs, we will expand the tools that the market can use for risk management and for creating new investment products. With this new launch, B3 will now hold BDRs in the spot market for lending and in the centrally-cleared and non-centrally cleared OTC derivatives markets. 

Benefits of Centrally-Cleared Flexible Options  

As Centrally-Cleared Flexible Options are not standardized contracts, such as listed derivatives, these options allow flexibility of several contract parameters, for example expiration date, quantity, strike price, barriers and caps. Furthermore, with B3 acting as the central counterparty there is no credit risk for the transaction between the parties.  

Advantages of BDR Flexible Options  

BDRs are securities issued in Brazil and backed by assets issued in the international market. They facilitate investment in foreign companies’ securities without the need to remit funds abroad. 

By providing a flexible option on these BDRs, B3 enables the market to offer its clients yet another product that allows exposure to international assets through the development of strategies to diversify investments or for arbitrage using local and foreign assets.  

Learn more  

View the project details. If you have any queries, write to our Products – OTC Derivatives and COE team at derivativos@b3.com.br  or call us on +55 11 2565-5966 / 2565-5950 / 2565-5956 / 2565-5954 / 2565-6532