New BDR Options contracts expand the range of alternatives for trading BDRs.

The BDR market has seen significant growth over the years. To reduce risks and expand the range of possibilities for trading BDRs, B3 will now list BDR Options contracts with characteristics similar to Equity Options contracts.

BDR Options will be available on the market as another hedging mechanism against losses and to create strategies related to the price trajectory. With this, BDRs may increase the exposure and potential return to investors as the capital required to purchase an Option is relatively small.

 

 

Product Benefits

 

New Hedging and Strategy Possibilities

Options contracts expand the range of strategies and position hedging with BDRs.  

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Options contracts are derivative instruments created to mitigate price fluctuation risks by offering a mechanism to hedge the market against possible losses. However, they may also serve to create investment strategies.

Specifications

  • Style: European or American 

  • Size: Quantity of option's underlying assets 

  • Quotation: Option premium expressed in Brazilian Reals per unit or per underlying asset lot depending on the quotation factor with up to two decimal places. 

  • Tick size: BRL 0.01 

  • Expiration date: 3rd Friday of each month 

  • Last trading day: 3rd Friday of each month 

Project phases

In the first phase, the project comprises listing of BDR Options initially traded by authorized Market Makers for the first and second expiration dates and whose underlying asset meets the minimum tradability criteria to be defined by our Technical Risk Committee. 

In the second phase, Options contracts will be enabled for all BDRs whose underlying asset meets the minimum tradability criteria to be defined by the Technical Risk Committee and with extended expiration dates.  

 

Timeline

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Technical Details

  • Impacted systems: GPS Pricing, RTC, Sinacor, TS, CAP
  • Related functions:No related functions.
  • Certification Script:To be defined
  • Sinacor version: Version 22.2
  • Catalog Changes: To be defined

 

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