Non-CCP Option – Calculated Registration of Commodity Contracts in the New Module

Optional

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Non-CCP Commodities Option can now use the new “Flexible Options” module on the NoMe platform

B3 will make available the calculated registration of commodity contracts in the new "Flexible Options" module ("OPC" financial instrument).

Currently, banks that register Non-CCP Commodities Option can only use the “Strategies and Options” module (“OFCV” or “OFCC” financial instruments) for this purpose and have no access to various enhanced functionalities and the facilities that the new module offers.

Check out the details of this implementation.

Project Tags:

Completed

OTC

Derivatives

Product benefits

Enhanced experience

A broader range of functionalities in derivatives registration, including operational improvements, registration flexibility and new functionalities.

Upgraded infrastructure

Availability of commodity class calculated in the new module's infrastructure allows responding to market demands more quickly and sets the stage for the class shutdown in the old module.

Tax alignment combined with operational optimization

Through registration flexibility and new functionalities delivered by this project, part of the registrations that were enabled via non-calculated registration (e.g. Swap VCP or Strategy) is now calculated in the Option instrument, which is more efficient from a tax standpoint.

What you need to know – More details about the new module

New delivery phase of the new Flexible Options module expands the range of transactions calculated automatically by B3, facilitating trades with simplified registration and easier matching with the counterparty.

With the possibility of registration in the new module on the "Flexible Options" menu, users may register Commodities Options that have specific needs (e.g. parameters in percentage of a reference date) in a calculated manner, thus eliminating the need to enter the quotation manual.

From an operational standpoint, for the commodity class, the new "Flexible Options - OPC" module includes the following, among other provisions:

Automatic generation of IF code for instruments;
Operation Maintenance Pending (“MOP”) function that allows you to use the double command instead of matching a double entry;
Easy to include calculated underlying assets;
Structure for APIs on demand; and
More complete reconciliation files.

From the Trades standpoint, the new module includes several improvements requested by clients that were left undone, such as:

Premium in U.S. Dollars and fixing dates instead of intervals;
Contract parameters in Value or in % of a reference date;
Fixing date in a specific date format (DDMMYYYY) instead of an interval in relation to a date (D-N); and
Possibility of including national holidays in contract verification dates.

The current Options module will continue to function normally until its discontinuance is announced at a future date.

NOTE: We will not automatically make the transition of contracts in stock in the current module to the new module.

· Non-CCP Option – Registration of Calculated International Stock/Index Contracts and Other Functionalities.

· Strategy Registration via Options

NoMe is a B3 platform that provides infrastructure to the OTC market, with solutions in cash assets, securities and centrally-cleared and non-centrally cleared OTC derivatives in accordance with the regulations stipulated by B3, the Central Bank of Brazil and the Brazilian Securities and Exchange Commission (CVM). Learn more.

For further information, please contact your RM or write to the Products – OTC Derivatives and COE team at [email protected]