Onboarding Incentive Program
New Nonresident Investor Incentive Program – Cycle 2023.This policy is effective as of July 27, 2023, and will remain in effect until June 28, 2024
Purpose
B3 presents the Onboarding Incentive Program, an exclusive opportunity for nonresident investors wishing to trade on B3, the largest stock exchange in Latin America. The Program was developed with the purpose of encouraging your success by offering several unique benefits.
By participating in B3’s Onboarding Incentive Program, you will have access to points that can be used as discounts on trading and post-trade fees for specific products.
Adhesion
To join the Onboarding Incentive Program, investors must sign the Instrument of Agreement available at the end of the document. It is important to select the derivatives contracts and/or cash equities market securities of the investor’s interest in accordance with the list of Eligible Products.
The Firm’s Instrument of Agreement must be submitted to B3 by a trading participant (PN) or full trading participant (PNP), which will be responsible for verifying the firm’s powers of representation by filing a request with B3’s Service Portal at “Programa de Incentivo para Novos Operadores Não Residentes – Ciclo 2023”, which can be accessed at atendimento.b3.com.br/programadeincentivor
B3 will analyze the request to join the Onboarding Incentive Program, and once compliance with all of the requirements has been confirmed, it will inform the requesting PNP, PL or PN of the Investor’s approval by email and/or automatic message.
Eligibility
All Nonresident Investors (Investors) are eligible to be participants in this Onboarding Incentive Program if they:
(i) Trade in accordance with National Monetary Council rules;
(ii) Trade through individual or collective accounts;
(iii) Have neither traded in nor held any open interest in the listed markets managed by B3 in the 24 months prior to their inclusion in this Onboarding Incentive Program. B3 may, at its sole discretion and upon the submission of a justification by the Investor, dispense Investors from this requirement if they have not spent all the points in the previous version (valid until June 30, 2023) of the Onboarding Incentive Program;
(iv) Are not part of a business group with and have no common management link with Investors that do not comply with the eligibility requirement set forth in item (iii) above.
Timeframe
Investors can join the Onboarding Incentive Program by June 28, 2024. If it is extended, B3 will inform the market of the new timeframe.
Interested investors may formally join the Onboarding Incentive Program within 150 days of their first participation in a trading session. If they exceed this deadline, they may join the Onboarding Incentive Program at B3 judging committee’s sole discretion upon submission of a justification by the Investor and sent to their designated Relationship Manager (RM) from the international team.
Withdrawal
In the event that an institution chooses to withdraw from the Onboarding Incentive Program Cycle 2023 before the end of the full term, the firm must send an email to the designated RM from the international team.
Calculation Rules
Investors may choose up to 40 stocks that must be specified in the Instrument of Agreement and they shall comply with the 70% minimum percentage of day trades for the selected stocks on a monthly basis. If they trade in options on single stocks, they may choose up to 30 underlying assets to comprise this group of products. For the derivatives market (futures and options), there is no minimum percentage requirement of day trades.
Eligible Products
The products listed below are considered Eligible Products for the purposes of the Onboarding Incentive Program, whose interest must be stated by the Investor in the Instrument of Agreement.
Interest Rates Group
- One-Day Interbank Deposit Futures Contract (DI1)
- DI x IPCA Spread Futures (DAP)
- Call and Put Option on Average One-Day Interbank Deposit Rate Index Contract (IDI)
FX Group
- US Dollar Futures Contract (DOL)
- Mini US Dollar Futures Contract (WDO)
- Structured US Dollar Rollover Transaction (DR1)
- Structured Mini US Dollar Rollover Transaction (WD1)
- Australian Dollar Futures Contract – USD pairs (AUS)
- Canadian Dollar Futures Contract – USD pairs (CAN)
- New Zealand Dollar Futures Contract – USD pairs (NZL)
- Euro Futures Contract – USD pairs (EUP)
- Swiss Franc Futures Contract – USD pairs (SWI)
- Japanese Yen Futures Contract – USD pairs (JAP)
- Chinese Yuan Offshore Futures Contract – USD pairs (CNH)
- Pound Sterling Futures Contract – USD pairs (GBR)
- Turkish Lira Futures Contract – USD pairs (TUQ)
- Argentine Peso Futures Contract – USD pairs (ARS)
- Chilean Peso Futures Contract – USD pairs (CHL)
- Mexican Peso Futures Contract – USD pairs (MEX)
- South African Rand Futures Contract – USD pairs (AFS)
- Norwegian Krone Futures Contract – USD pairs (NOK)
- Swedish Krona Futures Contract – USD pairs (SEK)
- Russian Ruble Futures Contract – USD pairs (RUB)
Equities Group
- Cash Equities (stocks, BDRs, ETFs, units, investment fund shares, subscription warrants, subscription receipts, subscription rights)
- Ibovespa Futures Contract (IND)
- Mini Ibovespa Futures Contract (WIN)
- Call and Put Options on Ibovespa (IBOV)
- Structured Ibovespa Rollover Transaction (IR1)
- Structured Mini Ibovespa Rollover Transaction (WI1)
- Options on Single Stocks
Commodities Group
- Cash Settled Live Cattle Futures Contract (BGI)
- Cash-Settled Corn Futures Contract (CCM)
- 4/5 Arabica Coffee Futures Contract (ICF)
- Cash Settled Hydrous Ethanol Futures Contract (ETH)
Incentives
Investors will be granted the incentives until total points usage, or for up to 18 months from the date of the Investor’s registration in the Onboarding Incentive Program, whichever occurs first. B3 will formally specify the date of the Investor’s registration in the Onboarding Incentive Program.
Each contract or equity asset traded represents a quantity of points, regardless of the nature or type of security, contract month, term, or type of equities asset, as shown in the following table.
| Access Model | Total points | Maximum points limit per product | |
|---|---|---|---|
| Model 1 | Investor who trades on B3 through an account related to CMN Resolution 2,687. | 40,000 | No limit established |
| Model 2 | Investor who trades on B3 through an account related to CMN Resolution 4.373, whose trading orders are entered from outside of the B3 co-location environment, using proprietary systems, those of the brokerage house or of the provider. | 80,000 | No limit established |
| Model 3 | Investor who trades on B3 through an account related to CMN Resolution 4,373, whose trading orders are entered from within the B3 co-location environment, using proprietary systems in their hosting unit(s) contracted directly from B3 or via the brokerage house. | 200,000 | Up to 100,000 points in a single Eligible Product |
Program of Points
Each contract or equity asset traded represents a quantity of points, regardless of the nature or type of security, contract month, term, or type of equity asset or option type, as shown in the table below:
| Product | Points per contract |
|---|---|
| Interest Rate Group | |
| DI1 | 0,13 |
| DAP | 0,23 |
| IDI | 0,03 |
| FX Group | |
| DOL | 0,68 |
| WDO | 0,14 |
| DR1 | 1,35 |
| WD1 | 0,35 |
| AUS, CAN, NZL, EUP, SWI, JAP, CNH, GBR, TUQ, ARS, CHL, MEX, AFS, NOK, SEK e RUB | 0,23 |
| Commodities Group | |
| BGI | 0,31 |
| CCM | 0,10 |
| ICF | 0,66 |
| ETH | 0,74 |
| Equities Group | |
| IND | 0,19 |
| WIN | 0,03 |
| IR1 | 0,51 |
| WI1 | 0,10 |
| Product | Product Points per BRL1.00 traded |
|---|---|
| Calls and Puts on IBOV | 0,00012 |
| Cash equities (stocks, BDRs, ETFs, units, investment fund shares, subscription warrants, subscription receipts, subscription rights) | 0,000040 |
| Options on Single Stocks | 0,00019 |
Calculation of Points
B3 will calculate the number of points used daily. While the balance of usable points remains positive, and until their link to the Onboarding Incentive Program expires, Investors will be exempt from all fees and charges on the products they designated when they joined the Onboarding Incentive Program
Upon completion of the 18-month timeframe for using the incentive or when all points available have been spent, whichever comes first, B3 will adjust its systems and then resume charging to the Investor’s account all fees and charges applicable to each transaction executed, in accordance with the fee policy in force.
Example
Suppose that at the end of the 10th month of participation in the Program, a trader with 200,000 points has traded the following quantities of contracts:
| Product | Traded Contracts | Status |
|---|---|---|
| DI1 | 500,000 | 500,000 x 0.13 = 65,000 points |
| DOL | 150,000 | 150,000 x 0.68 = 102,000 points |
| IND | 5,000 | 5000 x 0.19 = 950 points |
So far, the Investor has used 167,950 points out of a total allowance of 200,000 points, leaving 32,050 points for use in the next eight months as long as no more than 100,000 points are spent on a single Eligible Product.
Further information about registration and the Program can be found in the following Circular Letter
The registration instrument can be found in the Instrument of Agreement