Forward Equities

  • Specifications
    UnderlyingEquities
    Contract sizeThe volume of forward’s underlying securities is established between the parties in accordance with the limits established by B3.
    SettlementForward trades may be settled in the following ways:
    a) On expiration: settlement on the expiration date through the buyer paying the settlement value calculated based on the forward price, and the delivery of the underlying security by the seller.
    b) Early: the buyer of the contract may request early settlement (partial or full) of the contract through payment of the value agreed for the forward, before the expiration of the trade, with no lien for the seller, within the timeframes set forth below:
    i. early settlement for the following business day, which may be requested up until the business day prior to expiration;
    ii. early settlement for two business days after the request, which may be requested up to two business days prior to expiration;
    iii. early settlement for three business days after the request, which may be requested up to three business days prior to expiration.
    c) Net early: through sale on the cash market, by the buyer, of the Underlying purchased on the forward market. Net early settlement may be requested within the timeframes set forth below:
    i. early settlement for the following business day, which may be requested up until the business day prior to expiration;
    ii. early settlement for two business days after the request, which may be requested up to two business days prior to expiration.
    Expiration dateThe expiration date is established between the parties, observing the minimum period of 16 calendar days and maximum of 999 calendar days as of the registration date of the contract.