Bovespa B3 BR+ Index

Micro Bovespa B3 BR+ Index Future

• The product

  The objective of the Bovespa B3 BR+ Index (IBBR) is to be the indicator of the average performance of the quotations of the most negotiable and representative assets. The Bovespa B3 BR+ Index is composed of shares, units, and BDRs of Brazilian companies listed on B3. As for BDRs, it is necessary that the primary listing of the underlying asset be made on the stock exchanges of the United States (USA).

  The index is is composed of shares, units and BDRs selected based on liquidity criteria and weighted by the market value of the free float, thus reflecting the variations of the assets throughout its validity. The index was constructed to be used as a performance benchmark for the market, investors, and portfolio managers.

  The Micro Ibovespa B3 BR+ Future Contract allows the market to trade future expectations of the cash market without the need to purchase the entire basket of stocks that make up the index and be exposed to the fluctuations of the indicator.

• Specifications

  Underlying	Bovespa B3 BR+ Index
  Ticker	MBR
  Contract size	Micro Bovespa B3 BR+ Index Futures contract multiplied by the index point value in Brazilian Reals, each point BRL 10.00
  Quotation	Index Points
  Tick size	0.05 index points
  Round-lot	1 contract
  Last trading day	The thrid Friday of the contract month
  Expiration date	The thrid Friday of the contract month. If this day is a holiday or a non-trading day at B3, the last trading day will be on the following business day.
  Contract months	Even months
  Settlement on expiration	Cash settlement

• Benefits
  • Instrument for hedging strategy against exposure to equities.
  • Possibility to replicate the behavior of the index without the financial outlay and transaction costs of the spot market.
  • By using the correlation factor of the stocks with the futures index itself, it is possible to carry out hedging operations against the volatility of the stock market, even in different quantities from the composition of the index.
  • Through a single operation, the investor can maintain highly liquid positions without trading individual stocks in the spot market.
  • Allows for arbitrage between the spot market and future market.