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B3 hereby announces the new Market Maker for the Cash-Settled Corn Futures Contract (CCM). Seara Alimentos Ltda has been selected as the institution to carry out this mandatory daily activity as of tomorrow (May 10). This contract is quoted in Brazilian Reals per 60-net kilogram bag and its underlying is Brazilian yellow corn in bulk, with regular odor and appearance, hard or semi-hard from the latest crop, with maximum 14% moisture.
Seara Alimentos Ltda will be active as a Market Maker from May to December 2017, for the May and September 2018 contract months. During these periods the selected institution must be present for 80% of the day in trading sessions, broadening price formation in the corn futures market. The minimum quantity of orders is 25 contracts, respecting a maximum bid-ask spread of 2%.
Program includes Live Cattle, Hydrous Ethanol, Soybean and Oil futures contracts
The B3 Market Maker Program is an important initiative that seeks to guarantee reference prices for listed products and thus stimulate trading liquidity in the products portfolio. The Cash-Settled Live Cattle, Hydrous Ethanol, Corn, Soybean and Light Sweet Crude Oil futures contracts are in their second cycle of Market Maker activity.
Live Cattle
The Cash-Settled Live Cattle futures contract (BGI) is quoted in Brazilian Reals and its underlying is 42 month-old at most male live cattle, with a carcass weight of 16 net arrobas or more. Itaú Unibanco S.A. and JBS S.A. are the institutions that have been selected for Market Maker activity in the contract. From May to December of 2017, the Market Makers will trade in the May and October of 2018 contract months. During these periods, the selected institution must be present for 80% of the day in trading sessions, broadening price formation. The minimum quantity for orders is 25 contracts, respecting a maximum bid-ask spread of 1.5%.
Hydrous Ethanol
The Cash-Settled Hydrous Ethanol Futures Contract (ETH) is quoted in Brazilian Reals per cubic meter, its underlying is hydrous fuel ethanol, in accordance with the technical specifications defined by the National Petroleum Agency (ANP), and the contract size is 30 (thirty) cubic meters (30,000 liters). Usina Alta Mogiana S/A is the institution that has been selected for activity in the contract.
The minimum quantity for orders is 25 contracts and the Market Maker will be active in the first, second and third contract months, respecting a maximum bid-ask spread of BRL 50.00. Up until December 2017, the Market Maker must be present for two hours of the last four hours of trading sessions, enabling more price formation in this market.
Light Sweet Crude Oil
The Cash-Settled Mini Crude Oil Futures Contract at the Price of the CME Group Light Sweet Crude Oil (WTI) Futures Contract has as its underlying the settlement price of CME Group’s NYMEX Light Sweet Crude Oil (WTI) futures contract, traded at the New York Mercantile Exchange (Nymex), which is also owned by CME Group. The size of each futures contract is equivalent to 10% of the original contract, representing 100 barrels of crude oil and quoted in United States Dollars. Itaú Unibanco S.A. and Banco Modal S.A. are the institutions that have been selected as Market Makers in the contract until December 2017. During this period they must have an 80% daily presence in trading of the first and second contract months, for a minimum quantity of 50 contracts, respecting a maximum bid-ask spread of 0.80%.
Soybean
The Cash-Settled Soybean Futures Contract at the Price of the CME Group Mini-Sized Soybean Futures Contract (SJC) has as its underlying the settlement price of the Mini-Sized Soybean Futures Contract traded at the CME Group’s Chicago Board of Trade (CBOT). The price quotations for this contract are in United States Dollars per 60-net kilogram bag, at the equivalent of 450 bags or 27 metric tons. Itaú Unibanco S.A. and Banco Modal S.A. are the institutions that have been selected as Market Makers in the contract until December 2017. During this period they must have an 80% daily presence in trading of the first and second contract months, for a minimum quantity of 50 contracts, respecting a maximum bid-ask spread of USD 0.20.
Light Sweet Crude Oil (WTI) and Soybean (SJC) futures contracts are listed on B3 through a cross-listing agreement with CME Group and reference the settlement prices of the original contracts traded in the United States.
