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BM&FBOVESPA hereby announces the institutions registered for Market Maker activity in the DI x IPCA Spread Futures Contract (DAP). Itaú Unibanco S.A. and Banco Santander (Brazil) S.A. are the selected institutions and will have mandatory presence in this market as of next Monday (May 02). The underlying asset traded in this agreement is the real interest rate obtained by the difference between the Average One-Day Interbank Deposit Rate (DI) and the Extended Consumer Price Index (IPCA), expressed as an annual percentage (252 days). The contract is traded from 9:00 a.m. to 6:00 p.m., in round lots of five contracts. The contract months automatically available for trading are all Mays and Augusts that coincide with the maturity of National Treasury Notes - Series B (NTN-B) principal, up until 7 years.
The selected Market Makers will daily place buy and sell orders for at least 60 contracts expiring in August 2018, May 2019 and May 2023, respecting the maximum spread of 15 basis points for 80% of the window time between 2:30 p.m to 5:00 p.m. The program will be effective until November 2016.
Hedge in government securities and protection against real interest rate fluctuations
With onscreen trading and transparent price formation, the DI x IPCA Spread Futures contract is a risk management tool aimed at market players such as financial institutions, asset managers, foundations and foreign investors, among others. It enables the creation of hedging strategies or synthesizing securities indexed to the IPCA (such as NTN-Bs) and protection against fluctuations in the real interest rate in the Brazilian economy.
The Market Maker Program
The BM&FBOVESPA Market Maker Program is an important initiative that aims to ensure price references for products listed on the Exchange and thus stimulate trading liquidity for the products portfolios.
