.jpg)
BM&FBOVESPA hereby announces a new Market Maker for Soybean (SJC) and Light Sweet Crude Oil (WTI) futures contracts. Banco Modal S.A. has been chosen as the new institution to carry out this daily activity mandatory in both contracts, as of tomorrow (December 21). 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. The period for Market Maker activity runs until December 2017, with 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.
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. The period for Market Maker activity runs until December 2017, with 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%.
Itaú Unibanco S.A. is also Market Maker in the Soybean (SJC) and Light Sweet Crude Oil (WTI) futures contracts. Both of these futures contracts are listed on the BM&FBOVESPA through a cross-listing agreement with CME Group and reference the settlement prices of the original contracts traded in the United States.
Market Maker Program also includes Corn and Live Cattle futures contracts
The BM&FBOVESPA Market Maker Program is an important initiative that seeks to guarantee reference prices for the products listed on the Exchange and thus stimulate liquidity in the products portfolio. In a second cycle of market maker activity, the Program includes the Cash-Settled Corn futures contract, Cash-Settled Soybean futures contract, Cash-Settled Live Cattle futures contract and Mini Crude Oil futures contract.
Corn
The Cash-Settled Corn Futures Contract (CCM) 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. Itaú Unibanco S.A. is the institution that has been selected as Market Maker in this contract and it will be active up until April 2017 in the January 2018 and March 2018 contract months. The second period of Market Maker activity runs from May to November 2017, and encompasses 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 for orders is 25 contracts, respecting a maximum bid-ask spread of 2%.
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 as Market Makers in the contract. The Market Makers will be active in the November 2017, December 2017 and January 2018 contract months up until April 2017. The second period for Market Maker activity will be from May to November 2017 and encompasses the contract months of May and October 2018. During these periods, the selected institution must be present for 80% of the day in trading sessions, broadening price formation in the Live Cattle futures market. The minimum quantity for orders is 25 contracts, representing a maximum bid-ask spread of 1.5%.
