BM&FBOVESPA hereby announces the institution registered for Market Maker activity for Cash-Settled Hydrous Ethanol Futures Contracts. Usina Alta Mogiana S/A is the selected institution and its mandatory activity in this market will begin next Monday (March 14). 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).
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 spread of BRL 30, defined from the difference between bids and asks. Up until September 2016, the Market Maker must be present for two hours of the last four hours of trading sessions, enabling more price formation in the Hydrous Ethanol Futures market.
Program also includes Cash-Settled Corn, Crude Oil, Crystal Sugar, Live Cattle and Soybean 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 trading liquidity in the products’ portfolio. Commodity derivatives that already have a Market Maker are the Cash-Settled Corn (CCM), Cash-Settled Crystal Sugar (ACF), Cash-Settled Live Cattle (BGI), Cash-Settled Soybean (SJC) and Cash-Settled Light Sweet Crude Oil (WTI) Futures Contracts. The latter two are listed on the Exchange through a cross-listing agreement with CME Group and reference the settlement prices of the original contracts traded in the United States. See below the contract specifications and the activity’s parameters in each product:
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. Until April 2016 the Market Maker will be active in the January 2017 and March 2017 contract months. The second period of Market Maker activity runs from May to November 2016, and encompasses the May to September 2017 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 spread of 2%, defined from the difference between bids and asks. Itaú Unibanco S.A. is the selected institution as Market Maker in the Corn Futures market.
Crystal Sugar
The Cash-Settled Crystal Sugar Futures Contract (ACF) is quoted in Brazilian Reals per 50-net kilogram bag and its underlying is special crystal sugar, with a minimum of 99.7 degrees of polarization, maximum 0.08% moisture, color maximum 150 ICUMSA, maximum 0.07% ash. The minimum quantity for orders is 30 contracts and the Market Maker will be active in the first and second contract months, respecting a maximum spread of 3%, defined from the difference between bids and asks. Up until November 2016 the selected institution must be present for two hours of the last four hours of the day during trading sessions, enabling price formation. Itaú Unibanco S.A. is the selected institution as Market Maker in the Crystal Sugar Futures market.
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. Up until April 2016 the Market Maker will be active in the November 2016, December 2016 and January 2017 contract months. The second period for Market Maker activity will be from May to November 2016 and encompasses the contract months of May and October 2017. 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, representing a maximum spread of 1.5%, defined from the difference between bids and asks. Itaú Unibanco S.A. and JBS S.A. are the selected institutions as Market Maker in the Live Cattle Futures market.
Mini Crude Oil Futures
The Mini Crude Oil Futures Contract (WTI) 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 minimum quantity for orders is 50 contracts and the Market Maker will be active in the first and second contract months, respecting a maximum spread of 0.8%, defined from the difference between bids and asks. Itaú Unibanco S.A. is the selected institution as Market Maker in the Mini Crude Oil Futures market.
Soybean
The Cash-Settled Soybean Futures Contract (SJC) has as its underlying the settlement price of the Mini-Sized Soybean Futures Contract traded on the Chicago Board of Trade (CBOT), which is owned by CME Group. 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 minimum quantity for orders is 50 contracts and the Market Maker will be active in the first and second contract months, respecting a maximum spread of USD 0.20, defined from the difference between bids and asks. Itaú Unibanco S.A. is the selected institution as Market Maker in the Cash-Settled Soybean Futures Contract.
