On September 08, 2014, BM&FBOVESPA launched 6/7 Arabica Coffee Derivatives Contracts and authorized Structured 6/7 Arabica Coffee Rollover Transactions (KR1). As of September 09, 2014, there will be trading in Call and Put Options on the 6/7 Arabica Coffee Futures Contract (KFE).
This contract brings the Exchange closer to the producers and cooperatives and introduces trading in a coffee type closer to that transacted on the physical market. The 6/7 Arabica Coffee contract permits settlement by delivery of the commodity. The contract size is 100 60-kilogram bags and contract months are March, May, July, September and December. The price quotation is in United States Dollars per 60-kilogram bag.
The portfolio of coffee products at BM&FBOVESPA includes 4/5 (ICF) and 6/7 (KFE) Arabica coffee futures and options contracts.
The contracts will be traded in the BM&FBOVESPA PUMA Trading System – Derivatives and settled by the BM&FBOVESPA Clearinghouse* (both of which are managed by the Exchange), following the respective operational rules of these as regards trading, market participants, risk exposure limits, collateral and forms of settlement.
