About B3 Exchange
The B3 Exchange, formerly known as BM&FBOVESPA, is the largest stock exchange in Latin America and the second largest derivatives market in the world. It is located in São Paulo, Brazil, and offers a wide range of products for traders to invest in, including stocks, futures, options, and ETFs.
The B3 Exchange is home to the Ibovespa Index, which is the benchmark index for the Brazilian stock market. The Ibovespa is made up of the 50 most traded stocks on the B3 Exchange. Other popular products on the B3 Exchange include IFIX Futures, S&P 500 Index Futures, and Stock Futures. Click to find out more on the Futures Contracts that are under the Brazil Stock Exchange B3.
The B3 Exchange is an important part of the Brazilian economy and plays a vital role in the development of the Brazilian capital market. It is also a popular destination for foreign investors looking to invest in the Brazilian economy.
Since August 2023, traders are able to access the B3 Brazil Stock Exchange through Orient Futures Singapore. This makes Orient Futures Singapore the first brokerage company in Asia to offer access to the B3 Stock Exchange.
This article aims to inform traders about the 5 Things to Know about the B3 Exchange IFIX Futures contract.
1. What is IFIX Futures?
Launched in 3rd September 2012, the B3 Real Estate Investment Fund Index (IFIX) measures the performance of a theoretical asset portfolio, which is made up of Real Estate Investment Fund (FII) shares, which are mandatory in B3's stock and over-the-counter (OTC) markets.
IFIX is a total return index, which measures components real estate funds’ price movements, in addition to assuming that distributions are reinvested into the index.
The purpose of the IFIX is to be an indicator of the average performance of the prices of real estate funds traded on B3's stock exchange and organized over-the-counter markets.
The IFIX Futures allow participants to trade future expectations of the real estate fund’s market, without the need to buy the entire basked of shares that composes the index. Consequently, exposing its portfolio to the indicator.
According to Kaggle, although IFIX debuted in 2012, but the index's profitability calculation incorporates values since 30th December 2010, providing a greater comparative horizon for investors in the variable income capital market.
Investors can use the IFIX index to gain exposure to the Brazilian real estate market, using it to hedge against risk in the Brazilian real estate market. For example, an investor who owns Brazilian real estate stocks can also buy IFIX futures contracts. This way, if the Brazilian real estate market declines, the investor will make money on their IFIX futures contracts. This will offset the losses that the investor experiences in their real estate stocks.
2. IFIX Futures Contract Specifications
The B3 IFIX Futures Contract has the following specifications:
The Futures Contract has a tick size of 0.10 Index Points per contract.
Contract months are all the even months.
The last trading day of the contract month is the third Friday in the contract month.
B3 Exchange Trading Hours are every exchange business day, at these trading hours:
9:00am – 6:00pm (Brasilia Standard Time)
B3 Exchange IFIX Futures symbol: XFI
3. Brazil Real Estate Industry
The IFIX is a basket of stocks of Brazilian companies that own or invest in real estate. This includes companies that own office buildings, shopping malls, apartments, and other types of real estate.
When the Brazilian real estate market is doing well, the IFIX index goes up. This is because the companies in the index are making more money. The IFIX index tracks the performance of Brazilian real estate companies, so it goes up when the real estate market is doing well and goes down when it's doing poorly.
According to Statista, the Brazil Real Estate market is projected to reach €7.36tn in 2024, with Residential Real Estate dominating the market with a projected market volume of €5.80tn. The value is expected to show an annual growth rate (CAGR 2024-2028) of 1.40%, resulting in a market volume of €7.78tn by 2028. In global comparison, the most Real Estate value will be generated in China at €124.10tn in 2024.
4. IFIX Futures Price
Figure 1. IFIX USD Price from Jun 2023 to May 2024 from Investing.com
According to Investing.com, the IFIX:USD was priced at 3391.26 on 20 May 2024. This records a decrease from the previous month’s price of 3384.12 from the same period of the previous month.
5. Orient Futures Singapore is the First Brokerage Firm in Asia to Gain Access to B3 Exchange IFIX Futures
The B3 Exchange ranked among the world's top five exchanges in total volume of derivatives contracts traded, according to the Futures Industry Association (FIA). It outperformed leading exchanges such as Nasdaq, CME Group (Chicago Mercantile Exchange), and Intercontinental Exchange (ICE), which owns the New York Stock Exchange (NYSE).
As the second largest derivatives market in the world, the B3 Exchange offers investors vast opportunities. In line with our mission to provide the best trading experience for our clients, Orient Futures Singapore became the first brokerage in Asia to gain access to the B3 Exchange in August 2023. This allows traders to now access IFIX Futures and other B3 Exchange products through Orient Futures International Singapore. Find out more here.
Start Trading with Orient Futures Singapore
Being an Overseas Intermediary of Shanghai International Energy Exchange (INE), Dalian Commodity Exchange (DCE), and Zhengzhou Commodity Exchange (ZCE), when foreign clients participate in internationalised futures contracts in these Chinese markets with us, they have direct access to trading, clearing, and settlement. Our parent company, Shanghai Orient Futures, is the largest broker in terms of aggregated volume across the five regulated exchanges in China.
Orient Futures Singapore also currently holds memberships at the Singapore Exchange (SGX), Asia Pacific Exchange (APEX), and ICE Futures Singapore (ICE SG). Starting August 2023, corporate clients can also gain access to the B3 Exchange through us, opening additional trading avenues.
Expect streamlined processes and an easy-to-use interface designed for minimal latency, accompanied by our team's round-the-clock availability on trading days to provide assistance for all your trading needs.
