The Ibovespa Index, also known as the Bovespa Index, is the benchmark index of around 92 stocks (updated as of Oct 4 2023). Since 2014, assessments that constitute the index was revised based on several criteria such as the weighing function, the tradability ratio, “active trading” requirements, and various other factors.
With the Brazilian exchange as an emerging market, global investors have increasingly paid attention to products such as Bovespa Index (Ibov) for their growth potential.
Additionally, the Ibovespa is reassessed every four months and it accounts for up to 80% of the number of trades and financial volume of the B3 capital markets. It is also a product offered exclusively by B3 in the form of:
- Ibovespa Futures Contract
- Mini Ibovespa Futures Contract,
- Call and Put Options on Ibovespa,
- Structured Ibovespa Rollover Transaction,
- Structured Mini Ibovespa Rollover Transaction,
As a member of the B3 Onboarding Incentive Program, Orient Futures Singapore is now eligible to offer these products, additionally, more information about the exchange can also be found in this article.
To explain more about the Ibovespa Index futures, this post will cover the contract specifications, product information, and market news.
Ibovespa Futures Contract Specifications
Ibovespa Futures Contract (IBOV)/ Mini Ibovespa Futures Contract(WINQ19)
The contract size is the Ibovespa futures contract multiplied by the index point value in Brazilian Reals, with each point being BRL1.00.
Contract specifications: Ibovespa Futures
Mini Ibovespa Futures Contract
The Mini Ibovespa Futures Contract follows these specifications:
The contract size is the amount of Ibovespa points multiplied by BRL0.20, with a minimum price fluctuation of 5 index points.
Trading Day
9 am – 6 pm (T-session, Brazilian Time)
Contract specifications: Mini-Ibovespa Futures
The Brazil Stock Exchange does have extended hours of trading. There is no Pre-Trading Session. The Post-Trading Session is from 5:30 pm to 6:00 pm.
Call and Put Options On Ibovespa (IBOV)
Call and put options Ibovespa follow similar specifications with the contract size as the Ibovespa multiplied by the value of each point in BRL.
Trading Day
9 am – 6 pm (T-session, Brazilian Time)
Contract Specifications: Call and Put Options on Ibovespa
Structured Mini Bovespa Rollover Transaction/Structured Bovespa Rollover Transaction
Unlike the above futures contracts, the Structured Ibovespa Rollover Transaction is a mechanism that allows for the simultaneous trading of two maturities of the Ibovespa Futures Contract.
The contract reflects itself in the IR1 transaction (ticker), in which, a transaction will be automatically transformed into two other transactions, one for the first contract month (short leg) on the opposite side, and another transaction for the second contact month (long leg) on the same side as that of IR1.
Contract Specifications: Structure Ibovespa Rollover Transaction
Contract Specifications: Structured Mini Ibovespa Rollover Transaction
Market News
According to Trading Economics, Brazil’s Bovespa finished 1.5% lower at the 113,300 level on 3rd October 2023. This extended last session’s losses, hitting the lowest level since June this year.
To trade products such as the Ibovespa from B3, several platforms offer dedicated connectivity such as trading platform, CQG. In August 2021, CQG added the B3 market into its global network of exchanges, hence, clients around the world can obtain trading and market data access to the Brazilian markets for their listed commodities, interest rates treasury, and equities products.
Based on the index performance of the exchange by statista, the Brazil Bovespa stock index from 1993 has also indicated a general increase, with a peak of approximately 120,000 in 2020 while the year-end value of the Bovespa index amounted to 104,822 points in 2021.
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.
We provide bespoke services to our professional clients, tailored to their corporate and individual needs. Our team will be there for you 24 hours on trading days to provide a one-stop portal for all your trades, with simple processes and an intuitive user interface that has low or near-to-zero latency.
