BRL/USD Futures and Options

Brazilian Real/U.S. Dollar futures

BRL Futures June ADV of 10,747; up 26% vs May 2020

Key macro facts

Brazil is the largest economy in Latin America and the 9th largest in the world with a nominal GDP of $1.9 trillion in 2019.  Still struggling to shrug off a deep economic recession from four years ago, Brazil is now a global hotspot for Covid-19.  Economists forecast that Brazil’s economy will shrink eight to ten percent this year.  Analysts say unemployment could rise to almost 19% later this year if the pandemic creates further economic hardships.  Economists expect Brazil’s inflation rate will come in at 2.4% for the year.  The Central Bank of Brazil has slashed its benchmark Selic interest rate to 3% – a historic low – and is expected to cut by a further 75 basis points this month.  In March, the central bank launched a $300 billion financial liquidity package – the equivalent to 16.7% of Brazil’s gross domestic product – to offset the broad economic shutdown caused by the coronavirus pandemic.

Key stats

  • BRL Futures YTD ADV of 10,460, up 53% vs 2019
  • June 2020 ADV in notional of $207M up 34% vs May 2020
  • Brazilian Real YTD 2020 Notional ADV of $216M; up 22% vs YTD 2019
  • BRL Futures Avg OI YTD June at 37,236 contracts; up 25% YoY

Key features

  • CME BRL futures are the largest listed derivatives off-shore liquidity pool.
  • CME BRL Futures allow Global participants to effectively manage currency exposure to the Real, with a number of on-shore and off-shore liquidity providers.

Key capital efficiencies and potential margin offsets

  • 50% savings with South African Rand (ZAR/USD) and Mexican Peso (MXN/USD)
  • 30% savings with Australian Dollar (AUD/USD)
  • 25% savings with Indian Rupee (INR/USD)
  • 20% savings with Russian Ruble (RUB/USD)

Be Part of the Trend and Trade Cash-Settled Brazilian Real Futures and CME Group

Standard futures

CME Globex: 6L Bloomberg: BRA Curncy Reuters: 0#BRSS:

Block minimum threshold: 50

Available in Monthlies and Quarterlies  

Powered by CME Globex

Bringing together market participants and their liquidity, from pension funds to banks, from hedge funds to corporates, from 150+ countries nearly 24 hours a day, ready for market-impacting events

Transact with Flexibility

Choose a Block or an EFRP – where you can still privately negotiate your trades, but submit them directly into our clearing systems to free up credit lines and mitigate bilateral exposure – whether you are trading in Brazil or anywhere else in the world.

Reduce Risk and Manage Uncleared Margin Rule Changes

Through position-netting and by utilizing the capital and margin efficiencies of cleared and listed FX:

55 Futures, 24 Options, 26 CSFs, 12 NDFs and 7 CSOs

Get Connected To The World’s Largest Regulated FX Marketplace

$100b of daily FX volume and the firm liquidity you need to manage FX risk – from Real to Ruble, Peso to Pound.

Brazilian Real futures at CME Group

Available now on the platform you want


BRL/USD Contract Specifications

 

Futures Options

Contract Size

100,000 Brazilian reais

One futures contract for 100,000 Brazilian  reais

Contract Month Listings

Consecutive contract month listings (Jan., Feb., Mar., Apr., May, etc.) for a total maturity range out 10 years

Twelve  consecutive contract months, 4 weekly

Daily Settlement Procedure

To reduce basis risk between the CME Brazilian real/U.S. dollar futures & options and the BM&FBOVESPA U.S. dollar/Brazilian real futures & options contracts, CME Settlements Team will determine the daily settlement prices at 4:00 p.m. Sao Paulo time each day.1

Settlement Type

Cash-settled

Option on cash-settled futures  contract

Position Limits

24,000 futures-equivalent contracts in a single month; 40,000 futures-equivalent contracts in all months  combined**

Ticker Symbol

CME Globex Electronic Markets: 6L Open  Outcry: BR

AON Code: LZ

Monthly options: BR Weekly options: 1R-5R AON Code: LZK

Minimum Price Fluctuation (Tick)

$.00005 per Brazilian real increments  ($5.00/contract)

Trading Hours CME Globex (ETH) Sundays: 5:00 p.m. – 4:00 p.m. Central Time (CT) next day. Monday – Friday: 5:00 p.m. – 4:00p.m. CT the next day, except on Friday - closes at 4:00 p.m. and reopens Sunday at 5:00 p.m. CT.
CME ClearPort Sunday – Friday 6:00 p.m. – 5:15 p.m. (5:00 p.m. – 4:15 p.m. Chicago Time/CT) with a 45-minute break each day beginning at 5:15 p.m. (4:15 p.m. CT)
Open Outcry (RTH) Monday – Friday: 7:20 a.m. – 2:00 p.m. CT

Last Trade Date/Time

On the last business day of the month, at 9:15 a.m. CT, immediately  preceding  the  contract  month,  on  which the Central Bank of Brazil is scheduled to publish its final end-of-month (EOM), “Commercial exchange rate for Brazilian reais per U.S. dollar for cash delivery” (PTAX rate).

Monthly options: On the last business day of the month, at 9:15 a.m. CT, immediately preceding the contract month, on which the Central Bank of Brazil is scheduled to publish its final end-of-month (EOM),“Commercial exchange rate for Brazilian reais per U.S. dollar for cash delivery” (PTAX rate).

Weekly options: Close of trading is on the four nearest Fridays that are not also terminations for monthly options. Same time as determination of daily settlement prices.1

Block Trade Eligibility

Yes. For more information, visit  cmegroup.com/blocks

Block Trade Minimum

50 contracts for both futures and  options

EFRP Eligibility

Yes. For more information, visit cmegroup.com/efp


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