BRL/USD Futures and Options

Brazilian Real/U.S. Dollar Futures

Now one of the largest off shore BRL liquidity pools, and with YTD ADV up 9% YoY

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. Like many emerging markets Brazil is a primarily export driven economy. Brazil’s soybean market has been a beneficiary of the US-China trade war. But, a challenging global outlook due to continued trade tensions has seen Brazil’s 2019 GDP forecast cut to 0.9% from 1.8%. However, beyond 2019 2.0% growth is expected in 2020 while external factors such as continued US rate cuts could see the real benefit.

Key Stats

  • Record ADV in August 2019 of 11,997 contracts
  • Q3 2019 average open interest of 58,508
  • Q3 2019 average daily volume of 9,037 up 25% YoY

Key Features

  • CME BRL futures are the largest listed derivatives off-shore liquidity pool.
  • The BRL/USD futures contract is a liquid tool to manage currency exposure, with a number of on-shore and off-shore liquidity providers.

Key capital efficiencies and margin offsets

  • 35% savings with South African Rand (ZAR/USD)
  • 30% savings with Australian Dollar (AUD/USD) and Mexican Peso (MXN/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

Available Now on the Platform You Want

Futures

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

Options

Globex: BR Bloomberg: BRmyC Curncy

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.


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


More in Emerging Markets

    • USD/CNH
    • USD/CNH CNH contracts are now cash-settled and up 489.9% YOY
    • INR/USD
    • INR/USD Up 129.9% YOY, with liquid across timezones
    • MXN/USD
    • MXN/USD Over $1.7B traded daily, available on FX Link
    • ZAR/USD
    • ZAR/USD Largest off-shore liquidity pool, margin offsets up to 35%
    • RUB/USD
    • RUB/USD Largest off-shore liquidity pool, up 9.3% YTD