The instrument is negotiated for contracts of US$ 1,000 with expiration three business days before the end of the month.
Bevsa screens witnessed the first DFG operation.
Photo: Bevsa
The Electronic Stock Exchange of Uruguay SA (Bevsa) registered the first operation of Dollar Future Guaranteed (DFG) in the month of May, an instrument that is negotiated for $1,000 contracts with maturities three business days before the end of the month.
In the fifth month of the year, an operation was carried out on the Bevsa screens for about 100 contracts of 1,000 dollars from DFG, thus totaling an amount of 100,000 dollars and being the first of its kind that has Bevsa as a central counterparty.
In this report, it is explained that the DFG is a American dollar term with a standardized contract, with operating hours ranging from 10:00 a.m. to 4:00 p.m. on business days, according to the latest monthly bulletin prepared by Bevsa for the month of May.
What does this type of contract imply for the parties involved?
Through the operations of this type of contract, the parties undertake to buy (or sell) the agreed underlying product on the expiration dates, as well as to settle by compensation for daily difference of these contracts.
The pricing of contracts is carried out through the spread of exchange rates spot at the time of finalizing the offer, so it is necessary that there be points when closing the DFG.
The agents that are authorized to enter offers in said round are the institutions that, already being authorized to operate in the Securities Market, have adhered to the Futures Market Operations Manual and the Guarantee Trust Contract, and that have also deposited the required guarantees (according to communication 476/19) in the Guarantee Trust in the Central Bank of Uruguay (BCU).
Source: Ambito
