EDS Tick Size Change for Short Leg DI1 Contracts with Maturity of up to 3 Months

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New tick size ensures greater accuracy, reduces operational errors and improves the use of the Implied functionality

B3 will change the tick size of EDS (Exchange Defined Strategies) for short leg DI1 contracts with maturity of up to three months. The tick size, currently set at 0.005%, will be reduced to 0.001%, in line with the tick size of DI futures contracts. This change aims to reduce the occurrence of operational errors during trading.

Furthermore, the change in tick size will facilitate the use of the Implied functionality for strategies with maturity of up to three months. Implied automatically connects the order books of outright contracts and structured strategies, aimed at increasing market liquidity.

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Listed

Completed

Interest rate and currencies

Product benefits

Operational efficiency

The new tick size rule is in line with DI Futures (DI1), thus optimizing transactions and increasing trading speed.

Risk reduction

Less chance of operational errors, providing greater trading safety.

Easy to trade strategies

The new layout allows integration with the Implied functionality, which automatically connects order books.

Learn more

Reducing the tick size leads to trades with fewer errors and increases liquidity, while facilitating the use of the Implied functionality for maturities of up to three months.

Implied is a functionality that automatically connects outright order books (individual contracts) and structured strategies. The Implied functionality is designed to increase market liquidity and efficiency. Learn more.

EDS are structured transactions that combine two different maturities of a contract for those wishing to trade strategies based on the country's interest rate curve. EDS allow trading DV01 or neutral PU strategies with fee and operational efficiency and transparency. Learn more.