Investment Bank in Brazil
Futures & Options
J.P. Morgan is pleased to offer clients clearing and self execution on the BM&F Bovespa S.A. (BM&F Bovespa) via J.P. Morgan Corretora de Cambio e Valores Miobiliarios (JPMCCVM), our legal entity.
BM&F Bovespa is one of the largest exchange groups globally.
J.P. Morgan offers clients intra-day and after-hours electronic trading on BM&F Bovespa. The firm is also one of the first brokers to offer direct market access (DMA), to clients.
For additional information on the exchange, visit BM&F Bovespa.
What is J.P. Morgan’s membership status on the exchange?
JPMCCVM is the J.P. Morgan legal entity maintaining the clearing and execution membership on the exchange and the J.P. Morgan entity for all client and legal documentation.
What services are being offered?
Access to the exchange is offered on an execution-only, clearing-only or full-service basis. Give-ups are permitted on the exchange.
Access to the exchange is available on a DMA basis for execution via MORCOM eXtraTrade. FIX Orders can also be accepted through J.P. Morgan’s Order Management System (OMS) and will be confirmed back electronically. Clients without access to MORCOM eXtraTrade can voice execute through J.P. Morgan’s sales desks.
Are there any specific funding or margining requirements?
All initial and variation margins must be settled in BRL. J.P. Morgan will handle all currency conversions locally and convert back to USD. Initial margin may be covered with Brazilian Government Bonds, CD’s, stocks (haircuts applicable) and cash. The F&O Sales desk can facilitate the purchase of the Government bonds and CD’s.
J.P. Morgan expects that it will usually call most clients for initial margin based on the exchange’s own minimums for the front month requirement, plus a requirement to satisfy default risk, which is calculated by J.P. Morgan’s Risk Management team.
Which contracts are offered?
J.P. Morgan has trading capabilities on all contracts offered by the BM&F Bovespa. All contracts are available on a full-service basis.
For additional information on product specifications and trading hours for individual contracts, visit BM&F Bovespa.
Should you have an interest in a contract not currently listed as part of J.P. Morgan’s offering please inform your J.P. Morgan contact. We are more than happy to investigate any individual demands.
Will additional documentation be required?
Prior to transacting on this exchange, all clients will be required to complete an agreement with JPMCCVM. Offshore clients who are already documented with J.P. Morgan Securities plc (JPMS plc) or J.P. Morgan Securities LLC (JPMS) will be required to complete additional documentation with JPMCCVM.
Thereafter, offshore client transactions will flow through an omnibus account in Brazil maintained with JPMCCVM by JPMS. Clients will also need to complete a registration form with Banco ITAU (the local omnibus custody and legal representative).