Options on U.S. Dollar Bonds

Liquidity in Calls and Puts on AY24D, the most liquid bond in the market

Maturity:
End of November

BYMA ratifies its commitment to provide liquidity in options on US dollar-denominated government securities, whose trading and settlement will be carried out in US dollars. Options on the AY24D bond, both calls and puts, begin to trade on a sustained basis.Product FeaturesTrading is carried out in the PPT (Price Time Priority) segment where BYMA, in its capacity as Clearing House and Central Counterparty, guarantees settlement on the agreed date and conditions. In this way, BYMA extends its derivatives market, which until now consisted of trading options on shares and fixed-income securities in pesos.Among the advantages of trading options on government securities with settlement, BYMA, in addition to guaranteeing the operations, provides the following strengths:Standardization in the process of carrying out operations and their subsequent processing.Anonymity in the operations carried out.Centralization in the monitoring of risks.Transparency and publicity of prices traded.Minimization of different risks.Main advantages and characteristicsFixed income securities options are a simple and attractive product. They will be traded in the same currency of issue of the underlying asset, eliminating the exchange rate risk. On the other hand, they offer the possibility of hedging portfolio duration risks, covering positions in different points of the Argentine sovereign USD curve, allow a better use of the fixed income securities that the agents already have in their portfolio, from the launching of hedged positions, and help to fix a yield, in dollars, in the event of adverse movements of the exchange rate.BYMA's idea is to start adding species as agents feel they need underlying assets at other points of the sovereign curve.The underlying assets chosen for a first derivatives launch are:ARGENTINE NATION BOND IN DOLLARS 8.75% 2024 (AY24D)ARGENTINE NATION BOND IN DOLLARS 7.875% 2027 (A2E7D)ARGENTINE NATION BOND IN DOLLARS 7.625% 2037 (AA37D)Contract Description UNDERLYING ASSETS: AY24D / A2E7D / AA37DDENOMINATION of SERIES: U24 / U27 / U37 (Ex. U37C107JU) the letter "U" will indicate its negotiation in dollarsLOT SIZE: 1.000 VNPRIME QUOTATION: 100 VNMINIMUM PRICE VARIATION: USD 0.01 OPTION TYPE: AMERICANTRADING PRICE IN USD: (DIRTY) Integers and in fraction of 16ths(Ex: 10707 = 107.4375, where 7/16=0.4375)EXECUTIVE PRICE ADJUSTMENT FOR COUPON PAYMENT: Same day of coupon cutoff of the underlying assetPLACES: Next two consecutive monthly maturities and next even month.MATURITY DATE: Third trading day prior to the end of the monthSETTLEMENT PERIODS: Premiums: 24 hours (T+1), Exercises: 72 hours (T+3)GUARANTEES: According to Circular No. 3562 MARKET FEES: 0.06% of the effective value of the transaction.