Information Derivatives Market BM&FBovespa

Necessary clarifications on the derivatives market, the main products, functioning, implications, and other rules set by BM&FBovespa for the BM&F segment:

Physical Settlement of Agribusiness Commodities Futures Contracts

Information on the BM&F segment market that involves the physical settlement, delivery or reception of commodities underlying Commodities Futures Contracts.

Commodity Withdrawal
The commodities are available for withdrawal on the following dates:

  • Sugar and Alcohol
    From the sixth business day from the date of delivery of the notice of allocation, inclusive;

  • Soybeans
    From the eighth business day from the date of delivery of the notice of allocation, inclusive.

Claims
In the event of a claim, BM&FBovespa assesses the quality of the referenced commodity through a structure of quality supervisors and an external arbitrator.

If there is a difference regarding the product specifications described in the contracts, the buyer-client and the seller-client may agree on a premium or a discount to the liquidation value, registering this agreement with BM&FBovespa.

If there is no agreement and the quality is inferior, the seller shall change the commodity according to the characteristics specified in the contract and within the terms therein. If it is superior and there is no possibility of an agreement, no premium shall be paid.

Delivery Points
For coffee, corn, sugar and cotton contracts, the commodities delivery points for the owner are the depositary establishments accredited and disclosed by BM&FBovespa, located in the state of São Paulo.

For deliveries outside of São Paulo (SP), freight will be charged to calculate the liquidation value.

For alcohol contracts with effective delivery in a location other than Paulínia - SP (price-maker municipality), the freight value, according to the table published by BM&FBovespa, will be deducted from the adjusted traded value of the trading day when determining the financial liquidation value.

Tax Information

  • The tax information regarding cotton commodities includes:

    - the collection of PIS and Cofins taxes, when due, will be the seller´s responsibility.

    - if the seller is a natural person, the PIS and Cofins will be deducted from the liquidation value.

    - in this case, the buyer cannot credit him/herself.

    - if the seller is a farmer, the Funrural tax will be discounted and the buyer shall be responsible for collecting it, sending all corresponding evidence to BM&FBovespa.
  • The tax information regarding coffee commodities includes:

    - commodity delivery shall be effected through its billing by the seller to the buyer.

    - if the effective legislation establishes the applicability of the ICMS tax, its value shall be added to the liquidation value, for billing purposes.

    - ICMS credit lending will not be allowed for coffee deliveries in which the buyer and seller are established in the same state of the country, unless ICMS legislation requires so.

    - if the seller is a farmer, the social security contribution shall be paid by the buyer. The buyer shall send BM&FBovespa proof of this payment.

    - the collection of PIS and Cofins taxes, when due, will be the seller’s responsibility. Their values will be considered included in the negotiation price, and not affect the liquidation value.

  • The tax information regarding soybean commodities includes:

    - soybeans for export only, applying the main and additional obligations under the effective tax system in the state and federal legislations at the moment of its financial liquidation.

    - the liquidation values do not include the taxes related to the operation, as the commodity was purchased for export only, with buyer and seller, each according to the terms defined by the effective tax legislation, being responsible for following the main and additional obligations.