The Brazilian Mercantile & Futures Exchange (BM&F) announced on December 16th the launching of two new products indexed to IPCA – Índice Nacional de Preços ao Consumidor Amplo (Extended Consumer Price Index): IPCA Futures Contract and the ID x IPCA Spread Futures Contract. According to BM&F’s Chairman, Mr. Manoel Felix Cintra Neto, the new contracts begin trading February of 2005. During the launching’s press conference, Mr. Cintra Neto stated that he expects that these new contracts will be well accepted by the market. “Around 90% of contracts launched by BM&F are widely accepted by the market, due to the fact that they are largely discussed with the market. This is another important financial instrument for equity protection”, explained Mr. Cintra Neto.
Mr. Joaquim Levy, secretary of National Treasury, was present at the event and praised BM&F’s agility and quality. According to Mr. Levy, the new contracts are part of a government strategy of transforming public debt, with the improvement of the macroeconomic environment. “The objective of these products is to complement securities indexed to IPCA”, explained Mr. Levy.