Small Cap Future | B3

Small Cap Future

  • The Small Cap Index (SMLL B3) aims to be the indicator of the average performance of the prices of the assets in a portfolio composed of companies with smaller market capitalization. It consists of shares and units exclusively from companies listed on B3, excluding BDRs and assets of companies undergoing judicial or extrajudicial recovery, under special temporary administration, intervention, or assets traded under any other special listing situation.

    The Small Cap Index (SMLL B3) is composed of shares selected based on liquidity criteria and weighted by the market value of the free float, thus reflecting the variations of the assets throughout its validity. The index was constructed to be used as a performance benchmark for the market, investors, and portfolio managers.

    The Small Cap Futures Contract allows the market to trade future expectations of the stock market without the need to purchase the entire basket of stocks that make up the index and be exposed to the indicator's variation.

  • UnderlyingSmall Cap Index
    TickerSML
    Contract sizeSmall Cap futures contract multiplied by the index point value in Brazilian Reals, each point BRL 10.00
    QuotationIndex Points
    Tick size0.1 index points
    Round-lot1 contract
    Last trading dayClosest Wednesday to the 15th calendar day of the contract month.
    Expiration dateClosest Wednesday to the 15th calendar day of the contract month. If this day is a holiday or a non-trading day at B3, the last trading day will be on the following business day.
    Contract monthsEven months
    Settlement on expirationCash settlement
    • Instrument for hedging strategy against exposure to equities.
    • Possibility to replicate the behavior of the index without the financial outlay and transaction costs of the spot market.
    • By using the correlation factor of the stocks with the futures index itself, it is possible to carry out hedging operations against the volatility of the stock market, even in different quantities from the composition of the index.
    • Through a single operation, the investor can maintain highly liquid positions without trading individual stocks in the spot market.
    • Allows for arbitrage between the spot market with stocks or ETFs.