Brazil's B3 Exchange Appoints Infinox As Market Maker For S&P 500 Micro Futures

December 7, 2020 - UK-based CFD provider Infinox has followed up on its rollout of forex futures trading in South America by offering Brazilian investors access to S&P 500 Micro futures.

The global trading platform has been selected by the Brasil Bolsa Balcão stock exchange – known as the B3 – as a market maker for the hugely popular equity futures contracts, which allow investors affordable exposure to the S&P 500 index.

The appointment means that Brazilian investors in the B3 - the world’s third largest derivatives exchange by volume in 2019 - can now trade Micro futures contracts that track the S&P 500 index of large-cap US companies in their home market, and without needing to send funds out of the country.

The simplicity and liquidity of S&P 500 futures means they have long been a staple for both professional and amateur traders. But the introduction in 2018 of Micro futures, which are 20 times smaller than a standard contract, transformed the trading landscape by offering sophisticated retail investors affordable, highly leveraged exposure to one of the world’s best known equity indices.

The surging popularity of S&P 500 Micro futures saw the total volume traded over the past three months hit $5.61bn, a 230% increase on the previous quarter.

Infinox’s selection as a market maker by the São Paulo-based B3 – Brazil’s second oldest exchange, with a market cap of $715bn – unlocks S&P 500 Micro futures for a market already showing strong investor demand.

Robert Berkeley, CEO of Infinox, said, “The scale and potential of Brazil’s untapped market is truly exciting. Brazilian investors already trade over $70bn per day on just two futures products, so the arrival of S&P 500 Micro futures is a game-changer.

“Earlier this year Infinox took the strategic decision to use our high levels of liquidity to diversify into market making for established and successful exchanges like the B3. We blazed a trail by enabling Brazilian investors to trade forex futures, and we’re now proud to offer them access to the S&P 500, one of the world’s best-known and most highly traded equity indices.

“We have more than a decade of experience in our home market, and now have a presence in 15 countries. We pride ourselves on providing competitive trading conditions and premium client service, and look forward to unlocking US equity futures trading to a new wave of ambitious Brazilian investors.”