Derivatives Market

Derivatives Products
International and local Context
 International Context

14 15
14
Number of product lines
13
STANDARDIZED 12 12
DERIVATIVES PRODUCT
LINES (15) 10
10
8 9 9 9 9
8
7 7
Futures Options 6
6 6 6 6

BVC Single Stocks 2 2

1

0
BVC Stock Indexes

os ai
s
viv

Ma ña
sia

C
ia

a
ia

ú
n
xt

Me E
Bo er
a
x
o
bu
re

nn ure
re

sp
CM
pó
sc

rg
BV
g

nd

Ind

ne

xD
pa
lay
l.A
Bu han

Ai

Ko

am

bu
Mo

ve
Ja
ila

ro

E
Es
Te

es
Ist
Eu
S

Ta
en

ha
Jo
ETF

BVC ST Interest Rate Volume by product line

100%
90% Options
BVC LT Interest Rate
80%
70%
60%
BVC Currencies 50%
40%
30%
Commodities 20% Futures
10%
0%
Others Jun,03

Jun,05

Jun,13
BVC
Jun,98

Jun,99

Jun,00

Jun,01

Jun,02

Jun,04

Jun,06

Jun,07

Jun,08

Jun,09

Jun,10

Jun,11

Jun,12

Jun,14
(Exotic, Real Estate, CPI)

Source: WFE
Standardized Futures in Colombia
Launching Strategy and Milestones
 Derivatives Market Milestones

OTC trend and

Algotrading*
Market
adjustment 2014

Indexation
2013
Spot market
complement 2012 2016
Options Market
DMA**
2011 Overnight
Index Swap
Single Bond Futures
2010 IBR Futures
Inflation Futures
Stock Index
Futures
2009 Single Stocks
Futures

USD Futures
Bond Basket Futures
2008
The BVC Derivatives Market was launched in 2008
providing a complement for spot markets and offering a
Derivatives Market
Launch
new tool for risk management.

*AlgoTrading: Algorithmic Trading - **DMA: Direct Market Access.

 Local Context: Listed products

Equity Futures Interest Rate Futures Exchange Rate Futures

COLCAP Index Single TES TRM

Preferencial Bancolombia TES 16 TRS

Ecopetrol TES 18

Pacific Rubiales TES 19

Grupo Sura TES 20

Preferencial Grupo Sura TES 22

Nutresa TES 24

Éxito TES 26

ISA TES 28

Preferencial Grupo Aval TES 30

Cementos Argos TES Basket (TES, TEM, TEL)

PF Cementos Argos CPI Futures

Grupo Argos OIS (Overnight Index Swap) OTC Products

OTC derivatives repository

 Listed Futures specifications

FUTURE TES FUTURE TES

Mnemonic identifier TES - TEM - TEL Mnemonic identifier T16 - T18 - T19 - T20 -
T22 - T24 - T26 - T28 – T30
Underlying TES Basket
Underlying Single TES
Contract Size COP 250.000.000
Contract Size COP 250.000.000
2 quarterly contracts
Contract Months 2 quarterly contracts
(H, M, U, Z) and 2 monthly Contract Months
(H, M, U, Z) and 2 monthlyes
Tick Size 0.005 Tick Size 0.005
Settlement method Physical Settlement method Cash

First friday of the First friday of the

Expiration date Expiration date
expiration month expiration month

1 work day before

Last trading day 1 work day before
the expiration date
Trading hours 8:00 a.m (L) - 4:00 p.m (L)
Last trading day
the expiration date
Trading hours 8:00 a.m (L) - 4:00 p.m (L)

Total Margin on Position* 0,5% - 8% based on the

Total Margin on Position* S=2%; M=3,5%; L=5% modified duration

(L): Colombia time.

(NY): New York time.
* Subject to change by CCP
 Listed Futures Specification

FUTURE Dollar / USD FX Index Futures Stock

ECO-PFB-PRE-PFG-EXI-NUT-
Mnemonic Identifier TRM - TRS COL
GRA-ISA-PFA-CEM-GRU-PCE

Underlying TRM COLCAP COLCAP index stocks

TRM USD 50.000�

Contract Size COP 25.000 by index 1.000 stock
TRS USD 5.000

H, M , U, Z (4)
Contract Months H, M , U, Z (4) H, M , U, Z (4)
and 2 monthly contracts

PFB-PRE-PFG-EXI-NUT-GRA-ISA-GRU = 5
Tick Size 0.1 0.5
ECO-PFA-CEM-PCE = 1

Phisical (ECO, PFB, PRE, GRU)�

Settlement method Cash Cash
Cash (todos los demás contratos) 

Physical: the fourth wednesday

Second wednesday Third friday of the of the expiration month
Expiration date
of the expiration month expiration month Cash: Third friday of
expiration month

Physical: 3 days before

Last day of trading Expiration date Expiration date expiration date
Cash: expiration date

Trading hours 8:00 a.m (L) - 4:30 p.m (L) 8:00 a.m. (L) - 4:00 p.m (NY) 8:00 a.m. (L) - 4:00 p.m (NY)

ECO 14%- PRE 45% - PFB 12% -

Total margin EXI 13% - NUT 11% - GRA 12% -
on position*
7% 12%
ISA 11% - PFA 11% - CEM 15% -
GRU 13% - PCE 15%

(L): Colombia time. (NY): New York time. * Subject to change by CCP.
 Characteristics of the listed Futures in the BVC

FUTURE Overnight Index Swap INFLATION

Mnemonic Identifier IB CPI

Underlying IBR overnight Monthly IPC

Contract Size COP 500.000.000 COP 250.000.000

6 daily contracts at
Contract Months 3 daily contracts
1-3-6-9-12-18 months

Tick Size 0.001 0.01

Settlement method Cash Cash

1 work day after

Expiration date En 1-3-6-9-12-18 months
the last day of trading

Fifth day of the

Last Trading Date N.A.
expiration month

Trading hours 8:00 a.m (L) - 1:00 p.m (L) 8:00 a.m (L) - 1:00 p.m (L)

1 and 3 months (0,11%) -

Total Margin
on Position* 6 (0,23%) -9 (0,34%) - 0.5%
12 (0,45%) -18 (0,68%)

(L): Colombia time. (NY): New York time. * Subject to change by CCP.
 BVC Derivatives Market Members

Brokers Banks and Credit Entities Pension Funds and Trusts

ACCIONES Y VALORES BANCO AGRARIO FIDUPREVISORA

ALIANZA VALORES BANCO AV VILLAS PORVENIR AFP

ADCAP BANCO DAVIVIENDA PROTECCIÓN AFP

VALOR ALTA BANCO DE BOGOTA FIDUBOGOTÁ

BBVA VALORES COLOMBIA BANCO DE OCCIDENTE FIDUCIARIA BANCOLOMBIA

BTG PACTUAL BANCO GNB SUDAMERIS

CASA DE BOLSA BANCOLOMBIA

CIA PROFESIONALES DE BOLSA BBVA

CORREDORES DAVIVIENDA CITIBANK

CREDICORP CAPITAL CORFICOLOMBIANA

GLOBAL SECURITIES CORPBANCA

HELM COMISIONISTA JP MORGAN Overall the BVC Derivatives

Market has 33 members.
SERVIVALORES GNB SUDAMERIS BANCO SANTANDER DE NEGOCIOS

VALORES BANCOLOMBIA

ULTRASERFINCO
 Clearing and settlement structure CRCC

Individual Clearing Non Clearing General Clearing

Members (ICM) Members (NCM) Members (GCM)

CCIONES Y VALORES BBVA VALORES COLOMBIA BANCO AGRARIO

ALIANZA VALORES CASA DE BOLSA BANCO AV VILLAS

ADCAP SERVIVALORES GNB SUDAMERIS BANCO POPULAR

BTG PACTUAL GLOBAL SECURITIES BANCO DAVIVIENDA

CIA PROFESIONALES DE BOLSA VALOR ALTA BANCO DE BOGOTA

ULTRASERFINCO HELM COMISIONISTA BANCO DE OCCIDENTE

BANCOLDEX VALORES BANCOLOMBIA BANCO GNB SUDAMERIS

CORREDORES DAVIVIENDA FIDUCIARIA BANCOLOMBIA BANCOLOMBIA

CREDICORP CAPITAL FIDUCIARIA BOGOTA BBVA

BANCO SANTANDER DE NEGOCIOS FIDUCIARIA LA PREVISORA CORPBANCA

CITIBANK CORPBANCA INVESTMENT TRUST CORFICOLOMBIANA

BANCO COLPATRIA PROTECCIÓN AFP

JP MORGAN CF PORVENIR AFP

BNP PARIBAS CF

ICM (14) NCM (13) GCM (11)

Just CCPmembers

Brokers, Banks and Brokers, Pension Funds Banks and

Credit Entities and Financial societies Credit Entities
Derivatives Market Figures
 Volumes in COP and number of contracts

Futures Market Volumes Average daily trading volume

$ 540.265
$ 500.866

Million
Contracts

16
140.000 $ 500.000

Trillion COP
14
120.000 $ 393.248
12 $ 400.000
100.000 $ 343.238 $ 346.136
10
80.000 $ 300.000
8 $ 263.869
60.000
6
40.000 $ 200.000
4

20.000 2 $ 102.680
$ 100.000
0 0
$ 17.045

20 -11
20 -11

20 -11
20 -11

-3
20 -3
20 -5

20 -3
20 -5
20 -3
20 -5

20 -3
20 -5

20 -7
20 5-9

20 -1
20 -7
20 4-9

20 -1
20 -1

20 -7
20 2-9

20 -1

20 -7
20 3-9

20 -1

$ 2.931

16
14
14

15
15
12
12

13
13

16
14

14

15

15
12

12

13

13

$0

15
13

14
12

1
1

1
1
20

2008 2009 2010 2011 2012 2013 2014 2015 2016

Equity Exchange Rate Interest Rate Total amount Interest Rate Exchange Rate Equity

Open Interest
COP MM 2011 2012 2013 2014 2015 2016
Interest Rate 188.8 154 253.2 258.9 223.6 176.3
100.000
90.000 TES: 5,636 Exchange Rate 153.6 106.9 88.9 127.4 273.5 358.4
OIS: 6,755
80.000 Equity 0.7 2.9 3.9 6.8 3.7 5.4
Equity: 38,169
70.000 Exchange Rate: 3,404 Total Market 343.2 263.9 346.1 393.2 500.8 540.1
60.000 Total: 53,964
50.000
40.000
30.000 ∆ Year by Year ∆ 2012 ∆ 2013 ∆ 2014 ∆ 2015 ∆ 2016
20.000 Interest Rate -18,4% 64,4% 2,3% -13,6% -21,2%
10.000
- Exchange Rate -30,4% -16,8% 43% 114,7% 31,0%
Equity 314,3% 34,5% 74,4% -45,6% 45,9%
/1 12

1/ 3

1/ 3
1/ 2

1/ 3
/1 13

/1 15
1/ 4

1/ 6
16
1/ 2
7/ 012

1/ 4
1/ 5
7/ 15

1/ 015
1/ 4
4
4/ 01

1/ 01
1/ 01

7/ 01

4/ 01

1/ 01
01

1/ 01
4/ 01
7/ 01
10 201
10 20

10 20

10 20

20
20
2

/2
/2

2
2

/2

/2
2

Total Market -23,1% 31,1% 13,6% 27,4% 7,8%

1/

1/

1/
1/

/1
1/

4/

Interest Rate futures Equity Futures Exchange Rate futures

Source: BVC, @ 31.03.2016 P: Proprietary Trading - T: Third Parties

Main Products Figures
 Derivatives Market Figures
Notional Outstanding Amount
31/03/2016 90 $ 3,5

Billion

Billion
Securities Billon COP 80 $ 3,0
70
$ 2,5
60
T18 $290.36 50 $ 2,0
NOA Equity Futures 40 $ 1,5
T19 $176.84 30
$ 1,0
20
T20 $424.73 10 $ 0,5
0 $ 0,0
T24

01/2014
02/2014
03/2014
04/2014
05/2014
06/2014
07/2014
08/2014
09/2014
10/2014
11/2014
12/2014
01/2015
02/2015
03/2015
04/2015
05/2015
06/2015
07/2015
08/2015
09/2015
10/2015
11/2015
12/2015
01/2016
02/2016
03/2016
$387.96

T30 $72.23
PFA PFB PCE PFG COL (RA)
Other ECO CEM GRA NUT
TES $110.34 EXI ISA GRU PRE

Futures 2000 $4.500

Billion
Billion
1800 $4.000
TOTAL
$1,462.48 1600 $3.500
TES
1400
$3.000
PFA $10.24 1200
$2.500
1000
ECO $35.34 800
$2.000
NOA Interest Rate Futures $1.500
600
EXI $12.03 $1.000
400
$500
PFB $21.83 200
0 $-

01/2015

03/2015

05/2015

07/2015

09/2015

11/2015
01/2014

03/2014

05/2014

07/2014

09/2014

11/2014

01/2016

03/2016
CEM $0.67

COL $0
T18 T19 T20 T24 T30 T26 T16 T22 T28 Future OIS (RA)
Other Single $7.11
Stocks Futures
1000 40

Billion
Billion

TOTAL 900
$87.24 35
EQUITY 800
30
700
TRM $327.01 600 25
500 20
TRS $18.73 NOA Exchange Rate Futures 400 15
300
10
200
TOTAL FX $345.75 5
100
0 0
OIS $3,377.50
01/2015
02/2015
03/2015
04/2015
05/2015
06/2015
07/2015
08/2015
09/2015
10/2015
11/2015
12/2015
01/2014
02/2014
03/2014
04/2014
05/2014
06/2014
07/2014
08/2014
09/2014
10/2014
11/2014
12/2014

01/2016
02/2016
03/2016
TOTAL
$5,272.98
MARKET TRM TRS (RA)

Source: BVC, @ 31.03.2016

 TES Futures

TES Futures Market 14 Market share by volume at march 2016

Trillion COP
Contracts

50.000 Interest Rate futures

12

40.000 10

8
30.000
21%
6 27%
20.000
4
5%
10.000
2 5%
37%
0 0
6%
6%

20 5
20 7
20 5-9

20 1
-3
20 7
20 4-9

20 1
20 3
20 5
20 7
20 -9

20 1
20 3
20 5
-1
-3

20 5
20 7
9

20 1
20 3

20 1
20 1
20 1
1

-
-

-
-
-

-
-
-

-
-
-
-
-

-
-
-

-1
-1
-1
-1

15

16
16
14
14
14

15
15
15
13

14
12
12
12
12
12

13
13
13
13

1
1

15
14
13
12
20
20
20

20
20

Otros T19 T18 T24 T16 TEL TEM TES T20 10%

14% 7%
14%
Open Interest
14.000 17%
Contracts

T18: 1,229 10%

12.000 T19: 720
T20: 1,521
10.000 T24: 1,392
T30: 308 CREDICORP P BANCO DAVIVIENDA P
8.000 Total: 5,636
CREDICORP T BBVA P
6.000
BTG PACUAL P BANCO AGRARIO P
4.000
BTG PACTUAL T OTHERS
2.000

0
12

13

15
14
2

6
01

01

01

01

01

01

01

01

01

01

01

01

01
20

20

20
20
/2

/2

/2

/2

/2

/2

/2

/2

/2

/2

/2

/2

/2
1/

1/

1/
1/
31

30

31

31

30

31

31

30

31

31

30

31

31
/3

/3

/3
/3
1/

4/

7/

1/

4/

7/

1/

4/

7/

1/

4/

7/

1/
10

10

10
10

T18 T19 T20 T24 T30 T26 T16 T22 T28 TEL TEM TES

Source: BVC, @ 31.03.2016 P: Proprietary Trading - T: Third Parties

 Market Makers Program

The BVC has a market makers program designed to promote liquidity, assure the price formation and
promote the development of new products.
In the TES Futures of Specific Reference market makers program, the Derivatives Market has the
following partners:

The conditions that assure its purpose are:

A 70% presence in the month trading sessions, with 10 daily measurements of three conditions:

1. Trading of 5 Specific Reference instruments of the Market Makers Program

(16, 18, 19, 20, 24, 26, 28, 30).

2. Bid-Offer Spread (from 0.2 to 1 point of price as a function of the bond maturity).

3. A minimum trading of 10 contracts for TES maturity > 5 years and of 20 contracts for TES maturity
< 5 years, simultaneously in a bid and offer book order price.
 OIS Futures

Volume by maturity Market Share by Volume

1%
5% 3% 1% 0%
5% 4%

I03 13% BANCO DAVIVIENDA

7%
I01 BBVA

I06 49% CREDICORP

55% I12 BANCOLOMBIA
I18 BTG PACTUAL
25%
I19 32%
ULTRASERFINCO

Type of participant Open Interest and NOA

9.000 I01H99F 4500

Contracts

Billions of COP
1% 8.000 I03H99F 4000
I06H99F
7.000 3500
I09H99F
6.000 3000
I12H99F
5.000 2500
I18H99F
PROPIETARY
4.000 NOA (ED) 2000

THIRD PARTIES 3.000 1500

2.000 1000

1.000 500
99% 0 0
01

01

15

15

15

15

15

15

15

15

15

01

01

16

16
0

01
/2

/2

20

20

20

20

20

20

20

20

20

/2

/2

/2

20

20
2
/1

/1

/1

/1

/1
1/

1/

1/

1/

1/

1/

1/

1/

1/

1/

1/

1/
11

12

10

11

12
1/

2/

3/

4/

5/

6/

7/

8/

9/

1/

2/

3/
Source: BVC, @ 31.03.2016 P: Proprietary Trading - T: Third Parties
 Exchange Rate Futures

Exchange Rate Futures Market Market share by volume at march 2016

Exchange Rate futures
70.000
Contracts

10

Trillion COP
60.000
17%
8
50.000
17%
6
40.000
3% 28%
30.000
4 6%
20.000
3% 11%
2
10.000
7%
0 0
12%
20 11

20 11

20 11

20 11
20 -3
20 -5

20 -3
20 -5

20 -3
20 -5

20 -3
20 -5

-3
20 -1

20 -7
20 2-9

20 -1

20 -7
20 3-9

20 -1

20 -7
20 4-9

20 -1

20 -7
20 5-9

20 -1
12
12

13
13

14
14

15
15

16
12

12

13

13

14

14

15

15

16
-

-
12

13

14

15
1

1
20

6%
TRS TRM Exchange Rate
13%

6%
Open Interest
24%
12% 7%
20000
11%
Contracts

TRM: 2,164
TRS: 1,240 CREDICORP P
15000 BTG PACTUAL P
Total: 3,404
CREDICORP T BTG PACTUAL T
10000
ALIANZA P ULTRASERFINCO P
5000 ALIANZA T ULTRASERFINCO T

ADCAP COLOMBIA P OTHERS

0
ADCAP COLOMBIA T
12

13

14

15
2

13

5
4

6
01

01

01

01

01

01

01

01
01

01

01

01
20

20

20

20
0
/2

/2

/2

/2

/2

/2

/2

/2

/2
/2

/2

/2

/2
1/

1/

1/

1/
31

30

31

31

30

31

31

30

31
31

30

31

31
/3

/3

/3

/3
1/

4/

7/

1/

4/

7/

1/

4/

7/
1/

4/

7/

1/
10

10

10

10

14 of the 24 members have traded

TRM Futures TRS Futures

Source: BVC, @ 31.03.2016 P: Proprietary Trading - T: Third Parties

 Equity Futures

Equity Futures Market Market share by volume at march 2016

Equity futures
500
Billion COP

450
400
350 16%
12%
300 4%
250
11% 31%
200
150
6%
100
50
0
14%
4%
20 1

20 1

20 1

20 1

3
20 -3

20 -5

20 -3

20 -5

20 -3

20 -5

20 -3

20 -5
20 -1

20 -7
20 2-9

20 -1

20 -7
20 3-9

20 -1

20 -7
20 4-9

20 -1

20 -7
20 5-9

20 -1
-1

-1

-1

-1

-0
12

12

13

13

14

14

15

15
12

12

13

13

14

14

15

15

16
12

13

14

15

16
1

1
20

13%
Otros COL GRA PFA EXI PFB ECO

9% 20%

7%
Open Interest
80000
Contracts

PFA: 8,830
70000 ECO: 27,397 9%
EXI: 783
14% 14%
60000 PFB: 829 5%
CEM 57
50000 COL: 0
Total: 46,465 CREDICORP P VALORES BANCOLOMBIA P
40000
CREDICORP T
30000 VALORES BANCOLOMBIA T
20000 BTG PACTUAL P
CORREDORES DAVIVIENDA P
10000 BTG PACTUAL T
CORREDORES DAVIVIENDA T
0
ULTRASERFINCO P
OTHERS
12

13

15
12

12

6
01

01

01

01

01

01

01

01

01

01

01

01
20

20

20
20

20

/2

/2

/2

/2

/2

/2

/2

/2
/2

/2

/2

/2

ULTRASERFINCO T
1/

1/

1/
/

/
31

30

31

31

30

31

31

30

31

31
1

31

30

31
/3

/3

/3
/3
1/

4/

7/

1/

4/

7/

1/

4/

7/

1/

4/

7/

1/
10

10

10
10

PFA ECO EXI PFB CEM ISA PCE GRA GRU PFG NUT PRE COL
12 of the 15 members have traded

Source: BVC, @ 31.03.2016 P: Proprietary Trading - T: Third Parties

 COLCAP index Futures
Market makers program

The BVC has a market makers program designed to promote liquidity, assure the price
formation and promote the development of new products.

In the Futures market makers program of COLCAP index, the Derivatives Market has the
following partner:

The conditions that assure its purpose are:

An 80% presence in the month trading sessions, with 10 daily measurements of 3 conditions:

1. Orders in the outright COLCAP future contract.

2. Bid-Offer Spread (20 ticks or 10 price points).

3. A minimum trading of 10 contracts simultaneously in a bid and offer book order price.
 Type of Participant and Market

Exchange Traded Volume as a share of Total Volume

Since the beginning of 2016,

90,7% of total volume traded 100%
was Exchange Registered. 80%

60%

Exchange Exchange 40%

Month
Registered Traded 20%

2016-01 85.7% 14.3% 0%

2012-01
2012-03
2012-05
2012-07
2012-09
2012-11
2013-01
2013-03
2013-05
2013-07
2013-09
2013-11
2014-01
2014-03
2014-05
2014-07
2014-09
2014-11
2015-01
2015-03
2015-05
2015-07
2015-09
2015-11
2016-01
2016-03
2016-02 92.4% 7.6%
2016-03 94.0% 6.0%
Interest Rate and FX Futures Interest Rate Future FX Futures

Volume Share of Third Parties Participants

100%
80%
60%
40%
38,9% of traded volume in 2016 has
20%
been done by third parties participants.
0%
2012-01
2012-03
2012-05
2012-07
2012-09
2012-11
2013-01
2013-03
2013-05
2013-07
2013-09
2013-11
2014-01
2014-03
2014-05
2014-07
2014-09
2014-11
2015-01
2015-03
2015-05
2015-07
2015-09
2015-11
2016-01
2016-03

Total Futures Interest Rate Futures FX Futures Equity Future

Source: BVC, @ 31.03.2016

 Futures Market infrastructure

Proprietary
Third Parties
Mutual Funds
Booking,
Front portfolio
m
  anagement

Controls and Limits

Risk Middle
Prices

Price Providers

Prices
Valuation Back Accounting

ICM (15) NCM (13) GCM (11)

Brokers, Banks and Brokers, Pension Funds Banks and

Credit Entities and Financial societies Credit Entities
 BVC and CCP role

Creation and setting of standarized futures. Controls and manages counterparty risk.

Ensure clearing and settlement

Nasdaq´s X-Stream platform administration. processes.

Ensure correct price formation, transparency Collateral daily management and Profit
and behaviour of the market. and Loss controls.

Provides training and assistance about the different products to

the market participants
Product´s Other Aspects
 Leverage and Collateral

Haircut Ticker* Haircut*

Nemotécnico Haircut Nemotécnico Haircut

TFIP10040522 32,23% ECOPETROL 50%
TFIP10281015 2,00% PFBCOLOM 50%
TFIP11241018 9,70% PREC 75%
TFIP15240720 2,56% GRUPO SURA 50%
CCP accepts the following collaterals: TFIP15260826 17,06% ÉXITO 50%
TFIP16280428 7,89% NUTRESA 50%

1. Cash in Colombian pesos. TFIT01030715

TFIT02010716
2,00%
2,00%
ISA
PREFERENCIAL AVAL
50%
50%
Fixed Income TES and UVR according to the TFIT03111115 2,00% CEMENTOS ARGOS 50%
2. list presented below. TFIT06110919 2,00% PREFERENCIAL
CEMENTOS ARGOS
50%
TFIT06211118 2,00%
TFIT07150616 2,00% PREFERENCIAL
3. Futures listed shares. TFIT10040522 16,11% GRUPO SURA
50%

50%
TFIT10281015 2,00% GRUPO ARGOS
TFIT11241018 4,85%
TFIT15240720 2,00%
Please refer to Sections 6.3.1 and 6.3.2 of the ‘Circular TFIT15260826 8,53%
Única’ of CCP to see the detail on the collaterals and its TFIT16240724 3,32%
haircuts. TFIT16280428 3,94%
TFIT16180930 3,79%
TUVT08170517 4,27%
TUVT06170419 2,00%
TUVT10100321 2,00%
TUVT17230223 13,14%
TUVT20250333 4,59%

*Depends on CCP definitions, updated 14.07.2015.

Strategies
 Hedging

HEDGING STRATEGY

Reduce price movements market risk for the different

assets traded on the Colombian Spot Market.

Since the begining of the trade you can set the price to buy
or sell an asset regardless on the fluctuation of prices.

A really good alternative for importers and exporters to

hedge against exchange rate fluctuations.

Leverage allows a greater efficiency when using a hedging

strategy.
 Speculative Trades

SPECULATIVE STRATEGY

Look for the highest capital profit according to your

market spectations

Take advantage of the market opportunities regardless

of the trend.

Speculative strategies are powered by futures

leverage. This allows higher yields while a higher risk
is taken.
 Arbitrage

ARBITRAGE STRATEGY

Capture market imperfections through a simultaneous

operation in two markets.

Possibility of arbitrage between the future market and

spot market or between the future market and the OTC
derivatives market.

Investment strategy without any risk exposure

and the capital efficiency of using leverage and
CCP collateral netting.
New Products
 OIS Future

The OIS Future is a new instrument designed to manage short term interest rate risk. It was
created under the same structure of the OTC market but it also has the added values of the
standardized market.

Fixed Rate
Nominal
Seller COP 500.000.000 Buyer
Floating Rate

Performance:

[ [
te-1
r d
Rp= 360 1+ i * i -1 IBR Zero
n i=ts
360 Coupon Curve

Historical leg Proyected leg

Valuation date
Structure:
a. Daily traiding of specific maturities:1, 3, 6, 9, 12 and 18 months.
b. Settlement at expiration
c. Efficiency in the management of collateral: netting and no daily adjustments of P&L.
OTC Products
 OTC registration

As a result of the global regulatory changes, in Colombia, through the Decree 4567 of
2011, the Superintendencia Financiera requires the registration of every derivatives
transaction carried out by entities supervised in the OTC market.

In order to implement an agile and efficient OTC registration system which allows the
fulfillment of the obligation, the BVC and Bloomberg have made an alliance to offer its
Registration OTC platform.

3. The operation is
sent to the BVC
Entity 1

1. Entities 2. Entities make the

trades OTC register of the operation
through the Bloomberg
Platform

4. BVC reports the

Entity 2 operation to the SFC
 Information Tools
Web

Derivatives Market
Official BVC Website Traders BVC Website
Monthly Report
e-BVC

Market data on News and newsletters Product´s Standardized

real-time or lagged features
Vendors
 Market members support

Derivatives Team Operations Team Sales Team

Nicolás Mayorga M.
Derivatives Manager
nmayorga@bvc.com.co
Celso Guevara C. Sandra Torrente
Operations Manager Sales Manager
Tel: 3139800 (1111)
cguevara@bvc.com.co storrente@bvc.com.co
Tel: 3139800 (2033) Tel: 3139800 (1114)
Anton Glatz
Derivatives Director
aglatz@bvc.com.co Ross MacDonald Juan Carlos Téllez
Tel: 3139800 (1550) Operations Leader Sales Director
rmacdonald@bvc.com.co jtellez@bvc.com.co
Diego Blanco Tel: 3139800 (2015) Tel: 3139800 (1535)
Derivatives Professional
dblanco@bvc.com.co
Tel: 3139800 (1265) Juliana Prieto Carlos Suárez
Business Professional Sales Director
Julián León jprieto@bvc.com.co csuarez@bvc.com.co
Derivatives Professional Tel: 3139800 (2014) Tel: 3139800 (1138)
jleonh@bvc.com.co
Tel: 3139800 (1227)
 Releases

The Bolsa de Valores de Colombia SA expressly states that this material

has just educational and informational purposes. This document does
not contain any advice on the operation of the derivatives market and
the implementation of these mentioned strategies is responsibility of
those who use them and not responsibility of the BVC. The BVC rules that
regulate the derivatives market and its norms constitute the official
source to consult the current contract specifications and its applicable
regulations.