In line with the international process of financial innovation, in the last months ROFEX has generated new combined trades, which consist in the simultaneous trading of two or more derivatives contracts on different products, positions or exercise prices.
In Argentina, the Banco Ciudad of Buenos Aires was the first bank to offer their clients the combined trades. Through Bull Spreads (a kind of combined trade) traded in ROFEX, this public bank has generated an innovative product in the local market called DIVA (Variable Interest Deposits). With DIVA, a retail depositor can obtain easily and without any complication assured returns in pesos and at the same time profits derived from U.S. dollar increases.
In this way, the Banco Ciudad has shown to be in tune with current trends in financial innovation and with the current needs of their clients. Thanks to these new developments, this entity allows non-specialized investors to gain access to the benefits of the futures market.
Apart from this product of the Banco Ciudad, it is worth mentioning that the combined trades offered by ROFEX can be made on any of the products negotiated in the Exchange, with the possibility of generating financial strategies on a currency portfolio (Euro, U.S. dollar and Real) or the rates curve (Badlar, Bocon PRE8, Boden2012, Bocon PR12, Bogar2018 and Discount in pesos).
These product combinations turned out to be interesting and innovative in the current volatility context, on the basis of the increasingly important role played by derivatives in the foreign and local market. In order to provide assistance and technical support in the negotiation of combined trades, ROFEX offers an interdisciplinary team among the Research, Product Development and Trading Desk areas, which will facilitate the products´ liquidity structuring and provision.
Besides the Bull Spread, ROFEX´s Financial Derivatives Division (DDF) offers other combined trades between futures and options contracts: swaps, packages, Bear Spreads, straddles and strangles.
Through these innovative proposals which are highly profitable in this current context, ROFEX continues to fulfill its purpose of promoting the trading of futures and options on financial products, offering a variety of products and trades which enable people and organizations to strengthen their financial situation.