In a series of articles, we’re exploring the development of single-stock options markets across the APAC region. Our aim is to highlight the many uses of the products as well as factors that may be acting as barriers to growth.

For the past several years, US stock investors have hedged their portfolios largely by looking at their calendars. Fed meetings, CPI prints, elections – whenever an event appeared on the horizon, investors would look to short-dated options to protect against the possibility of volatility.

While Brazil’s securities borrowing and lending framework has its strengths, it still trails global peers. In this paper, we propose steps to modernize the country’s SBL system, without compromising safety.