BRICS Exchange Alliance cross-lists Benchmark Equity Index Derivatives

May 5, 2012 at 5:44 AM EDT

Johannesburg, 4 April 2011 – The JSE has welcomed the positive response to its launch of derivative instruments which give investors exposure to the other BRICS markets. The cross-listed derivative contracts traded shortly after the market opening on Friday 30 March, when the BRICS exchanges launched the new products. The BRICS exchange alliance now offers trade in benchmark equity index derivatives in local currencies on each BRICS member’s exchange. 

The derivative products include:

  • BRAZIL: BM&FBOVESPA - IBOVESPA Futures 
  • RUSSIA: MICEX-RTS - MICEX Index Futures
  • INDIA: BSE Limited - Sensex Index Futures 
  • CHINA: Hong Kong Futures Exchange - Hang Seng Index Futures and H-Shares Index Futures 
  • SOUTH AFRICA: JSE - FTSE/JSE Top40 Futures

“The first trade was seen on the Hang Seng Index Future with 1 contract traded. This represents a further step towards globalising South Africa’s financial markets,” says Graham Smale, Director of Bonds & Financial Derivatives. The FTSE/JSE Top40 index has been one of the best performing over the last year within the BRICSMART grouping.

Additional trading was seen on the BSE where 222 FTSE/JSE Top40 Futures contracts were traded second to the Hang Seng Index Futures with 324 contracts traded, followed by the IBOVESPA and MICEX Index Futures with 191 and 145 contracts traded respectively. The Hong Kong Futures Exchange had also reported trades on Sensex Index Futures thus far. The BRICSMARTS exchanges (with the exception of MICEX, who will be launching later) all launched successfully with vibrant events being held within the various exchanges. 

Last October the JSE and other BRICS member stock exchanges signed an alliance agreement at the World Federation of Exchanges meeting in Johannesburg. This was good news for the JSE: with global investors increasingly seeking exposure to leading developing markets, this initiative gives investors easier access to BRICS markets, including our own. 

The cross-listing is the first stage of collaboration between the BRICS members. The BRICS alliance is also working on future opportunities to give investors from each BRICS member country exposure to the increasingly important BRICS economies.