The first Variance Future for the JSE

July 23, 2008 at 12:00 AM EDT

JOHANNESBURG, July 23 2008 – The JSE has listed and begun trading on the first ever Variance Future on the exchange. With a solid demand for this type of investment tool, this listing could be the forerunner of a new asset class at the JSE.

A Variance Future, otherwise known as a variance swap, is a complex derivative instrument aimed at the local asset manager that can be bought through an international bank. A Variance Future gives the institutional investors a hedging tool against volatility by eliminating the need to constantly re-balance a position.
                                                                        
The JSE is at the forefront of developing world-class derivative instruments. “We are very proud of this listing - to our knowledge, only two other exchanges are known to have listed this type of instrument, namely CBOE - Chicago Board Options Exchange - and Liffe,” comments Hannes Viljoen, Product Specialist for the JSE Derivatives Trading Team. “With many other requests for Variance Futures, this listing is the first of a completely new asset class on the JSE.”