JSE adds silver and platinum commodities to Quanto Futures product range
Johannesburg, 1 November 2012: The Johannesburg Stock Exchange (JSE) has again expanded its commodities product range by adding silver and platinum quanto futures to its existing gold, copper and Brent crude Quanto Futures which were launched earlier this year.
A Quanto Future, a derivative instrument that in this case is a rand denominated commodity investment product that delivers the same payoff as a pure dollar denominated commodity investment, enables investors to gain exposure to the foreign underlying commodity whilst not being exposed to the influence of the dollar-rand exchange rate. This simplifies the investment decision and allows for focus on the returns of the underlying commodity only.
The JSE has partnered with Rand Merchant Bank (RMB) as the initial market maker with the commodities referenced as part of the JSE’s existing licensing agreement with the CME Group.
Chris Sturgess, Director of the Commodities Division at the JSE says, “We have seen keen interest expressed in the new Quanto Futures we offer and by adding silver and platinum to the product offering, we continue to provide derivative market participates with opportunities to easily access the international commodities markets.”
As South Africa’s only full service securities exchange, the JSE connects buyers and sellers in four different financial markets, namely equities, equity derivatives, commodities derivatives and interest rate instruments. The JSE Ltd offers the investor a first world trading environment, with world class technology, surveillance and settlement in an emerging market context. It is amongst the top 20 largest equities exchanges in terms of market capitalisation in the world.
For further information, please visit www.jse.co.za/quantofutures