JSE Lists Mini FTSE/JSE ALSI Top 40 Futures Contract for Retail Investors

June 3, 2008 at 12:00 AM EDT

JOHANNESBURG, 3 JUNE 2008.  Today, the JSE listed a MINI FTSE/JSE Top 40 futures contract which now allows retail investors to invest in a future or option on the future on the ALSI Top 40 Index. This contract will be known as the ALMI.

“The existing ALSI Top 40 futures contract is valued at approximately R300 000, which is out of reach to many retail investors because their rand exposure would be too high,” explains Allan Thomson, Head of Trading at the JSE. “Now, with the listing of the Mini ALSI Top 40 futures contract, the contract size is 100th of the size of the current ALSI Top 40 futures contract which means that the investor can get the same exposure to the ALSI Top 40 but at approximately R3 000 exposure per contract.”

According to Thomson, the development and subsequent listing of the Mini ALSI Top 40 contract came about due to increasing pressure from retail investors via their brokers to be able to obtain a future or option on the ALSI Top 40 without the large exposure.

And that demand is evident on day one already. Since listing this morning at 8h30, over R525 000 in traded value had gone through the Exchange by 12h00 already.

The Mini ALSI contract is in line with international trends that has seen the successful launch of the mini-contracts such as the Mini S&P 500, the Mini Nasdaq 100 and the Mini FTSE 100.

“As we’ve seen with the successful launch of other derivative products on our markets, such as Single Stock Futures and Currency Futures, as a result of investor demand, we anticipate that the mini-ALSI Top 40 contract will follow in much the same vein,” concludes Thomson.

For further information, please visit www.jse.co.za

FOR FURTHER INFORMATION PLEASE CONTACT:
Roz Thomas/ Victoria Williams           
Corporate Communications Consultants (Pty) Ltd           
Tel: (011) 783 8926                                                      
Fax: (011) 783 7608                                           
Email: rozt@corpcom.co.za/ victoria@corpcom.co.za

On behalf of Allan Thomson
JSE Ltd
Tel (011) 520 7082
082 377 0717

 

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As South Africa’s only full service securities exchange, the JSE connects buyers and sellers in four different financial markets, namely equities, equity derivatives, agricultural derivatives and interest rate instruments (Yield-X). The JSE Ltd offers the investor a truly 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