Yield-X launches 4th Currency Future Contract

May 6, 2008 at 12:00 AM EDT

JOHANNESBURG, 6 May 2008. – From tomorrow (7 May 2008), investors will be able to trade Australian Dollar/Rand Currency futures contracts on Yield-X, the JSE’s interest rate exchange.

This is the fourth currency futures contract to be launched on Yield-X within a year and follows the successful launch of the Dollar/Rand, Sterling/Rand and Euro/Rand currency futures contracts.

Currency futures are derivative contracts which allow investors to trade the underlying exchange rate (in this case, the Australian Dollar and SA Rand exchange rate) for a period of time in the future.

As with the other currency futures, traders can trade near, middle and far contracts (i.e. contracts with June, Sept and Dec expiry dates) with settlement taking place in South African Rands. The nominal contract size is AU$1 000 with exchange fees of R1.14 (incl VAT) for each contract and initial margin requirements of R275 for each near-dated contract.

“Developed by the JSE with two market makers, Standard Bank and Investec, currency futures have really taken off in our market. In the six months from Oct 2007 to March 2008, 538 565 currency futures contracts were traded to the value of R4,483,359,755. We believe this latest addition will add significantly to both values and volumes and that the market will remain bullish with volumes continuing to increase substantially in the future,” says Warren Geers, General Manager, Trading Division at the JSE.

For further information, please contact:

Warren Geers
JSE Ltd
(011) 520 7470
083 296 8842

Or

Roz Thomas
Corporate Communications Consultants (Pty) Ltd
082 925 8806

What are the benefits of Currency futures?

Currency Futures offer numerous benefits. They allow individuals to hedge against currency risk and to take a view on the movement of the underlying exchange rate. They also allow individuals to diversify their local and foreign assets. While this is clearly advantageous to retail investors, institutional investors are also able trade these futures within certain limits. Pension funds and long term insurance companies are subject to their 15 % foreign allocation allowance and asset managers and registered Collective Investment Schemes are subject to their 25 % foreign allocation allowance. All corporate entities, trusts, close corporations though are prohibited from trading unless they have a valid exchange control approval from the South African Reserve Bank.

About JSE Limited

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