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Skip Navigation LinksMarkets > Equity Derivatives Market > Equity Derivatives Market history
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Market history

History of SAFEX

The development of exchange-traded derivative instruments in South Africa started in the late 1980's. The following chronological list summarises some of the major events that have shaped the exchange:

  • July 2010

The Equity Derivatives Market implements a new billing model, introducing the benefits of a maker-taker model , on-screen liquidity and true price discovery.
The Maker-Taker Model which is on most instruments on the Equity Derivatives market will cut transaction fees to zero for makers of liquidity (trade initiators) trading through the central order book.

 

  • June 2010

The Global Market went live, providing clients with access to both the Equity Derivatives and Commodity Derivatives markets through a common trading window.

  • October 2009

The Exchange, for the first time, starts valuing certain Single Stock options off a volatility skew.

  • May 2009

Introduction of Pre- and Post-Trade Anonymity on all equity derivatives.

  • March 2009

Charges on BDA journal entries reduced to zero for open positions and reduced to 6c for Initial Margin journal transactions on ALMI.

  • November 2008

International Derivatives (IDX) is launched. IDX provides South African investors with an opportunity to trade and gain exposure to the price movements of internationally listed equities (shares) and internationally recognised indices through the JSE.

 

  • August 2008

JSE Safex successfully implements Nutron Trading System. A locally developed trading system allowing high frequency central order book trading.

 

  • June 2006

The first Can-Do’s listed

  • August 2001

Safex moves into the JSE building.

  • May 2001

Safex and JSE members agree to the buyout of Safex by the JSE Securities Exchange. Effective date of transaction to be 1 July 2001. The JSE agrees to retain the Safex Branding and creates two divisions - Safex Financial Derivatives and Safex Agricultural Derivatives.

 

  • August 2000

Individual Equities contract listed has increased to 49.

  • July 2000

New Government Bond Index launched (GOVI).

  • February 1999

Individual Equity Options are replaced with twelve Individual Equity Futures and Options on the futures. Twelve Index Equity Futures listed.

 

  • March 1998

Options introduced on agricultural products

  • September 1997

Individual equity options introduced on the six largest equity counters.

 

  • January 1997

Open interest exceeds 1 million contracts.

  • May 1996

Introduction of fully-automated trading through a specifically designed system that was written in South Africa.

 

  • January 1995

Safex Agricultural Derivatives Division opened.

  • December 1993

Volumes exceed 1 million per month for the first time. Open interest is over 500,000 contracts.

 

  • January 1993

Monthly volumes exceed 200,000. Open interest exceeds 100,000 contracts.

 

  • June 1992

Monthly volumes start consistently exceeding 100,000 contracts.

  • October 1991

Permission received from the South African Reserve Bank for non-residents to participate on Safex via the Financial Rand system.

 

  • August 1990

Enabling legislation (the Financial Markets Control Act, 1990) is enacted and Safex is officially licensed as a derivatives exchange. Officially opened on 10 August 1990 by the Minister of Finance. Monthly volumes are approximately 60,000 contracts, with 10,000 open interest.

 

  • April 1990

Safcom takes over operation of the informal futures market from RMB. Futures contracts are available on equity indices, long bonds and money market products

  • September 1988

Twenty one banks and financial institutions meet and establish the South African Futures Exchange (Safex) and the Safex Clearing Company (Safcom).

 

  • April 1987

Rand Merchant Bank Limited (RMB) start 5 trading "futures" contracts   on various equity indices and long bonds. RMB is the exchange, clearing house and only market maker.

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