African Currency

An African Currency Futures Contract (CF) is an agreement that gives the investor the right to buy or sell an underlying African currency at a fixed exchange rate at a specified date in the future. One party to the agreement agrees to buy (longs) the Future at a specified exchange rate and the other agrees to sell (shorts) it at the expiry date. The underlying instrument of a CF is the rate of exchange between one unit of African currency and the South African rand.

Who is this for

Investors, importers, exporters and travellers can use CFs to hedge themselves against movements in the exchange rate. Speculators use CFs to make a profit on short-term movements in prices. Arbitrageurs use them to profit from the price differentials of similar products in different markets. Some investors trade CFs to enhance the performance of a portfolio of assets over the long term.

Features

  • The African currencies will also provide the market participants with the ability to get exposure on the JSE to the exchange rate between the US Dollar and the Zambian, Kenyan and Nigerian currencies through trading synthetic cross currencies.
  • For example, investors can get exposure to the exchange rate between the US Dollar and the Kenyan Shilling by trading both against the Rand
  • To promote cross-currency trading the JSE will only charge trading fees on one of the foreign trade logs and not both.
  • Provides protection against exchange rate fluctuations in investment portfolios.
  • Allows the holder to fix prices for import and export purposes.
  • Individual investors can trade over and above their foreign allocation.
  • Currency contracts traded on a regulated exchange eliminate counterparty risk.
  • Contracts are cash settled in Rands and no physical delivery of the foreign currency takes place.
  • Qualifying factors

  • No limits apply to individuals, foreigners or corporate entities.
  • South African pension funds, collective investment schemes, financial services providers and insurers are subject to their foreign portfolio allowances.
  • For all the details relating to qualifying factors, please speak to your broker.
  • How to get it

  • Contact a JSE Currency Derivatives Member​​​
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    Spire AwardsSpire Awards<img alt="" src="/events/PublishingImages/Spire_Awards_Banner_Events_widget_198x131.jpg" style="BORDER:0px solid;" />https://www.jse.co.za/events/spire-awards, /events/spire-awards10/26/2016 10:00:00 PM

     Useful Links

     

     

    Interest rate and Currency Derivatives Daily StatsInterest rate and Currency Derivatives Daily Statshttps://www.jse.co.za/downloadable-files?RequestNode=/YieldX/Dailystats, https://www.jse.co.za/downloadable-files?RequestNode=/YieldX/Dailystats
    MTM ReportsMTM Reportshttps://www.jse.co.za/downloadable-files?RequestNode=/YieldX/curfutures, https://www.jse.co.za/downloadable-files?RequestNode=/YieldX/curfutures
    Currency Futures Close outsCurrency Futures Close outshttps://www.jse.co.za/downloadable-files?RequestNode=/Currency_Futures_CloseOut, https://www.jse.co.za/downloadable-files?RequestNode=/Currency_Futures_CloseOut
    Currency Derivatives Margin CalculatorCurrency Derivatives Margin Calculatorhttp://margincalculator.jse.co.za/irc/margincalculator.aspx, http://margincalculator.jse.co.za/irc/margincalculator.aspx

     Contact Specifications

     

     

    JSE African Currencies Fact SheetJSE African Currencies Fact Sheethttps://www.jse.co.za/content/JSEContractSpecificationItems/JSE African Currencies Fact Sheet.pdfpdf
    Kenyan Shilling Rand Currency Futures Contract SpecKenyan Shilling Rand Currency Futures Contract Spechttps://www.jse.co.za/content/JSEContractSpecificationItems/KenyanShillingRandCurrencyFuturesContractSpecMarketNotice.pdfpdf
    Nigerian Naira Rand Currency Futures Contract SpecNigerian Naira Rand Currency Futures Contract Spechttps://www.jse.co.za/content/JSEContractSpecificationItems/NigerianNairaRandCurrencyFuturesContractSpec.pdfpdf
    Botswana Pula Contract SpecificationBotswana Pula Contract Specificationhttps://www.jse.co.za/content/JSEContractSpecificationItems/Currency Derivatives/Standard Contract Specifications/BotswanaPulaContractSpecification.pdfpdf

     Related Documents

     

     

    Botswana Pula Contract SpecificationBotswana Pula Contract Specificationhttps://www.jse.co.za/content/JSEContractSpecificationItems/Currency Derivatives/Standard Contract Specifications/BotswanaPulaContractSpecification.pdfpdf
    Nigerian Naira.Rand Currency FuturesNigerian Naira.Rand Currency Futureshttps://www.jse.co.za/content/JSEContractSpecificationItems/Currency Derivatives/Standard Contract Specifications/NigerianNairaRandCurrencyFutures.pdfpdf
    Zambian Kwacha Rand Currency FuturesZambian Kwacha Rand Currency Futureshttps://www.jse.co.za/content/JSEContractSpecificationItems/Currency Derivatives/Standard Contract Specifications/ZambianKwachaRandCurrencyFutures.pdfpdf
    Kenyan Shilling Rand Currency FuturesKenyan Shilling Rand Currency Futureshttps://www.jse.co.za/content/JSEContractSpecificationItems/Currency Derivatives/Standard Contract Specifications/KenyanShillingRandCurrencyFutures.pdfpdf
    Currency Derivatives Membership list - Jan 2016Currency Derivatives Membership list - Jan 2016https://www.jse.co.za/content/JSEContactListItems/Currency Derivatives Membership list - Jan 2016.xlsxls