Equity Derivatives Market

The Equity Derivatives Market, formerly Safex, was established in 1988 to provide a secure and efficient on-exchange market for trading Derivatives in South Africa. Today the market provides professional traders and private investors with a platform for trading Futures, Exchange Traded CFDs, Options and other sophisticated Derivatives Instruments in a liquid and transparent environment. The regular administration of margins prevents participants from accumulating large unpaid losses, which could impact on the financial position of other market users (systemic risk). In addition, all contracts are cleared by the JSE Clear clearing house which reduces the credit risk from a traditional over the counter transaction.

  • More than 1000 Derivatives Contracts offered.
  • Standardised and bespoke contracts available.
  • Physically and cash settled contracts available.
  • High market activity from individual and institutional investors as well as hedge funds.
  • Electronic central order book enhances transparency and liquidity.
  • Aggregation of trade activity creates competition for the best price.

 

Variation Margin

Unlike the cash market where your profit or loss is only realised once you sell the instrument, JSE Equity Derivatives pay the profit or loss on a daily basis. This payment is known as variation margin and is equal to the difference in the value of the Derivative from day to day.

Close Out

All JSE equity derivatives have close out dates on which the contract expires. These dates happen quarterly at 12h00 on the third Thursday of March, June, September & December. Close out prices are determined by an auction process for JSE listed equities and the following link will allow you to watch these auctions live:

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Clearing and settlement

Trading on a formal exchange that connects buyers and sellers achieves transparent price discovery. All transactions are cleared through JSE Clear which adheres to strict management standards. The risk management standards adopted by JSE Clear are in line with international requirements for central counterparties. The main function of JSE Clear is to reduce counterparty credit risk in the exchange traded derivative market in South Africa.

Click here for more information.


Disclaimer
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Interim ResultsInterim Resultshttps://www.jse.co.za/articles/interim-results, https://www.jse.co.za/articles/interim-results8/11/2016 10:00:00 PM
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MSCI Methodology MSCI Methodology http://www.msci.com/products/indexes/country_and_regional/em/methodology.html, http://www.msci.com/products/indexes/country_and_regional/em/methodology.html
Market Notices and CircularsMarket Notices and Circularshttps://www.jse.co.za/redirects/market-notices-and-circulars, /redirects/market-notices-and-circulars
Pricing and statisticsPricing and statisticshttps://www.jse.co.za/downloadable-files?RequestNode=/Safex, https://www.jse.co.za/downloadable-files?RequestNode=/Safex
Risk ManagementRisk Managementhttps://www.jse.co.za/services/post-trade-services/risk-management, https://www.jse.co.za/services/post-trade-services/risk-management
Monthly statisticsMonthly statisticshttps://www.jse.co.za/downloadable-files?RequestNode=/Safex/EDM_Monthly_Stats, https://www.jse.co.za/downloadable-files?RequestNode=/Safex/EDM_Monthly_Stats
Portfolio Margin CalculatorPortfolio Margin Calculatorhttp://margincalculator.jse.co.za/EDM/MarginCalculator.aspx, Portfolio Margin Calculator
JSE Modified Black Scholes CalculatorJSE Modified Black Scholes Calculatorhttps://www.jse.co.za/content/JSECalculatorsItems/JSE%20Modified%20Black%20Scholes%20Calculator.xlsm, JSE Modified Black Scholes Calculator
Advisory Minutes Advisory Minutes https://www.jse.co.za/trade/advisory-minutes, /trade/advisory-minutes
All contract detailsAll contract detailshttps://www.jse.co.za/_layouts/15/DownloadHandler.ashx?FileName=/Safex/All Contract Details.xls, https://www.jse.co.za/_layouts/15/DownloadHandler.ashx?FileName=/Safex/All Contract Details.xls

 

 

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IDX Liquidity ProvidersIDX Liquidity Providershttps://www.jse.co.za/content/JSEBrochureItems/IDX Liquidity Providers.pdfpdf
Equity Derivatives Market Price ListEquity Derivatives Market Price Listhttps://www.jse.co.za/content/JSEPricingItems/EDMPriceList.pdfpdf
NoteF6977NoteF6977https://www.jse.co.za/content/JSENoticesandCircularsItems/Equity Derivatives/2014/NoteF6977.pdfpdf
NoteF6978NoteF6978https://www.jse.co.za/content/JSENoticesandCircularsItems/Equity Derivatives/2014/NoteF6978.pdfpdf
NoteF6979NoteF6979https://www.jse.co.za/content/JSENoticesandCircularsItems/Equity Derivatives/2014/NoteF6979.pdfpdf
NoteF6982NoteF6982https://www.jse.co.za/content/JSENoticesandCircularsItems/Equity Derivatives/2014/NoteF6982.pdfpdf
NoteF6984NoteF6984https://www.jse.co.za/content/JSENoticesandCircularsItems/Equity Derivatives/2014/NoteF6984.pdfpdf
NoteF6980NoteF6980https://www.jse.co.za/content/JSENoticesandCircularsItems/Equity Derivatives/2014/NoteF6980.pdfpdf