Dividend Neutral Stock Futures

Dividend Neutral Stock Futures (DNSFs) are Derivatives Instruments that give investors exposure to the price movements of an underlying Share while stripping out inherent risk in dividend assumptions and Futures pricing. The contract brings together a Single Stock Futures (SSFs) Contract and a Dividend Futures Contract.

Who is this for?

This product is ideal for market participants who want to remove dividend assumption risk, including hedgers seeking to protect an existing Share portfolio and speculators hoping to make a profit on short-term movements in the Futures Contract price, including professional and private investors.

Features

  • Eliminate the risks associated with assumed dividends.
  • The JSE’s clearing house guarantee and regulatory framework mean that investing through the JSE removes counterparty risk.
  • Futures are capital-efficient way to gain exposure to Shares.
  • Lower brokerage fees than trading in the underlying Shares.
  • Contracts are liquid and easily traded.
  • Provide an opportunity to protect and hedge Share portfolios.
  • Although the dividend risk is eliminated, you still assume the risk associated with gearing around SSF contracts. Gearing offers significant returns, but can also result in significant losses if the market moves against an investor’s position. SSFs are not capital protected and investors may lose (or make) more money than their initial margins. Only experienced investors or investors aided by experienced advisors should participate in this market.

How to get Dividend Neutral Stock Futures (DNSFs)

To trade, register as a client with an authorised JSE Equity Derivatives member.

 

 

 

 

 

 

Product SpecificationProduct Specificationhttps://www.jse.co.za/content/JSESpecificationsItems/ProductSpecification.pdfpdf
Dividend Neutral Stock Futures ExampleDividend Neutral Stock Futures Examplehttps://www.jse.co.za/content/JSEEducationItems/DividendNeutralStockFuturesExample.pdfpdf
Dividend Neutrals Stock Futures (DNSF) OverviewDividend Neutrals Stock Futures (DNSF) Overviewhttps://www.jse.co.za/content/JSEEducationItems/DividendNeutralsStockFutures(DNSF)Overview.pdfpdf

Contact Us