Beware of "JSE Investment" scams

The JSE Limited/ Johannesburg Stock Exchange (JSE) is aware of a several scams (on Telegram and WhatsApp) posing as authorised JSE investment schemes and/or using the names(s) of JSE Executives (including our CEO, Leila Fourie).

In these investment scams, potential investors are urged to deposit money into a bank account and promised quick and guaranteed returns on their investment. These types of groups are not authorised by the JSE and the investments referred to are not authorised or endorsed by the JSE or any members of the JSE Executive. The JSE does not recruit investors in this manner.

The only way to invest on the JSE is via an authorised JSE stockbroker. A list of stockbrokers can be found on www.jse.co.za and then click on 'find a stockbroker' and you will find a list of stockbrokers in your area who will help you to open an account and you can begin your investment journey with the JSE.

Should you suspect a false investment scam group, please report these to the JSE at [email protected].

Platinum Futures and Options are Derivatives Contracts which give investors exposure to the international price of platinum as determined by the New York Mercantile Exchange (NYMEX) through its COMEX division, a subsidiary of the CME Group. Platinum Futures contracts give investors the right to buy or sell at a fixed price on a future date. These contracts are traded by hedgers as well as speculators who assume the price risk that hedgers try to avoid in return for a chance to profit from a favourable price movement​​. Contracts are cash settled in rands and can be easily accessed via JSE Commodity Derivative members.

Who is this for?

Platinum is one of the rarest and most highly sought after metals because of its unique chemical and physical qualities. Commercial consumers and producers of platinum can manage platinum price risk by purchasing and selling Platinum Futures and Options. Producers can employ a short hedge while end users can utilise a long hedge. Speculators also use these contracts with a view to profiting on short term movements in the Futures Contract price. Investors can use the product to further diversify and enhance their investment portfolios.

Features

  • Extensive trading opportunities;
  • Using Options alone or in combination with Futures, a wide range of strategies can be implemented to cater to a specific risk profile, investment time horizon, cost consideration and outlook on underlying volatility;
  • Enables effective price risk management and evaluation of current and future world supply and demand;
  • Enables identification of short and long term price and volatility patterns;
  • Hedge or gain exposure based on expectation of directional price, spread movement or volatility;
  • Suitable as a portfolio diversification element;
  • Easy access to the international market with a contract traded in rands;
  • Because of platinum’s importance as an industrial material, its relatively low production and concentration among a few suppliers and its sensitivity to global events, prices can be volatile; this appeals to some investors but presents significant downside risk;
  • Given the risk for significant loss, investing in Platinum Metal Futures and Options is best left to experienced investors. Less aggressive platinum investors could consider platinum ETFs or ETNs.

How to get it

To access this product, investors need to register as a client with an authorised member firm, deposit the required initial margin and sell or buy according to their needs.

Qualifying factors

  • No limits apply to individuals, foreigners or corporate entities;
  • Pension funds and long term insurance companies subject to their 25% foreign allocation limits;
  • Asset managers and registered collective investment schemes subject to their 35% foreign allocation limits;
  • For the full details relating to qualifying factors, speak to your broker.