This market, formerly known as Safex, was established in 1988 to provide a secure and efficient on-exchange market for trading derivatives in South Africa. Clients Use the JSE’s Equity Derivatives Market to trade index futures and options, single stock futures and options, exchange-traded contracts for difference (CFDs), and other sophisticated derivatives in a liquid and transparent environment.
Gain access to the following:
- More than 1 000 derivatives contracts.
- Standardised and bespoke contracts.
- Physically settled and cash-settled contracts.
- High market activity from individual and institutional investors and hedge funds.
- An electronic central order book, which enhances transparency and liquidity.
- Aggregation of trade activity, which creates competition for the best price.
- A variation margin, gearing (initial margin).
Regular margin administration prevents participants from accumulating large unpaid losses, which could impact the financial position of other market users and introduce systemic risk. In addition, all contracts are cleared by JSE Clear, reducing credit risk.
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 daily. This payment is known as the variation margin, and is equal to the difference in the value of the derivative from day to day.
All JSE equity derivatives have quarterly close-out dates, on which the contracts expire: At 12:00 on the third Thursday of March, June, September and December. During the week of close-out, an admin period extension is implemented to accommodate high volumes for an extra 30 minutes (18:30-19:00). An auction process for JSE-listed equities determines close-out prices.
Clearing and settlement
All transactions are cleared through JSE Clear, which adheres to strict management standards and achieves transparent price discovery. JSE Clear’s risk management standards align with international requirements for central counterparties. The main function of JSE Clear is to reduce counterparty credit risk in South Africa’s exchange-traded derivative market.
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