17 December 2009
South African investors can now trade two of the world’s most well-known IT names through the listing of Microsoft and Google single stock futures (SSF) on the JSE.
Like any other International Derivatives (IDX) products, retail investors can trade in these two American companies without using their R2-million foreign allowance.
“The listing of SSFs on these two IT stocks, as well as the present SSF listing on Apple, will allow South African investors to further diversify their portfolios,” said JSE derivatives trading director Allan Thomson in a statement this week.
Like the other international derivatives (IDX) listed on the JSE, these can be purchased through any JSE-registered broker in the same way one would purchase local derivatives products.
“This offers investors international exposure cost effectively on a trusted trading platform with none of the counter-party risk associated with over-the-counter trading,” the statement read.
The other IDX products trading on the JSE currently include blue chip companies such as Berkshire Hathaway, Bank of America, Nokia, LVMH Moet Hennessy Louis Vuitton, BP, Vodafone and GlaxoSmithKline.
While retail investors and corporate entities do not have any exchange control restrictions, institutional investors do have to comply with foreign portfolio regulations. Contracts are priced and settled in rands.
Global technology leaders
Well-known multi-national computer technology provider, Microsoft Corporation is the world’s leading computer technology provider and largest manufacturer of software products, including the Windows operating system and the Microsoft Office suite. The company is headquartered in Redmond, Washington and is listed on NASDAQ.
Launched in 1996, Google is a latter entrant to the computer technology field, but has taken the lead as the world’s most popular internet search tool. The company derives the major portion of its revenue from advertising related to its internet search, email, online mapping and social media services. Google has its headquarters in Mountain View, California and is listed on both NASDAQ and the London Stock Exchange.
Since the listing on Friday the 11 December, 13 009 contracts have been traded on Microsoft and 656 contracts on Google.
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