JSE in global derivatives top 10

19 September 2008

The Futures Industry Association (FIA) has ranked South Africa’s JSE the 10th largest derivatives exchange in the world by number of contracts traded.

This ranking, published in a recent survey by Futures Industry – the official international publication of the FIA – reveals that the JSE traded over 216-million contracts during the first six months of 2008, a 61% growth over the corresponding period in 2007.

“This is an incredible achievement for the JSE – we are thrilled to be ranked among the global best,” JSE derivatives trading head Allan Thomson said in a statement this week.

“The rapid growth of single stock futures and currency futures, as well as options, have all contributed to the overall success of the JSE derivatives market.”

In August, the JSE unveiled a new equity derivatives trading system specifically designed for the South African market, enabling new functionality and greater flexibility for local brokers, fund managers, market makers and other institutional investors.

In July, the JSE listed and began trading on the first ever variance future on the exchange, which, with increasing demand, could be the forerunner to an entirely new asset class at the exchange.

In an effort to offer its clients more investment options to choose from, the JSE also launched the Shariah Top 40 Index in partnership with the FTSE Group in the same month, allowing for interested investors – including South Africa’s 850 000-strong Muslim community – to invest in Shariah-compliant companies.

In July 2007, the JSE overtook the National Stock Exchange of India as the largest operator of single stock futures (SSF) market in the world in terms of volumes of contracts traded.

In terms of the value of trades, the JSE came in at sixth position, after the National Stock Exchange of India, the Euronext.liffe, Eurex, Borsa Italiana and MEFF.

SAinfo reporter

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