Johannesburg Stock Exchange marks anniversary of CBOT futures and options contract

Johannesburg Stock Exchange marks anniversary of CBOT futures and options contract

January 2010 marked the anniversary of the Johannesburg Stock Exchange (JSE)’s introduction of the CBOT Corn Futures and Options contracts in partnership with the CME Group. The contracts allow South African participants access to international corn markets in local currency without impacting the South African foreign exchange allowances. 

The South African market responded well to the contracts. By end-January 2010 a total of 15,651 futures – representing more than a tenth of South Africa’s annual production – had traded. In addition to positive market reception, in November 2009 the JSE and the CME Group won ‘Best innovation by an exchange in the field of product design at the Future & Options (FOW) Awards. 

The cash settled commodity contract which is accessed through the JSE’s trading platform, complements the existing South African wheat, maize, sunflower seed and soybean deliverable contracts. 

In addition to the Chicago Corn contract, the JSE Commodity Derivatives Division recently introduced futures on gold, platinum and crude oil, relying on the markets within the CME Group to cash settle these new products.