JSE Expands Quanto Futures Range To Include Nine New Commodities


Market participants will be able to obtain exposure to nine new foreign-referenced soft and hard commodities thanks to the JSE’s expansion of its Quanto Futures range. Products to be introduced under license from the CME Group are heating oil, gasoline, natural gas, palladium, sugar, cotton, cocoa, coffee and corn.

With the exception of corn, this is the first time South African investors can gain exposure to these commodities in Rands without using their foreign allowance allocations. Products track the pricing of international commodities markets NYMEX and the Chicago Board of Trade. Chris Sturgess, Director of the Commodity Derivatives at the JSE says “With the current Rand Dollar volatility Quanto Futures have been well-received by our market with much demand for new products to be listed. The JSE is very pleased to once again work with the CME Group to bring international commodities markets closer to South African investors.”

A Quanto Future is a rand denominated commodity derivative that enables investors to gain exposure to the price movements in the underlying foreign commodity while shielding them from fluctuations in the Rand Dollar exchange rate.