JSE introduces a Diesel Hedge Contract

The JSE has added Diesel Hedge Futures and Options (DSEL) to its range of commodity derivatives. The diesel contracts will allow investors to protect themselves against movements in the local diesel price. The contracts will be traded in rand per liter and cash settled.

The contracts provide a hedge against movements in the local pump price of diesel through following the price of European Gasoil futures, as traded on the New York Mercantile Exchange (NYMEX). Gasoil is refined crude oil product and is close to diesel in the refinery process.