Johannesburg Stock Exchange Adds Silver And Platinum Commodities To Quanto Futures Product Range

The Johannesburg Stock Exchange (JSE) has again expanded its commodities product range by adding silver and platinum quanto futures to its existing gold, copper and Brent crude Quanto Futures which were launched earlier this year. 
 
A Quanto Future, a derivative instrument that in this case is a rand denominated commodity investment product that delivers the same payoff as a pure dollar denominated commodity investment, enables investors to gain exposure to the foreign underlying commodity whilst not being exposed to the influence of the dollar-rand exchange rate. This simplifies the investment decision and allows for focus on the returns of the underlying commodity only.
The JSE has partnered with Rand Merchant Bank (RMB) as the initial market maker with the commodities referenced as part of the JSE’s existing licensing agreement with the CME Group. 
 
Chris Sturgess, Director of the Commodities Division at the JSE says, “We have seen keen interest expressed in the new Quanto Futures  we offer and by adding silver and platinum to the product offering, we continue to  provide derivative market participates with opportunities to easily access the international commodities markets.”