Business: JSE June Can-Do Contract Futures Break Record
Recent Gauteng Business News
Can-Do Futures trading volumes for June were 1,371,216 up from 196,296 in June 2008. The value of these trades was more than R2.6 billion.
Can-Do Futures are JSE derivative instruments which give institutional investors the risk-management advantages of listed derivatives with the flexibility of Over the Counter (OTC) contracts. Post the fall-out of the 2008 financial crisis, US and European regulators have spoken of certain OTC derivatives moving on-exchange where risk management processes are generally more effective. However as on-exchange products are usually standardized, clients with specific requirements sometimes find that their hedging needs are not met fully by on-exchange products.
“Can-Do derivatives, developed by the JSE in 2007, solve this dilemma which may explain the rising popularity of these products among institutional investors,” comments Allan Thomson, Head of Derivatives Trading at the JSE. “The rise in demand for Can-Do derivatives is due to the JSE’s innovative ability to create unique, tailor-made products in response to specific client needs. The market still requires innovative products; due to the global financial crisis they also require additional regulation, oversight and security which these on-exchange instruments give them.”
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