Register now for Fin24 Dashboard and get access to portfolios, watchlists, financial comparison tools, and a whole lot more to help you achieve your financial goals.

Data provided by McGregor BFA
All data is delayed
Loading...
Where am I? Home
 
Prices are delayed by 15min.
Join the Fin24.com conversation about JSE-listed stock by using every time you tweet.

Platinum options traded on JSE for first time

Jan 09 2012 15:32 I-Net Bridge

Company Data

Jse [JSE : JSE]

Last traded R73.78
Change R0.42
% Change 0.57%
Cumulative volume 215,578
Market cap R6.41bn

Last Updated: 28/05/2012 at 17:43. Prices are delayed by 15 minutes. Source: McGregor BFA

 

Related Articles

JSE opens way for Europe electronic trading

JSE introduces new currency contracts

Investment punts that raise questions

JSE aims to speed up trading

JSE earnings rise 24%

How to diversify shariah investments?

 

Top Stories

Cell C move sparks price war

May 27 2012 11:21

There's a price war raging between South Africa's cellphone networks after Cell C lowered the rates of its prepaid calls by more than 34%.

MyCiti buses running at a loss

May 28 2012 07:53

The City of Cape Town has spent R175m running the Myciti bus service since the Soccer World Cup compared to an income of R35m, a report says.

Another golf estate victim

May 27 2012 13:09

The oversupply of golf estates has claimed another victim.

 
Share Share line Print
Johannesburg - The JSE [JSE:JSE] has seen 800 platinum option contracts traded on the Safex commodity derivative's global market late last week, the first time that the JSE has seen this trading strategy used by market participants.

Chris Sturgess, general manager of the commodities division at the JSE, says: "To date the trade has been solely in futures, but I'm pleased to see the first interest in using options by a hedge fund. Options are versatile instruments that in their simplest form enable traders to acquire a type of insurance. Buyers pay a premium to reduce their risk and have access to upside potential. This is a trend we are optimistic will increase."

To date, trade in platinum futures has been increasing steadily with just over 72 000 ounces traded last year to the value of R923m. Open interest is at 11 400 ounces and growing.

One standardised contract represents 10 ounces of platinum with the contract traded and cash settled in rand off the international New York Mercantile Exchange market.

Investors with an appetite for precious metals were first afforded the opportunity to invest in platinum as a commodity listed on Safex's commodity derivatives market in October 2010, without contravening any mineral or exchange control laws. This was due to an extension of a licensing agreement that the JSE holds with the Chicago Mercantile Exchange Group (CME), the world's largest derivatives market.

In addition to platinum, clients registered on the Safex derivative markets can get exposure to the international gold, copper, silver and West Texas Intermediate crude oil markets.

The JSE first collaborated with the CME Group in 2009, to introduce rand cash-settled commodity derivatives referencing their corn market as benchmark US dollar prices.

 
 
Comment on this story
0 comments
Add your comment
Comment 0 characters remaining
It pays to know the cost and what you’re getting in return
May 28 2012 09:33

Investors may not have a clue what they’re paying their money managers or they type of service they’re getting, or, whether they can actually negotiate lower fees. (Reuters)

Sasha

"In the short term this is true, Greece will dominate the headlines on a day to day basis, until their next elections when there would be some clarity to answer the question, "What next for Greece?" Amazingly everyone except the politicians seem to be lining themselves up for worst case scenario, b... Read their blog...

Recently updated
Podcasts
The Sishen saga

Legal expert Peter Leon on the increasingly complex legal wrangle over the Sishen Iron Ore mine. Time: 8:17 Listen Here...

Before you list

Is the clarion call of the JSE calling? Listen to Fin24’s expert panel discussion before you list your small business. Time: 17:29

Compare and Buy

Compare and apply for hundreds of financial products from many suppliers.

Credit cards Medical aid Current accounts Think Money

Money Clinic

Money Clinic Do you have a question about your finances? We'll get an expert opinion.
Click here...

Loading...