JSE launches new IRS futures product
02 September 2015 Johannesburg
Image: Shutterstock
The Johannesburg Stock Exchange (JSE), Africa’s largest marketplace, launched JSE Eris interest rate swap (IRS) futures, last week.
The new IRS futures is based on the Johannesburg Interbank Agreed Rate (JIBAR) and operate in South African rand.
The offering will be available for trading by all registered interest rate market members and their clients and will be cleared through JSE Clear.
It follows the standard South African swap market conventions while using the Eris Methodology, allowing the contracts to replicate the cash flows of over-the-counter swaps.
Warren Geers, head of interest rates and currencies at the JSE, said: "Bringing this product to market has been a collaborative effort between us, our clients and our partnership with Eris.”
“After significant engagement with market participants we took a global product and modified it to make it a truly South African product relevant to the South African market needs."
The JSE has stated it will make appropriate pricing alignment as the product gathers more trading momentum.
The JSE expects trading of the IRS futures to grow in the last quarter of 2015 as clients are in the process of ensuring their systems are equipped to start trading the new Eris product.
The new IRS futures is based on the Johannesburg Interbank Agreed Rate (JIBAR) and operate in South African rand.
The offering will be available for trading by all registered interest rate market members and their clients and will be cleared through JSE Clear.
It follows the standard South African swap market conventions while using the Eris Methodology, allowing the contracts to replicate the cash flows of over-the-counter swaps.
Warren Geers, head of interest rates and currencies at the JSE, said: "Bringing this product to market has been a collaborative effort between us, our clients and our partnership with Eris.”
“After significant engagement with market participants we took a global product and modified it to make it a truly South African product relevant to the South African market needs."
The JSE has stated it will make appropriate pricing alignment as the product gathers more trading momentum.
The JSE expects trading of the IRS futures to grow in the last quarter of 2015 as clients are in the process of ensuring their systems are equipped to start trading the new Eris product.
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