JSE powers exotic derivatives offering with SuperDerivatives market data

Johannesburg & London - 23 May 2011

SuperDerivatives (SD), the derivatives benchmark and multi-asset front office system, announced today that it will provide the market data to power the Johannesburg Stock Exchange’s (JSE) new exotic currency options offering, namely the ‘any-day expiry’ contracts.

In response to growing demand from a number of South African banks, the JSE will be launching a set of exotic currency products. These derivatives give investors the advantages of listed derivatives with the flexibility of over-the-counter contracts. Investors can negotiate the terms of an option contract, choosing the underlying asset as well as the expiry date.

The JSE will feed in SD’s independent market data to enable accurate calculation of daily closing prices, ensuring investors are equipped with the most accurate information to inform trading decisions.

Warren Geers, General Manager of Trading at the JSE, said: “As the South African listed derivatives market develops and matures, investors are seeking more complex structures, such as non-vanilla/standardised options, in order to hedge their specific risk profiles. These exotic products are often illiquid and difficult to price – however with SuperDerivatives’ market data we can be sure that investors know the true market value of the derivatives they trade with us. Accurate data is an essential component of increasing transparency and improving confidence and liquidity in this market overall.”

Maria Johansson, Regional Sales Manager UK and Africa at SD added: “Our data is sourced from trading desks at close to a hundred global and local interdealer brokers, market makers, exchanges and trading platforms as well as top data aggregators. These true live market rates are then acid tested in real-time in the marketplace by active traders.

“Our insistence on broad market data contribution means that pricing information is truly neutral and unbiased, ensuring market participants trading on the JSE will have access to the most accurate information at all times.”

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