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 | Standard Bank: Market maker in the JSE's newly launched currency options |  |  |
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19 September 2008
Standard Bank's foreign exchange division (corporate and investment banking) has launched its currency options on futures (currency options) offering on the JSE's interest and currency platform, Yield X.
Currency options have been launched in order to enhance the currency product offerings available to the broader investment community. Standard Bank is a market maker in the options market and aims to actively fuel liquidity and the development of the market.
Currency options is a derivative financial instrument where the owner has the right, but not the obligation, to trade the performance of an exchange rate for a specified time into the future. A currency option is a way for sophisticated currency dealers to assist businesses in minimising risk.
"Standard Bank Global Foreign Exchange has always looked beyond the obvious to take advantage of the opportunities within risk. Option contracts are a key product for those investors who wish to minimise the risk of changes in exchange rates," says Richard de Roos, Director and Head of Foreign Exchange, Standard Bank Corporate and Investment Banking.
"The JSE currency futures and now currency options represent a tremendous development for the South African financial market," adds de Roos.
Since the South African Reserve Bank (SARB) eliminated exchange controls for individual and corporate clients, the JSE acts as an external regulator which assists with the reporting responsibilities of all deals done to SARB. Additionally, corporates are not required to obtain pre-approval nor will they be required to report their trades to SARB.
"Currency options may present an additional hedging alternative for clients and the market at large and may provide more solutions or strategies to investors to hedge but also to reduce the cost involved," concludes de Roos.
For more information, contact:
Richard de Roos
Director and Head of Foreign Exchange, Standard Bank Corporate and Investment Banking
Telephone: (011) 378 7903
Virginia Magapatona
Media Relations Manager, Standard Bank Corporate and Investment Banking
Telephone: (011) 631 3082
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