South Africa’s derivatives markets are growing at a remarkable rate, helped by retail interest in single stock futures. But as Vishala Sri-Pathma finds, the real challenge is trying to convey the efficiencies that futures and options markets offer to the neighbouring countries, where infrastructure is less developed.
Despite the national background of a turbulent political and economic position, South Africa’s stock and futures exchanges are models for the region in terms of probity, sophistication, investor understanding and liquidity. The exchanges match international standards in virtually every respect.
The question now occupying the thoughts of the wider region of southern Africa is whether the South African model can be exported to neighbouring countries — and particularly whether they can offer the kind of services that the Johannesburg Stock Exchange (JSX) and the South African Futures Exchange (SAFEX) can provide.
The trouble is that the hurdles for these...