Podcast Beta
Questions and Answers
Who is responsible for determining the contract specifications of IRC securities?
What action can the JSE NOT take regarding futures and option contracts?
In what scenario must the JSE specify an expiry date for a futures or option contract?
What is a consequence of the JSE suspending an IRC security from its list?
Signup and view all the answers
What types of derivatives are included in the IRC securities as stated?
Signup and view all the answers
What is required from the JSE when they add or remove a futures or option contract?
Signup and view all the answers
What type of public communication may the JSE employ related to IRC securities?
Signup and view all the answers
What is one of the measures the JSE may take when determining contract specifications of IRC securities?
Signup and view all the answers
What is one of the main advantages of using the JSE's Interest Rate Derivatives Market?
Signup and view all the answers
Which of the following is NOT listed as an Interest Rate Derivative in the JSE's market?
Signup and view all the answers
Who can actively participate in trading Interest Rate Derivatives according to the outlined requirements?
Signup and view all the answers
What type of surveillance does the JSE conduct on Interest Rate Derivative transactions?
Signup and view all the answers
In what way can traders execute trades in the JSE's Interest Rate Derivatives Market?
Signup and view all the answers
Which financial instruments fall under the category of Short Term Interest Rate Futures (STIRs) as stated by the JSE?
Signup and view all the answers
What does the JSE require from members who wish to trade within the Interest Rate Derivatives Market?
Signup and view all the answers
What kind of derivatives can be found on the JSE within the category of Long Term Interest Rate Futures (LTIRs)?
Signup and view all the answers
What may the JSE do with futures and option contracts in relation to their listing?
Signup and view all the answers
What must the JSE do when it imposes new conditions on futures and option contracts?
Signup and view all the answers
When may the JSE publish conclusions or findings regarding an investigation?
Signup and view all the answers
Which factor is NOT considered by the JSE when determining contract specifications for IRC securities?
Signup and view all the answers
What is a potential outcome of the JSE suspending an IRC security?
Signup and view all the answers
What does the JSE specify when the expiry date of a futures or option contract exceeds one year?
Signup and view all the answers
What type of communication may the JSE utilize to inform the public about changes to IRC securities?
Signup and view all the answers
Which of the following actions regarding the IRC securities is at the discretion of the JSE?
Signup and view all the answers
What reduces counterparty credit risk in the JSE's Interest Rate Derivatives Market?
Signup and view all the answers
Which of these is a requirement for market participants looking to trade in the Interest Rate Derivatives Market?
Signup and view all the answers
What is included in the list of Interest Rate Derivatives according to JSE guidelines?
Signup and view all the answers
Which aspect of trading in the Interest Rate Derivatives Market provides functionality for booking trades?
Signup and view all the answers
Who can act as a client to trade in the Interest Rate Derivatives Market?
Signup and view all the answers
Which of the following is NOT a listed interest rate derivative on the JSE?
Signup and view all the answers
What primary action is taken by the JSE to ensure fair pricing of Interest Rate Derivative transactions?
Signup and view all the answers
What type of market members can potentially participate in the JSE's Interest Rate Derivatives Market?
Signup and view all the answers
Study Notes
IRC Securities Overview
- JSE maintains the list of IRC securities under section 11(8)(a) of the Financial Markets Act.
- Interest rate derivatives available for trading include various futures and options on government and state-owned company debt.
Types of Interest Rate Derivatives
- Futures and Options: Based on government debt and State-owned company debt, including Bond Futures, Bond Options, and Index Futures.
- Short-term Interest Rate Futures (STIRs): Includes Jibar Futures.
- Long-term Interest Rate Futures (LTIRs): Includes Swap Futures.
Trading Execution and Risk Management
- Interest Rate Derivatives can be booked through both on-screen and off-screen methods.
- All positions are margined and cleared by the JSE Clear, minimizing counterparty credit risk.
- Real-time transaction surveillance is conducted by the JSE regulatory team to ensure compliance and fair pricing.
Market Participation
- Active trading participation is open to individuals or entities that comply with JSE's market requirements.
- Clients may trade through members who are compliant, such as brokers, banks, and asset managers.
Contract Specifications
- JSE determines contract specifications for IRC securities, which may change based on market research and member feedback.
- Specific expiry months for futures and options contracts are decided and published by the JSE.
Listing and Adjustments
- JSE can add, remove, or suspend futures and options from the list of IRC securities as necessary.
- Notification of any changes or conditions regarding contracts is provided to trading members by the JSE.
Investigations and Notifications
- The JSE has the authority to remove or suspend IRC securities and to investigate dealings.
- Reasons for actions taken regarding listing status or investigations are published, ensuring transparency.
IRC Securities Overview
- JSE maintains the list of IRC securities under section 11(8)(a) of the Financial Markets Act.
- Interest rate derivatives available for trading include various futures and options on government and state-owned company debt.
Types of Interest Rate Derivatives
- Futures and Options: Based on government debt and State-owned company debt, including Bond Futures, Bond Options, and Index Futures.
- Short-term Interest Rate Futures (STIRs): Includes Jibar Futures.
- Long-term Interest Rate Futures (LTIRs): Includes Swap Futures.
Trading Execution and Risk Management
- Interest Rate Derivatives can be booked through both on-screen and off-screen methods.
- All positions are margined and cleared by the JSE Clear, minimizing counterparty credit risk.
- Real-time transaction surveillance is conducted by the JSE regulatory team to ensure compliance and fair pricing.
Market Participation
- Active trading participation is open to individuals or entities that comply with JSE's market requirements.
- Clients may trade through members who are compliant, such as brokers, banks, and asset managers.
Contract Specifications
- JSE determines contract specifications for IRC securities, which may change based on market research and member feedback.
- Specific expiry months for futures and options contracts are decided and published by the JSE.
Listing and Adjustments
- JSE can add, remove, or suspend futures and options from the list of IRC securities as necessary.
- Notification of any changes or conditions regarding contracts is provided to trading members by the JSE.
Investigations and Notifications
- The JSE has the authority to remove or suspend IRC securities and to investigate dealings.
- Reasons for actions taken regarding listing status or investigations are published, ensuring transparency.
Studying That Suits You
Use AI to generate personalized quizzes and flashcards to suit your learning preferences.
Description
This quiz covers the list of IRC securities that can be traded on the IRC markets according to the IRC Rules. It includes various interest rate derivatives such as futures and options on government debt, as well as STIRs and LTIRs. Test your knowledge on the role of the JSE and the specifics of these financial instruments.