Podcast
Questions and Answers
What does the JSE use to reduce counterparty credit risk in Interest Rate Derivatives transactions?
What does the JSE use to reduce counterparty credit risk in Interest Rate Derivatives transactions?
- Exchange trade matching
- Real time surveillance
- On-screen trading only
- Margined and cleared positions (correct)
Which type of futures are included in the Short Term Interest Rate Futures category according to the JSE listing?
Which type of futures are included in the Short Term Interest Rate Futures category according to the JSE listing?
- Index Futures
- Bond Futures
- Swap Futures
- Jibar Futures (correct)
Which entities are eligible to become market participants in the Interest Rate Derivatives Market of the JSE?
Which entities are eligible to become market participants in the Interest Rate Derivatives Market of the JSE?
- Any individual without restrictions
- Only asset managers
- Brokers, banks, and asset managers complying with requirements (correct)
- Only government agencies
What are the Long Term Interest Rate Futures (LTIRs) specifically mentioned in the JSE's offerings?
What are the Long Term Interest Rate Futures (LTIRs) specifically mentioned in the JSE's offerings?
Which of the following is NOT listed as an interest rate derivative under the JSE's securities?
Which of the following is NOT listed as an interest rate derivative under the JSE's securities?
What method does the JSE employ for ensuring fair pricing in Interest Rate Derivative transactions?
What method does the JSE employ for ensuring fair pricing in Interest Rate Derivative transactions?
What facilitates the market participation in the Interest Rate Derivatives Market?
What facilitates the market participation in the Interest Rate Derivatives Market?
Which option represents a derivative listed under interest rate derivatives as per the JSE?
Which option represents a derivative listed under interest rate derivatives as per the JSE?
Who conducts the real-time surveillance of Interest Rate Derivative transactions at the JSE?
Who conducts the real-time surveillance of Interest Rate Derivative transactions at the JSE?
What is the primary purpose of listing securities on the IRC market?
What is the primary purpose of listing securities on the IRC market?
Who determines the contract specifications of interest rate derivatives and currency derivatives listed in the IRC securities?
Who determines the contract specifications of interest rate derivatives and currency derivatives listed in the IRC securities?
What is one of the actions the JSE may take regarding futures and option contracts?
What is one of the actions the JSE may take regarding futures and option contracts?
What must be specified by the JSE for futures or option contracts that have an expiry date longer than one year?
What must be specified by the JSE for futures or option contracts that have an expiry date longer than one year?
What condition is associated with the listing of IRC securities?
What condition is associated with the listing of IRC securities?
Which of the following can the JSE publish or authorize to publish regarding IRC securities?
Which of the following can the JSE publish or authorize to publish regarding IRC securities?
What can options contracts be traded based on?
What can options contracts be traded based on?
What type of contracts can the JSE suspend or amend conditions for?
What type of contracts can the JSE suspend or amend conditions for?
What must the JSE do before enforcing changes to futures and option contracts?
What must the JSE do before enforcing changes to futures and option contracts?
Which of the following is NOT a condition that JSE may notify the public about?
Which of the following is NOT a condition that JSE may notify the public about?
How does the JSE determine which expiry months to specify for futures and option contracts?
How does the JSE determine which expiry months to specify for futures and option contracts?
Which of the following is a function offered by the JSE's Interest Rate Derivatives Market?
Which of the following is a function offered by the JSE's Interest Rate Derivatives Market?
Which type of futures does the JSE categorize as Long Term Interest Rate Futures (LTIRs)?
Which type of futures does the JSE categorize as Long Term Interest Rate Futures (LTIRs)?
What is the role of the regulatory team at the JSE concerning Interest Rate Derivative transactions?
What is the role of the regulatory team at the JSE concerning Interest Rate Derivative transactions?
Which of the following describes a requirement for market participation in the JSE's Interest Rate Derivatives Market?
Which of the following describes a requirement for market participation in the JSE's Interest Rate Derivatives Market?
Which option best describes the types of entities eligible for market participation in the JSE's Interest Rate Derivatives Market?
Which option best describes the types of entities eligible for market participation in the JSE's Interest Rate Derivatives Market?
What does the JSE ensure through its clearinghouse for Interest Rate Derivative positions?
What does the JSE ensure through its clearinghouse for Interest Rate Derivative positions?
Which category includes STIRs according to the JSE's offerings?
Which category includes STIRs according to the JSE's offerings?
What must both on-screen and off-screen trades in interest rate derivatives fulfill?
What must both on-screen and off-screen trades in interest rate derivatives fulfill?
Which of the following derivatives is included in the JSE's offerings for futures and options?
Which of the following derivatives is included in the JSE's offerings for futures and options?
What is a required action by the JSE before it can remove or suspend a futures or option contract from the list of IRC securities?
What is a required action by the JSE before it can remove or suspend a futures or option contract from the list of IRC securities?
Which of the following rights does the JSE have regarding futures and option contracts?
Which of the following rights does the JSE have regarding futures and option contracts?
In what situation must the JSE specify an expiry date for futures or option contracts?
In what situation must the JSE specify an expiry date for futures or option contracts?
What is the JSE required to do if it removes an IRC security from the list?
What is the JSE required to do if it removes an IRC security from the list?
How does the JSE determine the contract specifications for IRC securities?
How does the JSE determine the contract specifications for IRC securities?
What may occur if the JSE suspends the listing of an IRC security?
What may occur if the JSE suspends the listing of an IRC security?
What guideline governs the JSE's publication regarding IRC securities?
What guideline governs the JSE's publication regarding IRC securities?
What must happen before trading of options contracts is permitted?
What must happen before trading of options contracts is permitted?
What is the role of the JSE regarding market investigations of IRC securities?
What is the role of the JSE regarding market investigations of IRC securities?
Which of the following factors does NOT influence the contract specifications of IRC securities?
Which of the following factors does NOT influence the contract specifications of IRC securities?
The JSE's Interest Rate Derivatives Market allows for only off-screen trades.
The JSE's Interest Rate Derivatives Market allows for only off-screen trades.
The clearinghouse of the JSE is responsible for margining and clearing Interest Rate Derivative positions.
The clearinghouse of the JSE is responsible for margining and clearing Interest Rate Derivative positions.
Membership in the JSE's Interest Rate Derivatives Market is restricted to government entities only.
Membership in the JSE's Interest Rate Derivatives Market is restricted to government entities only.
Short Term Interest Rate Futures (STIRs) include Jibar Futures.
Short Term Interest Rate Futures (STIRs) include Jibar Futures.
The JSE's regulatory team performs non-real time surveillance of Interest Rate Derivative transactions.
The JSE's regulatory team performs non-real time surveillance of Interest Rate Derivative transactions.
Only specific stock exchanges can list interest rate derivatives, prohibiting the JSE from participating.
Only specific stock exchanges can list interest rate derivatives, prohibiting the JSE from participating.
The JSE allows market participants to trade based on both interest rates and currency derivatives.
The JSE allows market participants to trade based on both interest rates and currency derivatives.
Bond options are not included in the JSE's offerings of interest rate derivatives.
Bond options are not included in the JSE's offerings of interest rate derivatives.
The JSE is not responsible for ensuring compliance with its rules during Interest Rate Derivative transactions.
The JSE is not responsible for ensuring compliance with its rules during Interest Rate Derivative transactions.
LTIRs include options contracts on government debt securities.
LTIRs include options contracts on government debt securities.
The JSE determines contract specifications of IRC securities solely based on public surveys.
The JSE determines contract specifications of IRC securities solely based on public surveys.
Futures and option contracts on IRC securities can only be added to the list, without the possibility of removal.
Futures and option contracts on IRC securities can only be added to the list, without the possibility of removal.
The JSE is required to specify expiry dates for option contracts only if their expiry exceeds six months.
The JSE is required to specify expiry dates for option contracts only if their expiry exceeds six months.
The JSE has the right to suspend listings of IRC securities and publish findings from its investigations.
The JSE has the right to suspend listings of IRC securities and publish findings from its investigations.
Option contracts can be traded without consideration of the underlying futures contract's expiry month.
Option contracts can be traded without consideration of the underlying futures contract's expiry month.
The JSE must provide notification to trading members for any actions taken regarding futures and option contracts without stipulating a date.
The JSE must provide notification to trading members for any actions taken regarding futures and option contracts without stipulating a date.
The JSE automatically publishes the reasons for removing an IRC security without needing to investigate.
The JSE automatically publishes the reasons for removing an IRC security without needing to investigate.
The contract specifications for IRC securities are primarily determined by the market participants' opinions.
The contract specifications for IRC securities are primarily determined by the market participants' opinions.
The JSE can alter the conditions associated with futures and option contracts at any time without prior notice.
The JSE can alter the conditions associated with futures and option contracts at any time without prior notice.
The existence of conditions for the listing of IRC securities guarantees permanent listing.
The existence of conditions for the listing of IRC securities guarantees permanent listing.
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Study Notes
IRC Securities Overview
- JSE maintains a record of IRC securities under section 11(8)(a) of the Financial Markets Act.
- Interest rate derivatives offered include:
- Futures and options on government debt and state-owned company debt (Bond Futures, Bond Options, Index Futures).
- Short-Term Interest Rate (STIR) Futures, specifically Jibar Futures.
- Long-Term Interest Rate (LTIR) Futures, specifically Swap Futures.
Trading Facilities
- JSE's Interest Rate Derivatives Market provides on-screen and off-screen trade booking options.
- All exchange-traded Interest Rate Derivative positions are margined and settled by JSE Clear, reducing counterparty credit risk.
- Real-time transaction surveillance is conducted by JSE's regulatory team to ensure fair pricing and compliance.
Participant Eligibility
- Market participation is open to individuals or entities actively trading in Interest Rate Derivatives while complying with JSE's market requirements.
- Alternatively, clients can trade through members who meet the JSE’s regulatory standards, with member entities including brokers, banks, and asset managers.
Contract Specifications
- Specifications for interest rate and currency derivatives are set by the JSE Executive.
- JSE may conduct surveys, gather trading member views, and undertake other measures to determine specifications.
- Future and options contract expiry months are set by JSE, with requirements for contracts expiring longer than one year.
- Option contracts can be traded based on specified strike prices associated with the underlying futures.
Contract Listing Procedures
- JSE has the authority to add, remove, or suspend futures and options contracts from the IRC securities list.
- Amendments to conditions of existing contracts can be imposed by the JSE.
- Notifications regarding any changes to contracts will be provided to trading members along with effective dates.
Listings Investigation or Suspension
- The JSE can remove, suspend, or investigate any IRC security and is required to inform the public about such actions.
- Reasons for any removal, suspension, or investigation will be publicly disclosed as deemed appropriate by the JSE.
- The JSE may authorize media publications to disseminate information regarding IRC security actions.
IRC Securities Overview
- JSE maintains a record of IRC securities under section 11(8)(a) of the Financial Markets Act.
- Interest rate derivatives offered include:
- Futures and options on government debt and state-owned company debt (Bond Futures, Bond Options, Index Futures).
- Short-Term Interest Rate (STIR) Futures, specifically Jibar Futures.
- Long-Term Interest Rate (LTIR) Futures, specifically Swap Futures.
Trading Facilities
- JSE's Interest Rate Derivatives Market provides on-screen and off-screen trade booking options.
- All exchange-traded Interest Rate Derivative positions are margined and settled by JSE Clear, reducing counterparty credit risk.
- Real-time transaction surveillance is conducted by JSE's regulatory team to ensure fair pricing and compliance.
Participant Eligibility
- Market participation is open to individuals or entities actively trading in Interest Rate Derivatives while complying with JSE's market requirements.
- Alternatively, clients can trade through members who meet the JSE’s regulatory standards, with member entities including brokers, banks, and asset managers.
Contract Specifications
- Specifications for interest rate and currency derivatives are set by the JSE Executive.
- JSE may conduct surveys, gather trading member views, and undertake other measures to determine specifications.
- Future and options contract expiry months are set by JSE, with requirements for contracts expiring longer than one year.
- Option contracts can be traded based on specified strike prices associated with the underlying futures.
Contract Listing Procedures
- JSE has the authority to add, remove, or suspend futures and options contracts from the IRC securities list.
- Amendments to conditions of existing contracts can be imposed by the JSE.
- Notifications regarding any changes to contracts will be provided to trading members along with effective dates.
Listings Investigation or Suspension
- The JSE can remove, suspend, or investigate any IRC security and is required to inform the public about such actions.
- Reasons for any removal, suspension, or investigation will be publicly disclosed as deemed appropriate by the JSE.
- The JSE may authorize media publications to disseminate information regarding IRC security actions.
IRC Securities Overview
- JSE maintains a record of IRC securities under section 11(8)(a) of the Financial Markets Act.
- Interest rate derivatives offered include:
- Futures and options on government debt and state-owned company debt (Bond Futures, Bond Options, Index Futures).
- Short-Term Interest Rate (STIR) Futures, specifically Jibar Futures.
- Long-Term Interest Rate (LTIR) Futures, specifically Swap Futures.
Trading Facilities
- JSE's Interest Rate Derivatives Market provides on-screen and off-screen trade booking options.
- All exchange-traded Interest Rate Derivative positions are margined and settled by JSE Clear, reducing counterparty credit risk.
- Real-time transaction surveillance is conducted by JSE's regulatory team to ensure fair pricing and compliance.
Participant Eligibility
- Market participation is open to individuals or entities actively trading in Interest Rate Derivatives while complying with JSE's market requirements.
- Alternatively, clients can trade through members who meet the JSE’s regulatory standards, with member entities including brokers, banks, and asset managers.
Contract Specifications
- Specifications for interest rate and currency derivatives are set by the JSE Executive.
- JSE may conduct surveys, gather trading member views, and undertake other measures to determine specifications.
- Future and options contract expiry months are set by JSE, with requirements for contracts expiring longer than one year.
- Option contracts can be traded based on specified strike prices associated with the underlying futures.
Contract Listing Procedures
- JSE has the authority to add, remove, or suspend futures and options contracts from the IRC securities list.
- Amendments to conditions of existing contracts can be imposed by the JSE.
- Notifications regarding any changes to contracts will be provided to trading members along with effective dates.
Listings Investigation or Suspension
- The JSE can remove, suspend, or investigate any IRC security and is required to inform the public about such actions.
- Reasons for any removal, suspension, or investigation will be publicly disclosed as deemed appropriate by the JSE.
- The JSE may authorize media publications to disseminate information regarding IRC security actions.
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