JSE Interest Rate Derivatives, PDF

IRC Securities -------------- ### List of IRC securities The IRC Rules state that the record of IRC securities which may be bought or sold on the IRC markets shall be kept by the JSE in the list of the securities in terms of section 11(8)(a) of the Financial Markets Act. JSE has listed a number o...

IRC Securities -------------- ### List of IRC securities The IRC Rules state that the record of IRC securities which may be bought or sold on the IRC markets shall be kept by the JSE in the list of the securities in terms of section 11(8)(a) of the Financial Markets Act. JSE has listed a number of interest rate derivatives, namely - futures and options on government debt and state-owned company debt, - STIRs (Short Term Interest Rate) Futures, namely Jibar Futures and - LTIRs (Long Term Interest Rate Futures) namely Swap Futures. The JSE's Interest Rate Derivatives Market enables you to trade the following Interest Rate Derivatives that the JSE has listed: - Futures and options on government debt and State-owned company debt: Bond Futures, Bond Options, and Index Futures - Short-term Interest Rate Futures (STIRs): [Jibar Futures](https://www.jse.co.za/trade/derivitive-market/interest-rate-derivatives-market/short-term-interest-rate-derivatives) - Long Term Interest Rate Futures (LTIRs): [Swap Futures](https://www.jse.co.za/trade/derivitive-market/interest-rate-derivatives-market/swap-futures) The Interest Rate Derivatives Market **offers participants the functionality and facilities to book either on- or off-screen trades**. Irrespective of the method of execution, all exchange traded **Interest Rate Derivative positions are margined and cleared by JSE Clear clearing house**. This reduces counterparty credit risk. The regulatory team at the **JSE conducts real time surveillance of the Interest Rate Derivative transactions** to ensure fair pricing and compliance with the JSE rules. Who should use these? You can become a market participant by actively trading in Interest Rate Derivatives securities and complying with the JSE's Interest Rate and Currency market requirements. Alternatively, you can contact trade as a client of a member who already complies with the requirements of the JSE Interest Rate and Currency market. The current members of this market vary from brokers, banks to asset managers. How to Participate in the Interest Rate Derivatives Market Membership of the market is open to market participants who actively trade in interest rate derivative securities and who comply with the JSE's Interest Rate and Currency market requirements. Contract specifications of IRC securities - The contract specifications of interest rate derivatives and currency derivatives contained in the list of IRC securities kept in terms of these rules shall be determined by the JSE Executive. - The JSE may conduct surveys and research, call for the views of trading members and any committee and take such other steps as it may deem appropriate in determining the contract specifications of IRC securities listed by the JSE. - The JSE may decide which expiry months shall be specified for the futures and option contracts contained in the list referred to in JSE IRC Rule 6.10 (List of IRC Securities) and it shall publish such futures and option contracts in a notice to trading members: Provided that where the expiry date of a futures or option contract is longer than one year the JSE shall specify the expiry date. - Option contracts having strike prices as contained in the contract specification of the particular option contract may be traded when the expiry month of the underlying futures contract is specified. Listing of futures and option contracts The JSE may -- - add futures and option contracts to, or remove futures and option contracts from, the list of IRC securities kept in terms of these IRC Rules, or suspend futures and option contracts from such list; - impose new conditions on or amend the existing conditions of such futures and option contracts. The JSE shall notify all trading members of any actions performed by the JSE and shall stipulate a date for the coming into operation of an addition, removal or suspension of futures and option contracts or new or amended conditions relating to futures and option contracts. Investigation or suspension of listing It shall be a condition of a listing that - the JSE may in such manner as it deems fit, notify the public that it has -- - removed any IRC security from the list; - suspended the listing of any IRC security; - investigated dealings in any IRC security, - and it shall publish the reasons for such removal, suspension, or investigation, as the case may be, and so much of its conclusions or findings as it may deem advisable; - the JSE may publish or cause, permit or authorise the proprietor or publisher of any newspaper or other periodical publication to publish any statement made.