Time to hedge?
Good news for Zambian famers, as well as other grain traders: the Johannesburg Stock Exchange will offer derivative contracts on Zambian grain from next year, giving farmers and others a chance to hedge their grain price risk.
The contracts will be settled in US dollars – which may provide an added appeal to other groups given the recent depreciation in the kwacha. Read more
Analysts and bankers are warning that South Korea could weaken volumes in its equity derivatives market, one of the world’s largest, with a planned transaction tax on options and futures.
Seoul’s ministry of strategy and finance announced on Wednesday that it planned to introduce a tax of 0.001 per cent on the value of futures contracts linked to the Kospi 200 index of the largest Korean stocks, and a levy of 0.01 per cent on the premiums for options. It expects annual revenue of $89m from the tax, which will be introduced in January 2016.
In an interview with Radio Continental on Friday, Argentine central bank president Mercedes Marcó del Pont confirmed news reports that the government was considering means to stop guarantees in the country’s futures markets from being written in dollars or other foreign currencies. Read more
Argentina seems to have developed a new export line: futures markets know-how.
After a deal earlier this year to set up a futures exchange in Uruguay (a joint venture between Argentina’s commodity derivatives exchange MATBa and the Uruguayan bourse), Argentina’s futures and options exchange Rofex is now helping Paraguay establish its first futures market. Read more