An SSF contract is a futures contract where the underlying security is an equity exchange listed share (in the case of South Africa these will be shares listed on the JSE).

An SSF contract is a legally binding commitment made through a futures exchange to buy or sell a single equity in the future. Each SSF contract is standardized with regard to size, expiration, and tick movement. The value of an SSF contract is equal to 100 times the particular share’s futures price. For example, if Company X is trading on Safex at R52.00 then holding one futures contract in Company X is the equivalent of investing R5, 200 in Company X shares.

The price for an SSF contract is negotiated through Safex’s order matching platform called the Automated Trading System (ATS). Safex also lists options on SSF's, which are American style options exercisable into SSF's. This means that upon expiry of an SSF option contract, the buyer or seller of the option then becomes the buyer or seller of an individual equity futures contract.

Each SSF contract, upon expiry, is physically settled i.e. the long position holder (buyer) of a futures contract takes delivery of the actual scrip from the short position holder (seller).

SSF's offer investors an opportunity to enhance the performance of their equity portfolios, protect their investments against adverse price movements and cheaply diversify risk.

A currency future contract is a contract that allows market participants to buy or sell specific quantities of the underlying currency at a specified price for a specified time in the future. The underlying instrument of a currency future contract is the rate of exchange between one unit of foreign currency and the South African Rand. Dollar/Rand Euro/Rand and Pound/Rand.

The currency market is the most liquid of all asset classes with an estimated 10 billion USD traded daily in the SA currency market. With this kind of turnover there is always movement in the currency markets and hence, the chance to make profits even when other markets are stagnant.

EDI Pty Ltd now offers you the facility to trade in currencies on the JSE without using your offshore investment allowance. Now trading in foreign exchange currencies is as easy as trading futures on listed shares. Once you have paid an initial margin (10% of the nominal contract value for near dated contracts), you may open a position (long or short) to trade in US Dollars by contacting EDI with the necessary trade instruction.

Your initial margin remains on deposit as long as you have an open position, which will attract a market related interest and will be refunded to you once the position is closed out.

NEDBANK Contracts for Difference (CFDs) are an exciting new trading product that allows investors exposure to JSE-listed securities on a leveraged basis.

A CFD is an over-the-counter derivative contract based on an underlying equity instrument under which two parties agree to exchange the difference between the opening and closing value of the contract over a period of time. CFDs allow investors to position themselves in relation to the rise or fall of JSE-listed securities without the need for ownership of the securities. CFDs are leveraged products that require an investor to deposit cash as a margin, rather than pay for the full value of the underlying shares.

EDI Pty Ltd facilitates CFD trading via the NEDBANK platform. The investor may either be the long or the short counterparty to the CFD, with NEDBANK acting as the opposite counter party. NEDBANK is a well capitalized South African bank with investment grade rating from Moody's, a leading international rating agency, which mitigates counterparty risk. Effectively, cash is being borrowed by the long counterparty and lent by the short counterparty in respect of the underlying security.

Please contact EDI Pty Ltd at 0861 660 000 for assistance in opening an account for the NedBank CFD’s.

RSA Treasury was launched in 2007. The division within RussellStone will focus on providing treasury outsource services to companies. RSA Treasury assists clients in the management of their liquidity, currency and interest rate risk.

Please contact EDI Pty Ltd at 0861 660 000 for assistance with the RussellStone Anderson Treasury.