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JSE adds diesel hedge instruments to its commodity derivatives offering

4th April 2014

By: Natasha Odendaal

Creamer Media Senior Deputy Editor

  

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The JSE has introduced the Diesel Hedge Futures and Options to its range of commodity derivatives in an effort to allow investors to protect themselves against movements in the local diesel price.

Hedge

“The new contracts provide investors with a hedge against movements in the price of diesel refined in Europe, but this price also plays a big role in what we pay for diesel in South Africa,” said JSE commodity derivatives director Chris Sturgess.

The contracts, which would be traded in rand per litre and cash-settled, provided a hedge against movements in the local pump price of die- sel by following the price of European Gasoil futures, as traded on the NYSE.

European Gasoil is a proxy for the basket of international energy prices used to calculate the South African diesel price.

Edited by Martin Zhuwakinyu
Creamer Media Magazine Managing Editor

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