What is the JSE futures close out?

The JSE operates the equity derivatives market which is an exchange which was established to provide a secure and efficient on-exchange trading for derivatives in South Africa. All the derivatives contracts on the JSE are standardized and have expiry dates.

Most the JSE’s derivative contracts expire quarterly on the third Thursday of March, June, September and December at midday. The day of expiry is known as the close out date, and on this day existing contracts for that quarter are officially closed at a closing price that is determined through the JSE’s auction process, while the new official opening price for next contracts is also determined by the same auction process.

This auction also takes place for all JSE listed equities and in addition to determining opening and closing prices, it also done to facilitate the transaction of significantly large volumes. This close out affects all market participants who trade equities and equity derivatives on the JSE, as there is a trading halt during the closing and opening auctions for both listed equities and all derivative contracts.

Please note that on Thursday 19th September 2019, JSE will perform a quarterly close out, affecting the following instruments:

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