The interest rate market is a financial market in which participants are able to trade interest rate derivatives.The 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 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.

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
• Long Term Interest Rate Futures (LTIRs): Swap Futures

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.