Rand volatility jolts South Africa's quanto stock futures market

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In the South African equity derivatives market, necessity has long been the mother of invention. Currency controls that restrict the amount firms and individuals can invest offshore have given birth to a growing market for listed quanto products – equity futures on foreign companies that end-users can trade and clear locally in rand, although they remain exposed to the risk that currency movements could erode the value of the contract. As a result of that exposure, the market has taken a hit in

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