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Currency & Derivatives Trading

Investec Bank is an active market maker in both the spot and forward USD/ZAR inter-bank markets lead by a team of skilled foreign exchange professionals.

This team collaborates to offer a broad range of corporate and parastatal clients:

Innovative structuring
Advanced product development
Highly competitive pricing

All Capital markets divisions offer an unconventional approach to clients; teams comprise specialists who work together to provide a truly unique offering.

Foreign Exchange trading is no exception. Their solutions are tailor-made using both vanilla and derivative products to meet specific client requirements, in the most cost efficient manner.

The product range includes:

USD/ZAR spots and forwards
Long dated forwards out to 10 years
Spots and forwards on G7 currencies
Interest rates and derivatives of the G7 countries
Options on USD/ZAR and G7 currencies
Currency futures
Options on Currency Futures

Spot trading

The South African trading desk offers competitive pricing to corporates and institutions in ZAR, major currencies and emerging market currencies.

Options trading

The team provides pricing, trading strategies and hedging strategies for corporates and institutions in the market. The markets covered include vanilla and exotic products in USD/ZAR as well as all crosses against the Rand.

Forward pricing

Our team can provide views and strategies for forward cover, provided at very competitive prices, from one week to 10 years.

Currency futures

These are contracts that allow you to trade an underlying exchange rate for a pre-determined date in the future.

Currency futures operate as follows:

The standard contracts we trade to are March, June, September and December contracts
Initial margin, priced in Rand, of the underlying currency pair needs to be placed
Thereafter, a variation margin will be placed or received, depending on market movements
We quote USDZAR, GBPZAR, EURZAR and AUDZAR contracts

Options on Currency Futures

We have launched options on currency futures to allow clients to hedge themselves or take a speculative view on the currency market

What are they:

Options on Currency Futures are European-styled derivative contracts that grant the purchaser the right, but not the obligation, to trade a Currency Future contract at a predetermined date in the future at an agreed price.
Currency options traded on Yield-X are based on the underlying Currency Futures contracts; USD/ZAR, EUR/ZAR, GBP/ZAR and AUD/ZAR.

For a team that trades in a league of our own give us a call.

Interested in this information?

Contact: Grant Barrow
Capital Markets
Phone number: +27 11 286 4807

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Published: 05 August 2009

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