The South African Futures Exchange

The South African Futures Exchange (Safex) consists of a financial markets division (equity derivatives) and an Agricultural Markets Division (AMD) - agricultural derivatives.
The measures of the financial markets division have grown from R3.4 million at its formation in 1990 to R69 million at June 1997. Safex has experienced a growth of 10.36 million contracts during he 1996/97 financial year, a year-on-year increase of 35 percent.

AMD was formed in 1995 and by 30 June 1997, the net reserves amounted to R3.2 million compared with the original operating forecast of R1.4 million.

Safex has kept abreast of developments in the world financial markets, and continues to make steady progress despite intensifying competition from international derivative exchanges and over-the-counter alternatives. The Safex reserves have grown sufficiently to allow a significant reduction in the fees it levies per future or options contract. Consequently, all fees were reduced by 50 per cent in 1997 and the changes on allocated trades were removed.

The Exchange is directed by an executive committee consisting of up to 11 elected members all with full voting rights, and an additional non-voting nominated people that the executive appoints. Policy decisions are made by the committee and carried out by a full-time management team headed by the CEO.

The Exchange is governed by members, but through their use of the exchange services, they are also its clients. The exchange is a Self Regulatory Authority and exercises its regulatory functions in terms of the Financial Markets Control Act, 1989 and its rules. The Exchange, in turn, is supervised by FSB.