Rand volatility jolts South Africa's quanto stock futures market

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