Euronext, the Eurozone’s primary exchange, said the aim of the agreement is to extend access to the global benchmark Milling Wheat contract by broadening its international exposure to a wider audience.
The exchange added that the JSE partnership will also extend their reach into Africa, which is set to be the second-fastest growing region next year, according to the International Monetary Fund (IMF).
“Euronext is delighted to be able to offer its global benchmark wheat contract to the Johannesburg Stock Exchange under its own branding. This agreement fits within our larger strategy of broadening our reach in a selective manner with targeted partners,” said Nicholas Kennedy, head of commodities business development at Euronext.
“In this particular case, it further strengthens our high quality franchise through greater visibility while providing JSE with the opportunity to offer a broader range of products to its clients looking to hedge their volatility in the wheat agricultural area.”
The agreement will not only allow each exchange the right to use the settlement prices and data for the other’s commodities contracts, but can also be extended to include Euronext’s contracts for Rapeseed and Corn.
Chris Sturgess, director of commodities and key client management at the JSE, added, “The JSE is pleased to make available to its clients Euronext’s benchmark Milling Wheat contract. This will give local market participants easy access to the European wheat market, adding a wider choice of trading opportunities where participants already access South African and North American wheat markets,"
"The South African exchange looks forward to the growth of the strategic relationship with Euronext through which we are jointly able to offer a wider range of products across our client base.”