Risk South Africa Rankings 2014

While South Africa’s macroeconomic struggles have led to reduced levels of trading in the interdealer markets, institutional investors and corporate hedgers have helped fill the gap.

South Africa’s derivatives dealers have a lot on their plates. Lower risk appetite and fewer participants have drained liquidity from the markets, while pending regulatory reforms threaten to further depress activity and add to costs. Furthermore, many fear the looming threat of monetary tightening by the US Federal Reserve could trigger a stampede out of emerging market assets.

But, despite the macro concerns, dealers point to healthy demand for hedging products among domestic corporates