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JSE launches new Futures

The Johannesburg Stock Exchange (JSE), early this week officially launched JSE Eris Interest Rate Swap (IRS) Futures. The new JSE Eris Interest Rate Swap (IRS) Futures will be based on the Johannesburg Interbank Agreed Rate (JIBAR) and denominated in South African Rand (ZAR).

The product will follow the standard South African swap market conventions while using the Eris MethodologyTM, allowing the contracts to replicate the cash flows of over the counter (OTC) swaps. The new product offering will be available for trading by all registered Interest Rate market members and their clients and will be cleared through JSE Clear.
“Bringing this product to market has been a collaborative effort between us, our clients and our partnership with Eris. After significant engagement with market participants we took a global product and modified it to make it a truly South African product relevant to the South African market needs,” said Warren Geers, Head: Interest Rates and Currencies at the JSE.
“Eris congratulates the JSE on today’s launch of JSE Eris Swap Futures, which utilise the Eris Methodology to offer the South African market the cash flows of interest rate swaps in a capital-efficient futures form,” said Neal Brady, CEO of Eris Exchange. “We look forward to growth in JSE Eris Swap Futures similar to what we have seen in the U.S., where year-to-date volumes are twice that of last year.”
The new IRS Swap Futures will be competitively priced; clients will be charged R1 per contract (R100 000) for 1 and 2 year tenors and R2 for any tenors greater than 2 years. The JSE will make appropriate pricing alignment as the product gathers more trading momentum.
The swap futures which are based on the Eris Methodology remain futures throughout the full lifecycle of the contract with no risk of physical delivery and can be held to their maturity date.
In a first of its kind and truly innovative move, the JSE will use a portfolio VaR framework to determine the amount of initial margin participants should post for position in the swap futures product suite, instead of the traditional portfolio scanning framework (j-SPAN) that is used for all other futures at the JSE. Portfolio level initial margin will thus recognise the offsets associated with trading long and short positions across the curve.
“We believe that providing these swap futures products via the JSE will offer our clients the regulatory certainty of futures and allow market participants to operate within the familiar eco-system of exchange traded futures,” concluded Geers.
Looking forward, the JSE expects trading of the IRS Swap Futures to pick up in the last quarter of 2015 as clients are in the process of ensuring their systems are equipped to start trading the new Eris Interest Rate Swap (IRS) futures.

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Following reverse listing, public can now acquire shareholding in Paratus Namibia

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20 February 2020, Windhoek, Namibia: Paratus Namibia Holdings (PNH) was founded as Nimbus Infrastructure Limited (“Nimbus”), Namibia’s first Capital Pool Company listed on the Namibian Stock Exchange (“NSX”).

Although targeting an initial capital raising of N$300 million, Nimbus nonetheless managed to secure funding to the value of N$98 million through its CPC listing. With a mandate to invest in ICT infrastructure in sub-Sahara Africa, it concluded management agreements with financial partner Cirrus and technology partner, Paratus Telecommunications (Pty) Ltd (“Paratus Namibia”).

Paratus Namibia Managing Director, Andrew Hall

Its first investment was placed in Paratus Namibia, a fully licensed communications operator in Namibia under regulation of the Communications Regulatory Authority of Namibia (CRAN). Nimbus has since been able to increase its capital asset base to close to N$500 million over the past two years.

In order to streamline further investment and to avoid duplicating potential ICT projects in the market between Nimbus and Paratus Namibia, it was decided to consolidate the operations.

Publishing various circulars to shareholders, Nimbus took up a 100% shareholding stake in Paratus Namibia in 2019 and proceeded to apply to have its name changed to Paratus Namibia Holdings with a consolidated board structure to ensure streamlined operations between the capital holdings and the operational arm of the business.

This transaction was approved by the Competitions Commission as well as CRAN, following all the relevant regulatory approvals as well as the necessary requirements in terms of corporate governance structures.

Paratus Namibia has evolved as a fully comprehensive communications operator in Namibia and operates as the head office of the Paratus Group in Africa. Paratus has established a pan-African footprint with operations in six African countries, being: Angola, Botswana, Mozambique, Namibia, South Africa and Zambia.

The group has achieved many successes over the years of which more recently includes the building of the Trans-Kalahari Fibre (TKF) project, which connects from the West Africa Cable System (WACS) eastward through Namibia to Botswana and onward to Johannesburg. The TKF also extends northward through Zambia to connect to Dar es Salaam in Tanzania, which made Paratus the first operator to connect the west and east coast of Africa under one Autonomous System Number (ASN).

This means that Paratus is now “exporting” internet capacity to landlocked countries such as Zambia, Botswana, the DRC with more countries to be targeted, and through its extensive African network, Paratus is well-positioned to expand the network even further into emerging ICT territories.

PNH as a fully-listed entity on the NSX, is therefore now the 100% shareholder of Paratus Namibia thereby becoming a public company. PNH is ready to invest in the future of the ICT environment in Namibia. The public is therefore invited and welcome to acquire shares in Paratus Namibia Holdings by speaking to a local stockbroker registered with the NSX. The future is bright, and the opportunities are endless.