ALSI TRADERS TAKE NOTE

All traders trading the ALSI index future should take note of a material event that could have an impact on the value of the March 2013 Future. The FTSE/JSE quarterly index review is scheduled to be effective after close of business on Friday the 15^th of March 2013. On this day the methodology for the calculation of the underlying Index to the ALSI future will be changed and the index will be recalculated after the market closes. This will impact directly on the valuation of all index futures and options with a March 2013 expiry.

We do not know how material this one time change in the future price could be as a result of these changes, but we are advising clients to be cautious when holding overnight positions on the 15^th of March.  Due to this change in methodology Fund Managers might have to make adjustments to their portfolios which could have a huge impact on volumes traded in the underlying JSE shares making up the index. This could result in unexpected changes to the index price and the future prices.

Please click here to view the note from the JSE for more information.