Currency reference warrants: Standard Bank makes opportunistic move

Last week, the London Stock Exchange trumpeted that it was listing currency-based exchange traded funds. This week, it’s the turn of the Johannesburg Stock Exchange to jump on the FX bandwagon. In what is a first for South Africa, Standard Bank has launched currency reference warrants in what it says is a “response to the growing popularity of currency trading in South Africa.”

Last week, the London Stock Exchange trumpeted that it was listing currency-based exchange traded funds. This week, it’s the turn of the Johannesburg Stock Exchange to jump on the FX bandwagon. In what is a first for South Africa, Standard Bank has launched currency reference warrants in what it says is a “response to the growing popularity of currency trading in South Africa.”

I can’t help but feel both moves are opportunistic and I really don’t see what value the products will bring.

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