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JSE Derivatives and SAFEX Reference

What this page covers

SAFEX is the JSE's derivatives market. Unlike a CFD from an offshore broker, a SAFEX contract is exchange traded, centrally cleared and settled against a published price.

R10per ALSI index point
100shares per SSF
3rd Thuclose-out day
4close-outs a year
The main contracts
ContractUnderlyingContract sizeSettlement
ALSI futureFTSE/JSE Top 40 indexR10 per index pointCash
DTOP futureFTSE/JSE Top 40 SWIXR10 per index pointCash
Single stock futureOne JSE-listed share100 sharesCash or physical
Index optionTop 40 indexAs the futureCash
Can-Do futureCustomisedNegotiatedAs agreed
Dividend futureIndex dividendsPer pointCash
SAFEX against an offshore CFD
FeatureSAFEXOffshore CFD
CounterpartyThe clearing houseThe broker
RegulatorJSE and FSCAThe broker's home regulator
PricingExchange order bookThe broker's quote
MarginSet by the exchangeSet by the broker
ExpiryQuarterly close-outUsually none
Overnight costNone, the price carries itDaily financing
Minimum sizeOne contract, usually substantialFractional
The close-out calendar
ItemRule
Close-out monthsMarch, June, September, December
Close-out dateThe third Thursday of the month
Close-out periodPrices sampled over a defined window
Rolling a positionClose the near contract, open the next
Effect on the marketVolume spikes, and the index can be pinned

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How these figures work

The figures on this page come from the body that publishes them and change on a schedule rather than continuously, which is what makes them worth keeping in one place. The quarterly close-out is one of the few genuinely predictable volume events on the JSE, and the days around the third Thursday behave differently from a normal week.

A single stock future is often cheaper than buying the share for a short holding period, because there is no securities transfer tax on the derivative.

★ What this means in practice

Contract sizes on SAFEX are institutional. An ALSI future at R10 a point on an index near 100,000 is roughly a R1 million exposure per contract.

✕ Common mistakes

  • The quarterly close-out is one of the few genuinely predictable volume e. The quarterly close-out is one of the few genuinely predictable volume events on the JSE, and the days around the third Thursday behave differently from a normal week.
  • A single stock future is often cheaper than buying the share for a short. A single stock future is often cheaper than buying the share for a short holding period, because there is no securities transfer tax on the derivative.
  • Contract sizes on SAFEX are institutional. Contract sizes on SAFEX are institutional. An ALSI future at R10 a point on an index near 100,000 is roughly a R1 million exposure per contract.
  • Taking a figure without its date. A number from a reference page is only as good as when it was last checked, which is why the date sits at the top of this one.

Notes on reading these figures

  • The quarterly close-out is one of the few genuinely predictable volume events on the JSE, and the days around the third Thursday behave differently from a normal week.
  • A single stock future is often cheaper than buying the share for a short holding period, because there is no securities transfer tax on the derivative.
  • Contract sizes on SAFEX are institutional. An ALSI future at R10 a point on an index near 100,000 is roughly a R1 million exposure per contract.

To put these figures to work, The JSE Indices Reference runs the arithmetic on your own numbers; JSE versus CFDs covers the same ground in ordinary language; Margin Calculator goes into the detail this table only summarises; Leverage and Margin Limits is the related figure worth reading beside it; and JSE Trading Cost Schedule covers what this page leaves out.

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Terms used on this page

Definitions
SAFEX
The JSE's financial derivatives market.
ALSI future
A future on the FTSE/JSE Top 40 index.
Single stock future
A future on 100 shares of one listed company.
Close-out
The quarterly settlement of expiring contracts.
Can-Do
A customised contract listed on request.

Frequently asked questions

What is SAFEX?

The JSE's derivatives market, where equity index and single stock futures and options are traded and centrally cleared.

How is a SAFEX future different from a CFD?

The counterparty is the clearing house rather than a broker, pricing comes from an order book, and margin is set by the exchange.

When is close-out?

The third Thursday of March, June, September and December.

What does an ALSI future cost?

R10 per index point, so at an index near 100,000 one contract is roughly R1 million of exposure.

Is a single stock future cheaper than the share?

Often, for a short hold, because no securities transfer tax applies to the derivative.

What is a Can-Do contract?

A customised derivative listed on request, with negotiated terms.