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In 2019, the JSE contracted Dr Matthew Roberts to perform a follow-up review of the use of location differentials and provide an independent assessment in this regard. The JSE acknowledged his report and has since held various consultations and workshops to explore how the various recommendations could be implemented. It emanated from the report that continued use of location differentials was critical to a successful commodity derivatives contract in South Africa. 

The JSE was approached by the University of the Free State to be part of an evaluation process for research proposing location differentials for soya beans with multiple reference points. The JSE debated the proposed methodology through interactive workshops providing input that was included in the report. Although some argue in favour of the model to be applied to the South African soya bean derivatives market, and the results be presented for a broader market consultation process, the industry is of opinion that additional proposals such as basis trading should be considered as well. 

The JSE remains open to considering improvements to the current location differential methodology and encourages market participants to take a similar approach. – Memorandum, JSE & Agbiz Grain 

In 2019, the JSE contracted Dr Matthew Roberts to perform a follow-up review of the use of location differentials and provide an independent assessment in this regard. The JSE acknowledged his report and has since held various consultations and workshops to explore how the various recommendations could be implemented. It emanated from the report that continued use of location differentials was critical to a successful commodity derivatives contract in South Africa. 

The JSE was approached by the University of the Free State to be part of an evaluation process for research proposing location differentials for soya beans with multiple reference points. The JSE debated the proposed methodology through interactive workshops providing input that was included in the report. Although some argue in favour of the model to be applied to the South African soya bean derivatives market, and the results be presented for a broader market consultation process, the industry is of opinion that additional proposals such as basis trading should be considered as well. 

The JSE remains open to considering improvements to the current location differential methodology and encourages market participants to take a similar approach. – Memorandum, JSE & Agbiz Grain