Article
Traders call for greater market transparency
Published: 03/11/2025
In a bid to enhance market transparency, the South African Cereals and Oilseeds Trade Association (Sacota) has urged the Johannesburg Stock Exchange (JSE) and the Financial Sector Conduct Authority (FSCA) to introduce a trader position report – commonly known as a Commitments of Traders (COT) report.
“Excessive, unjustified, or unexplained market volatility is harmful,” says Dr André van der Vyver, executive director of Sacota. He emphasised that access to reliable information is one of the most effective ways to curb or prevent such volatility. The proposed COT report would be a valuable source of this information.
Other data such as grain stock levels and distribution figures are also vital, but stock numbers alone do not tell the full story. Timely and cost-effective access to these stocks is just as important. When market participants have insight into the activities of different trader categories, they tend to act with greater caution and responsibility in their own decisions.
Sacota remains committed to advancing transparency in grain trading on the JSE. “We will therefore continue doing our homework and taking further steps to help make this a reality,” concluded Dr Van der Vyver. – Izak Hofmeyr, Plaas Media