Exchange operator Euronext N.V. (ENXB.BE, ENX.BR, ENX.AS, ENX.PA) Monday announced that it has signed a license agreement with the Johannesburg Stock Exchange or JSE. The deal provides the JSE with the right to list the flagship Milling Wheat contract currently traded on Euronext.
The aim of the agreement is to extend access to the global benchmark Milling Wheat contract by broadening its international exposure to a wider audience. The agreement also extends Euronext's reach into Africa, which according to International Monetary Fund forecasts, will be the world's second fastest-growing region next year, expanding 5.75 percent.
The license agreement signed between the two exchanges is reciprocal, enabling each exchange the right to use the settlement prices and brands for the other's commodities contracts.
JSE will initially list the Euronext Milling Wheat contract, and this agreement can be extended to include its contracts for Rapeseed and Corn.
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