Standard Bank, South Africa's largest warrant trading house, is the first local financial institution to launch platinum warrants to retail investors.
Standard Bank will soon be launching commodity warrants on gold and oil.
Retail commodity warrants allow investors to access the global commodity market from South Africa.
Warrant holders will have the opportunity to make a rand profit from the upward or downward movement in the rand price of platinum.
Brett Duncan, Director Equity Derivatives at Standard Bank says: "Investor interest in commodities as an asset class is growing steadily."
"Commodities provide local investors with the opportunity to build wealth on top of physical demand for metals, while also providing for a rand hedge instrument."
"The newly launched platinum commodity warrants give investors access to reasonably priced assets at higher than average yields."
To invest in warrants investors pay a small price for the warrant but are exposed to the full value of the underlying asset.
A small change in the price of the underlying commodity or exchange rate will therefore result in a greater change in the value of the warrant.
The advantage of warrants for retail investors is that losses are limited to the initial purchase price of the warrant.
Standard Bank is the only flat rate warrants broker in South Africa.
Duncan says: "The introduction of gold, platinum and oil warrants is aimed at providing for increased demand in commodity instruments."
"The introduction of these commodity warrants builds on other offerings which will provide investors with further exposure to commodities."
Leanne Parsons, JSE Chief Operating Officer says: "We are delighted to welcome Standard Bank's platinum warrant to the exchange."
"In listing this product, Standard Bank has expanded the number of ways that individuals can gain access to platinum investments."
"We look forward to working with the bank's team to welcome more commodity reference warrants to the market in the foreseeable future." - I-Net Bridge