Australian Securities Exchange Goes Live with Calypso Technology

Australian Securities Exchange Goes Live with Calypso Technology

Published on Sep 17, 2013

Calypso Technology Inc. announced that the Australian Securities Exchange (ASX) has cleared its first OTC derivatives transaction on its OTC clearing service that uses the Calypso System as the core clearing platform. The ASX OTC Derivatives Clearing Service launched on July 1st, 2013, with client clearing for Australian clients expected to be commercially launched in Q2 2014.


ASX, one of the world’s top 10 listed exchange groups, uses the Calypso solution to support OTC derivatives dealer-to-dealer clearing of standardized Australian Dollar (AUD) denominated interest rate swaps. ASX offers a cross-margining service on Calypso, enabling clearing members to offset initial margin between their interest rate swaps and 24 ASX exchange-traded interest rate futures products positions, thereby reducing the overall portfolio margin requirements. The Australian dealer community has expressed support for this service, as it retains their collateral onshore and facilitates capital efficiency via the clearing of OTC and exchange-traded derivatives together. ASX plans to offer AUD interest rate client clearing by Q2 2014, and is working with foundation customers comprising major Australian asset managers and state government treasuries.


Key factors in the selection of the Calypso platform for OTC clearing were Calypso’s market leadership in OTC derivatives clearing software and experience in working with 9 global CCPs. The Calypso system provides end-to-end clearing operations, risk management and connectivity between CCPs and clearing member firms.


Peter Hiom, Deputy CEO of ASX, said “ASX chose Calypso as a provider with deep experience in OTC derivatives clearing to help deliver the best solution to meet the needs of the Australian marketplace.”


“Calypso is at the forefront of the expansion of OTC clearing platforms around the world”, says Charles Marston, Chairman and CEO, Calypso Technology. “Calypso OTC clearing is a proven, future-proof solution that enables efficient and competitive entry into new markets and clearing of new products. We look forward to continuing our partnership with ASX and delivering the next phase – client clearing in Australia.”

Thomson Reuters Introduces Next Generation Elektron Consolidated Feed

Thomson Reuters Introduces Next Generation Elektron Consolidated Feed

Published on Sep 23, 2013

Thomson Reuters announced that it has introduced its next-generation consolidated feed, Elektron Real Time, to new locations in Asia. Launched this month in Sydney, Hong Kong and Singapore, Elektron Real Time will provide customers with full-tick, depth-of-market data from multiple venues around the world. The next generation feed has already been deployed in London, New York, Chicago, Tokyo and Frankfurt and is testimony to the company’s plans to roll out the new high-performance feed worldwide.


The rise of automated trading strategies coupled with the growing requirement for differentiated content has made it more important than ever to connect participants and marketplaces to a technology that offers them a real competitive advantage. As interest in global capital markets from Asian investors grows, the demand for data feeds that can offer enhanced quality of service, lower latency and in-depth coverage has been increasing rapidly in the region.

 “Hong Kong, Singapore and Sydney are at the heart of Asia’s financial centers with sophisticated automated trading requirements fuelling demand for market transparency. This, coupled with the impact of liquidity fragmentation across Australia is promoting demand across the region for greater depth of content coverage and lower latency data delivery,” said Ralf Roth, global head of Equities Feeds and Platform at Thomson Reuters. “The launch of Elektron Real Time in these centers empowers customers to respond to these challenges. The service provides coverage of more than 400 OTC and exchange traded markets – with full-tick, depth-of-market coverage. This ensures customers get the right data at the right time.”

Thomson Reuters Elektron is a suite of trading and data propositions that power the enterprise and connect global markets. Elektron delivers low latency feeds from more than 400 exchange-traded and OTC markets, along with analytics, distribution platform and transactional connectivity to support any financial workflow application. Elektron also powers the most innovative desktop and mobile application in the world, Thomson Reuters Eikon, bringing our global infrastructure to the fingertips of financial professionals, wherever they are and whatever their role. All of those capabilities can be deployed at a customer location or delivered as a fully managed service from any one of our co-location and proximity hosting sites around the globe.

OptionsCity to Offer Direct Access to CME Europe

OptionsCity to Offer Direct Access to CME Europe

Published on Sep 23, 2013

OptionsCity Software, the provider of electronic trading solutions, today announced that the company has completed conformance testing with CME Europe, a new London-based derivatives exchange (subject to Financial Conduct Authority Approval) and wholly owned subsidiary of CME Group. Upon the September 29, 2013 launch date of the exchange, and pending regulatory approval, OptionsCity will provide its clients that are members of the exchange with direct access to CME Europe.

“We are pleased to offer our customers access to trading futures on CME Europe,” replied Hazem Dawani, CEO of OptionsCity Software. “Our direct connectivity will offer highly reliable access and further competitiveness for our clients, allowing them to capitalize on opportunities in new markets. This is a milestone in our expansion in Europe.”

OptionsCity customers will be able to choose between trading the initial range of FX futures on CME Globex or by submitting block or EFPS trades via CME ClearPort for clearing. Clearing services will be provided by CME Clearing Europe, the London-based clearing house regulated by the Bank of England.

Customers will access products listed for trading on CME Europe via OptionsCity’s Metro and Freeway platforms. Metro, the firm’s flagship electronic trading and market making platform fully integrates with Freeway, a multi-asset automated trading platform that gives developers and traders a comprehensive development environment to create and back-test automated trading strategies, and execute trades to the market with micro-second speed.

FactSet Acquires Revere Data

FactSet Acquires Revere Data
Thursday, September 05, 2013

FactSet Research Systems Inc. (NYSE: FDS | NASDAQ: FDS), a leading provider of integrated financial information and analytical applications to the global investment community, today announced it has acquired Revere Data, LLC.

FactSet acquires Revere

Over the last decade, Revere has built a dynamic industry taxonomy that offers investors a unique way to classify companies and analyze how they fit in the global economy. Revere also offers a robust database of supply chain relationships that helps investors identify companies’ interrelationships and mutual dependencies, as well as a comprehensive geographic revenue exposure database to manage geopolitical and macroeconomic risk.

“Revere’s data solutions help refine interesting ideas and strategies so investors can better identify opportunities and measure risk exposure throughout the global equities and derivatives markets,” explains Phil Snow, Senior Vice President, Director of Global Content Sales at FactSet. “The addition of Revere’s specialty data complements FactSet’s commitment to provide clients with unique and insightful content sets.”

“At Revere, our data sets help unlock and maximize value for our customers and partners,” explains Kevin O’Brien, Chief Executive Officer of Revere Data. Adds Vivian Ramos, Chief Operating Officer, “We’re delighted to join FactSet as we share a common goal: to deliver innovative products that offer clients actionable insight.”

The acquisition of Revere is not expected to have a material impact on fiscal 2014 diluted earnings per share.

About FactSet
FactSet, a leading provider of financial information and analytics, helps the world’s best investment professionals outperform. More than 48,000 users stay ahead of global market trends, access extensive company and industry intelligence, and monitor performance with FactSet’s desktop analytics, mobile applications, and comprehensive data feeds. The Company has been included in FORTUNE’s Top 100 Best Companies to Work For, the United Kingdom’s Great Places to Work and France’s Best Workplaces. FactSet is listed on the New York Stock Exchange and NASDAQ (NYSE: FDS | NASDAQ: FDS). Learn more at, and follow us on Twitter:

About Revere
Revere Data, LLC, is the leading provider of industry classification and supply chain specialty data, analytics, and index solutions for the global financial services industry. Revere’s data is invaluable for traditional to alternative asset managers seeking alpha generation opportunities and better risk management capabilities. Index owners and fund sponsors use Revere to create innovative investment products for customers ranging from institutions to retail investors.

Instinet Extends Liquidity Aggregation Technology to Japan VWAP Crossing Platforms

Instinet Extends Liquidity Aggregation Technology to Japan VWAP Crossing Platforms

Click to access Instinet_Launches_Nighthawk_VWAP.pdf

HONG KONG – September 5, 2013 – Instinet Incorporated today announced the introduction of Nighthawk® VWAP, a fully customizable variant of its award-winning Nighthawk algorithm that provides aggregated access to the expanding universe of pre-market VWAP crosses in Japan.
Beginning with Instinet’s launch of JapanCrossingTM in 2001 and more recently with the introduction of similar pools in Japan, VWAP crossing platforms have provided an indispensable source of block liquidity through their anonymous, low market impact models. Including the two pre-market matches offered through JapanCrossing, there are now nine such crosses in the market. The VWAP module of Nighthawk, which executed over $3B (USD) of stock in Japan in Q2 2013, provides an efficient, intelligent way to get aggregated access to these crosses via a single destination.
Clients may send orders to Nighthawk VWAP from 00:00 JST onward. Beginning at 08:19 the algorithm begins cycling through the nine crosses, the last of which runs at 08:55. Matched orders receive an “indicative fill” at the stock’s previous night closing price, and are re-priced to the full day VWAP shortly after the market close at 15:00. During the month of August, clients saw a cross ratio (e.g., the percentage of total order volume completed) of 28% using Nighthawk VWAP.
“Nighthawk VWAP, like all of Instinet’s award-winning liquidity products and technology solutions, is driven by the needs of our clients. Nighthawk’s sophisticated liquidity aggregation gained popularity region-wide because it simplifies an important yet complicated process. We’re excited to extend its functionality to access these new venues,” said Joel Hurewitz, Head of Product Asia-Pacific Product Strategy.
Clients may access Instinet’s Nighthawk VWAP platform from Instinet’s Newport® EMS, through multiple third-party trading systems or via direct FIX connection.
Nighthawk VWAP is the latest Asia-Pacific-specific product to be launched by Instinet, which has seen a significant enhancement of its capabilities in the region over the past nine months. Since becoming the Nomura Group’s equities execution services arm in Hong Kong, Singapore and Australia, Instinet’s market share has increased to 3.1%, 2.9% and 1.7% in those markets, respectively*. Instinet clients are now able to pay for Nomura’s award-winning content in the region via Instinet, as well as leverage the Nomura Group’s entire AEJ equity trading network, which includes 57 sales/trading staff across nine offices**.
“Clients have responded extremely favorably to Instinet’s newly enhanced platform in the region, with the number of active trading accounts more than doubling from January to present,” said Shaun Bramham, CEO, Asia-Pacific. “By marrying Instinet’s electronic trading product set and agency-only liquidity with the content and capabilities of Nomura’s broker dealers, the Nomura Group is today able to provide an equities offering that is without peer.”
* Market share for Q2 2013
** Hong Kong, Singapore and Australia exchange memberships are held by Instinet broker dealers; India, Indonesia, Korea, Malaysia, Taiwan and Thailand exchange memberships are held by Nomura broker dealers.
About Instinet
As the equity execution services arm of the Nomura Group, Instinet Incorporated’s subsidiaries provide independent, agency-only brokerage services to clients throughout the world. Through its advanced suite of electronic trading tools, experienced high-touch trading group and unparalleled access to insightful content and unique agency-only liquidity, Instinet helps institutions lower overall trading costs and ultimately improve investment performance. Over the course of its 40+ year history, Instinet has introduced a range of now industry-standard trading technologies as well as the world’s first major electronic trading venue, one of the first U.S. ECNs and, most recently, the Chi-X businesses. For more information, please visit or follow Instinet on Twitter.
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Mark Dowd
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SWIFT Adds BIC To LEI Directory To Its SWIFTRef Platform

SWIFT Adds BIC To LEI Directory To Its SWIFTRef Platform – New Directory Will Enable Easy Mapping Between Business Identifier Codes (BICs) And Legal Entity Identifiers (LEI)

Date 03/09/2013
SWIFT, financial messaging provider for more than 10,000 financial institutions and corporations in 212 countries, has today announced the release of a new Business Identifier Code (BIC) to Legal Entity Identifier (LEI) directory on its SWIFTRef data platform. The BIC to LEI directory has been created in response to industry demands and enables SWIFT’s clients to easily and cost-effectively cross-reference BIC reference data to the public LEI database.
The new directory will particularly appeal to securities service providers as it will simplify their derivatives trade reporting by making it easier to identify and match counterparties. Providers of securities are under pressure to improve reporting following the publication of regulation concerning unique identification of counterparties with LEI under the Dodd-Frank Act and the European Market Infrastructure Regulation (EMIR).
“As an issuer of the BIC, it is a natural step for SWIFT to provide a directory to facilitate BIC to LEI mapping,” said Patrik Neutjens, Head of Reference Data at SWIFT. “There is an increasing need for clear and accurate identification of legal entities engaged in financial transactions to monitor systemic risk across the global financial network. SWIFT’s new BIC to LEI directory will help provide this.”
The Business Identifier Code (BIC), also known as ISO 9362, is a standard format identification code for both financial and non-financial institutions allocated by SWIFT and is the most commonly used international identifier for financial institutions. SWIFT has issued more than 100,000 BICs worldwide.
In line with SWIFT’s announcement earlier this year that it is providing daily updates on its SWIFTRef platform, the BIC to LEI directory will be updated on a daily basis. SWIFT calculates that in a typical month approximately 1,400 BICs undergo one or more changes, so the directory will prove valuable for the financial institutions and corporations who process thousands of domestic and international payments daily, and face a major challenge in maintaining accurate, up-to-date data.
The BIC to LEI mapping is already available to existing SWIFTRef Bank Directory Plus customers, via the SWIFTRef website download portal, and through FileAct, SWIFTRef’s regular file messaging service. It can also be accessed in the online tool Bankers World Online. In addition, a separate directory with the BIC to LEI mapping is now available for SWIFTRef users.
For more information about SWIFTRef’s new BIC to LEI directory, please visit

NZX Launches Natural Gas Market

NZX Launches Natural Gas Market

Date 02/09/2013
NZX is pleased to announce that having received the necessary operating approvals, its spot gas market is now open for trading.
The launch of NZX’s gas market has been dependent on successful completion of an Interconnection Agreement with Maui Development Limited, the owner and operator of the Maui Pipeline.
The market features monthly, weekly, daily and intraday products focused on a ‘virtual welded point’ on the Maui pipeline. The chosen architecture is intended to concentrate liquidity and is compatible with existing shipping arrangements.
The final rules for the new market are now available, and participants may now register for the market, and commence trading.
NZX Head of Energy Erich Livengood commented: “We are delighted to receive the necessary operating approvals for the new gas market, and look forward to working closely with industry participants in coming months to grow and develop this important market.
“Potential participants will now be reviewing the final rules and market requirements, and we will be working with them to register and begin trading from today.”
The market is hosted at
NZX initially announced it would operate a gas market on 5 March 2013.
NZX continues to look for opportunities to use its existing market operations infrastructure to enable a broad range of industries to better manage their risk.

The Stock Exchange of Thailand (SET), together with other stock exchanges in Greater Mekong Subregion (GMS) – Cambodia, Hanoi, Hochiminh and Laos -, announced that they will collaborate to strengthen the region

The Stock Exchange of Thailand (SET), together with other stock exchanges in Greater Mekong Subregion (GMS) – Cambodia, Hanoi, Hochiminh and Laos -, announced that they will collaborate to strengthen the region

BANGKOK, 29th August The Stock Exchange of Thailand (SET), together with other stock exchanges in Greater Mekong Subregion (GMS) – Cambodia, Hanoi, Hochiminh and Laos -, announced that they will collaborate to strengthen the region’s competitiveness and raise its global profile during the first GMS exchanges CEOs meeting ‘GMS Focus’, hosted by SET, as a platform for closer collaboration among GMS exchanges.

After the meeting, five GMS exchanges agreed in principle to initiate GMS capital market developments in three areas: capital market education, corporate governance and market information sharing. Charamporn Jotikasthira, President of The Stock Exchange of Thailand, said: “This first GMS exchanges CEOs meeting reflected the shared vision and regional support in building a closer network for GMS capital markets cooperation. All GMS stock exchanges are confident that a closer collaboration among markets is a major step in strengthening our capital markets’ presence and enhancing our capital market quality.”

Hong Sok Hour, CEO of Cambodia Securities Exchange, said: “This meeting was very fruitful and productive, enabling us to further develop our markets and contribute to the prosperity of the GMS. During the meeting, all exchanges agreed to set up GMS information sharing mechanisms among exchanges that I am strongly confident that it will help regional development and increase visibility of GMS exchanges to regional and international investors.”

Tran Van Dzung, CEO of Hanoi Stock Exchange, said “GMS securities exchanges are playing increasingly important roles in supporting the economic development of our respective countries and the region. Our collaboration’s goal is to develop a strong and healthy GMS capital market based on good quality of corporate governance of exchanges and listed companies.” Tran Anh Dao, Deputy CEO of Hochiminh Stock Exchange, said “HOSE highly appreciate SET as the host of this GMS Exchanges Networking for enhancing relationship among exchanges in the region. We take this opportunity for deeper understanding on collaboration mechanism and future plan”

Dethphouvang Moularat, Chairman & CEO of Lao Securities Exchange, joining Thailand Focus for the third time, said: “This meeting is an important way to build strong links of friendship among GMS exchanges and show how the exchanges can work together effectively. One joint operation that was mutually agreed from the meeting is to initiate “GMS Capital Market Education Forum” that would become the key driver for strengthening the capital market education development in Mekong region. This meeting shall contribute narrowing the developing gap among GMS countries and can smoothly establish the AEC”

The CEOs exchanges also participated for the second time in Thailand Focus 2013: Connecting to New Investment Frontiers, the annual flagship investment seminar in Thailand, to present their growth potentials to foreign funds and participate in 19 one-on-one meetings in the event during August 28 and 30, 2013

DCE ACCELERATES YARN’S DEVELOPMENT (courtesy of etradingasia)


Wang Tiankai President of the China Textile Industry Federation, CTIF
CCTA and CATA Hold “Expert Forum on Yarn Futures”

Recently, the China Cotton Textile Association (CCTA) and the China Commercial Circulation Association of Textile and Apparel (CATA) held the “Expert Forum on Yarn Futures” in Dalian to discuss the development of the yarn futures and the contract rules of yarn futures of Dalian Commodity Exchange (DCE) with the attendance of more than 30 leading officials and experts from industry organizations and the enterprises of spinning, weaving and distribution. Wang Tiankai, President of the China Textile Industry Federation (CTIF), attended the forum and made the concluding speech, and the forum was presided over by Xia Lingmin, Vice President of the CTIP. It was the common call of all the forum attendees to introduce the yarn futures timely in a bid to form the fair market prices and provide the enterprises with a hedging instrument under the new situation of the government intensifying the regulation of the cotton market and the imported yarn having impact on the domestic market. The listing of the yarn futures with great significance is expected to serve the industries effectively.

As DCE submitted the application to the China Securities Regulatory Commission (CSRC) for the establishment of the yarn futures project this February, the emerging of the development of the yarn futures has drawn great attention from the textile industry. Li Zhengqiang, General Manager of DCE, briefed the forum on the 20 years’ development of DCE and the original purpose of developing the yarn futures at DCE. He said that in the construction and development of the futures market, DCE has always kept to the orientation toward serving the real economy, guarding against the market risks, safeguarding the principle of “openness, fairness and equality” in the market, and “equal emphasis” on both developing new products and supporting existing products. As the enterprises of the textile industry are faced with various market risks during the economic transition, DCE has applied for the establishment of the yarn futures project on the basis of thorough research to materialize the principle of serving the real economy by offering the relevant products on the futures market and providing the entity enterprises with risk management instruments. He also said that in the course of development, listing and operation of the products, DCE has always prioritized the contact with the industrial enterprises and the service, support and encouragement for the enterprises to make use of the market, and the same principle will be upheld in the development and listing of the yarn futures.

Zhu Beina, President of the CCTA, said that previously DCE and the CATA had jointly carried out survey and demonstration for the development of the yarn futures, visited enterprises of various sizes in textile distribution, cotton yarn production and weaving through purchase of yarn, and solicited the opinions of relevant national ministries and commissions. It was widely believed in the visits and exchanges that the listing of the yarn futures would be conducive to the development of the textile industry and related enterprises. As the spinning is the foundation for the textile industry, it was hoped that the introducing of the yarn futures could enhance the power of China, an important yarn manufacturer, in speaking in the market, the authoritative yarn price index could be released to serve the enterprises when the time is ripe and function as guidance in the international market, and the relevant textile enterprises could get aid in effectively predicting and judging the market. In the survey, it was suggested that the problems such as the subject matter of the yarn trading and the manners of delivery should be settled in the designing of the contract rules, and it was hoped that the cotton yarn market could maintain a steady running in the future so as to ensure the entity enterprises could successfully achieve the hedging objective and effect.

In his concluding speech, President Wang of the CTIF said that the CCTA, the CATA, and DCE had made a lot of effective efforts in the development of the yarn futures; at the forum the cotton spinning enterprises welcomed and supported the listing of the yarn futures with some enterprises even more eager for the futures to be launched as soon as possible, and the listing of the futures was in line with the current situation of the cotton yarn market. In particular, Wang pointed out that in the futures market, the CTIF was more concerned about the enterprises’ attitude and whether the risks of the futures market could be put under control effectively. The functions of the futures market could not be achieved without speculation but the market must not have too much speculation. In this regard, we were deeply impressed by DCE’s high level and capacity of risk control. He also said that at the forum the attendees provided pertinent opinions and suggestions on the contract rules, and to improve the operation effect after the listing of the contract, it was suggested to organize the knitting and other yarn-dependent enterprises to further the specialized research. He also hoped that DCE and the CTIP could maintain active communication and in-depth cooperation and push forward the relevant work.
Enterprises need the yarn futures under the new situation. In recent years, under the influence of the factors such as the national policy of cotton purchase and storage, the quota system of imported cotton, the impact of imported yarn, the weak downstream demand, the appreciation of the RMB exchange rate, the rising labor costs, and the financing difficulties of the SMEs, the domestic textile enterprises are in the face of various difficulties in business. According to the sources, in the first half of 2012, the textile enterprises in some regions reported a loss of RMB 2,000 in producing a ton of yarn, 105 key enterprises recorded a drop of 52.1% in profits year on year, and nearly half of the SMEs had to halt production due to too high costs.

According to an enterprise representative from Hubei Province, the implementation of the national policies of purchase and storage in the last two years has resulted in the disagreement of the prices of cotton yarn and cotton, and with the lingering weak demand and the coming of the off-season, the enterprises are faced with high risks with no hedging means. Since March 2011, the spot price of yarn has fallen from the highest RMB 39,200 per ton to RMB 25,400 per ton, a drop of more than 30%, and with the fierce price fluctuations, the enterprises need the yarn futures to manage risks. Experts from cotton and textile enterprises in Hebei Province, Jiangsu Province, and Fujian Province believe that China is a large yarn producer and consumer in the world. The continuously severe fluctuation of yarn prices in recent two years has made it necessary for yarn to be listed in futures market. They said that their companies both produce and consume cotton yarn and they can lock profits in advance through futures market. If used wisely, such method can help them to achieve zero-inventory operation, thus playing a positive role in solving the capital occupying issue and in speeding up the capital turnover of the enterprises. Meanwhile, the launching of yarn futures will help to expand enterprises’ operational channel.

Providing the market with open and transparent prices to lead production is also one of the common concerns of the attending enterprises. Representatives of the manufacturing and circulation enterprises from Guangdong, Dalian and other provinces said that futures market has two basic functions, namely, price-finding and hedging. Under the current situation of the yarn industry, the yarn futures should first give full play to its price-finding function and form an open, transparent, and leading price. As there exist numerous varieties and different prices in the yarn market, a representative price is badly needed to guide the market operation. And it is hoped that the launching of yarn futures will greatly promote the current operational order of the cotton and textile market.

The representatives also believed that from the industrial level, China has over 4,000 above-scale manufacturing enterprises. However, the output volume of the largest cotton manufacturing enterprises only takes up 2% of the total. And the launching of cotton yarn futures will help to facilitate the structural adjustment and the industrial upgrading of the industry through price information. It is the common aspiration of the attending representatives to forge a star variety, build an international market pricing center, and better serve the industry development. They all believed that as China’s manufacturing and consuming volume of yarn takes up about 50% of the total in the world, there will be broad development prospects for the yarn futures. Besides, DCE has relevant experience in successfully developing the plastic, coke, and other varieties which have failed or have not been developed in foreign countries. It is hoped that the yarn futures will become a star variety after its launching and thus help to make DCE an international market pricing center.

Yarn futures have basic qualifications for listing. “During the market research at the earlier stage, we found that the yarn futures have already obtained the basic qualifications for listing. First, the yarn market has a high marketization level with full price competition and no market monopoly; second, there is a sound standard for yarn, which brings great convenience for yarn checking; third, the current yarn futures trading is very smooth without any policy restriction.” said Zhu Beina, Chairman of the CCTA, when introducing the research and investigation of the yarn futures faced with the expectation of enterprises.

An official of the agricultural products division of DCE further introduced the developing and listing requirements of the yarn futures. He said that apart from its high marketization level and its convenience for standardizing, the cotton yarn variety has other advantages in terms of its market constitutions, such as its large market scale, sufficient delivery amount, frequent price fluctuation, high regional correlation, convenience for storage and transportation, and clear trading flow. Therefore, its listing is of great feasibility. In recent years, DCE has strengthened its efforts on screening relevant variety system in the fields of “agriculture, farmer, and rural area”. It has chosen the yarn variety as its key strategic variety for researching and developing and set up a yarn futures research group to promote relevant work in the latter half of 2012. Since the beginning of this year, DCE has, cooperated with the CTIF, gone deep in the cotton and textile enterprises of various provinces and cities to do study and research and participated the industrial conference organized by the CTIF to exchange views on developing yarn futures with spot enterprises. At present, based on the earlier research, DCE has initially formed the contract and rule design plan for the yarn futures and will submit it to the current symposium for discussion.

At the symposium, the attending representatives discussed the existing plan and put forward advices and suggestions on contract rules, delivery quality, and improving inspection method. According to the current plan, the DCE yarn futures contract will initially make the carded 32 yarn and the carded 40 yarn as the trading objects and expand the delivery scope through the premium and discount. Given the actual situation and the developing trend of the spot market, DCE will establish the futures delivery quality standard based on the international standards. And considering the manufacturing characteristics of the spot enterprises, DCE will set up 12 contract months for the convenience of spot enterprises’ operation.

“Hope that industrial enterprises can come up with more advices and suggestions. Contract rule design is only the first step of a variety’s listing in the market. The major indicator to test a contract is whether enterprises can accept and effectively use the contract after the variety’s launching. We hope to forge an everlasting variety and we will have long-term cooperation with the industrial circle afterwards. Next, having fully absorbed all advices and suggestions, DCE will further its research and demonstration in the cotton and textile industry and continue to improve the contract rule, so as to make the yarn variety to be listed as soon as possible and better serve the industry.” said Li Zhengqiang at the end of the symposium.


Ageing systems limit North American buy-side offerings

Ageing systems limit North American buy-side offerings

More than four of five North American asset managers rely on complex workarounds to support derivatives trading through aging middle- and back-office systems, a poll has found.

A poll conducted by investment management consultancy SimCorp has found 82% of North American buy-side respondents rely on cumbersome workarounds to support derivatives trading, which limits firms’ ability to engage in new product offerings.

A further 52% said their current systems required more than two months preparation to launch a new investment product and 22% said launching new derivatives products took four months or longer. In addition, 4% of firms said current systems did not allow for any new investment products to be launched.

Over one-third of respondents said the accuracy of client reporting was compromised due to the fragmentary, disconnected way that transactions were processed through legacy systems.

SimCorp polled nearly 135 executives from 84 North American buy-side firms.

David Kubersky, managing director for SimCorp, said firms should look to introduce an investment book of record to serve as a single source of information spanning front- to back-office operations.

“This system should offer integrated workflows in managing cash, margins, deliverables and collateral, accurate reporting and the ability to quickly introduce new products to market,” he said.

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