DCE ACCELERATES YARN’S DEVELOPMENT (courtesy of etradingasia)


DCE ACCELERATES YARN’S DEVELOPMENT

http://asiaetrading.com/dce-accelerates-yarns-development/

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.

inShare

Advertisements

KCG Futures to leverage Getco tech in new offering


KCG Futures to leverage Getco tech in new offering

http://thetradenews.com/news/Asset_Classes/Derivatives/KCG_Futures_to_leverage_Getco_tech_in_new_offering.aspx

Knight Capital Group’s (KCG) futures division plans to utilise Getco technology to enhance its offering and focus on high-frequency trading (HFT) and hedge fund business.

Following the merger of Knight Capital and Getco, which formally completed at the end of June, futures commission merchant (FCM) KCG Futures said the business’ direction would be a mix of continuity and change, as it seeks to maintain service levels while also leveraging the advantages of being a combined group.

Carl Gilmore, managing director of KCG Futures, said: “Maintaining continuity in the services we provide is important, but we also want to integrate our offering into the larger group, such as bringing our services to customers in other parts of our business.

“But one of the biggest benefits of the merger with Getco is the strength of the technology that KCG can now offer. There’s a real need in the futures space right now for better technology and this will be a key part of where we anticipate the business will go.”

Listed derivatives volumes, including futures, have suffered in the wake of the financial crisis, and figures from the Futures Industry Association (FIA) show a fall of 15.3% between 2011 and 2012 to 21.17 billion contracts traded worldwide. According to the FIA, a decline in interest rate futures due to the 0% interest rate environment that has prevailed in the wake of Lehman Brothers collapse is largely responsible for depressed volumes.

However, Gilmore believes there is reason for optimism: “I think we’re now on an upswing after five difficult years for FCMs. We think there’s a real opportunity now to push into highly customised offerings, which is what many clients are now demanding in the futures space.”

He also notes that market participants are starting to return to the futures market and improving economic conditions in the US, particularly the tapering of the Federal Reserve’s quantitative easing program, bode well for the asset class.

KCG Futures is also keen to exploit opportunities with HFT and hedge funds by heavily focusing on its automation.

“We really want to be the go-to destination for highly sophisticated investors, and for them it is all about how you use your technology to operate efficiently, so our goal is to offer our services to clients in as automated a way as possible.”

KCG Futures is formed primarily of Knight Capital’s futures division, which itself was created when Knight bought the futures business of trading services group Penson Worldwide in May 2012.

Nasdaq OMX’s European derivatives subsidiary eyes new products


Nasdaq OMX’s European derivatives subsidiary eyes new products

http://www.efinancialnews.com/story/2013-08-23/nasdaq-omx-nlx-third-party-listings?omref=email_TradingTechnology

23 Aug 2013 Updated at 12:40 GMT

 

As Nasdaq OMX’s US securities market deals with the fallout from a three-hour outage on its platform yesterday, across the Atlantic its new European derivatives subsidiary is looking for ways to build its business, potentially through the listing of new third-party contracts.

NLX, which launched in June and offers trading in popular long and short-term interest rate derivatives, said it would be willing to consider listing instruments developed by external providers.

Charlotte Crosswell, chief executive of NLX, told Financial News earlier this week: “At NLX, we have the infrastructure, vendors and route to clearing already in place. It’s relatively easy for us to list new products quickly. This gives us the flexibility in how we approach listing new types of products. You might have a new product that works well, but then you need to have the industry backing and bring it to market at the right time – it can be challenging.”

The move comes as US-based Eris Exchange is considering ways to bring its interest rate contracts to Europe and as GMEX Group, a new derivatives venture run by former Chi-X Europe chief operating officer Hirander Misra, is looking at creating new methodologies for developing products across multiple asset classes.

The emerging regulatory environment for swaps trading is presenting opportunities for firms to develop new types of derivatives that offer alternatives to over-the-counter derivatives.

The rules will push OTC derivatives that can be standardised onto electronic trading platforms and through clearing houses. This has led some to look to products that replicate OTC exposures through an exchange-traded contract.

Under the Dodd-Frank Act, the obligation to clear swaps has already kicked in for most US market participants. Exchanges including Eris and CME Group have launched swap futures that mimic interest rate swap contracts in an exchange-traded environment. Mandated trading of OTC derivatives contracts on trading platforms known as swap execution facilities will start in the US from October 2.

The swap futures from Eris and CME are still gaining traction, say market participants.

Nasdaq-listed stocks were halted for almost three hours on Thursday because of a problem with the Securities Information Processor, a system that consolidates and disseminates prices to US markets, according to a statement from Nasdaq OMX.

The glitch impacted the data feed that distributes pricing information for securities listed on Nasdaq and is not believed to be linked to the exchange’s core technology. The bourse said it had resolved the issue within 30 minutes and spent the remainder of the time coordinating with other market participants and regulators to ensure the orderly resumption of trading.

NLX runs on Genium Inet technology, which incorporates the platform that Nasdaq acquired when it purchased the OMX Group of Nordic exchanges in 2007. Nasdaq’s US markets run on Inet, which it bought from agency broker Instinet in 2005.

–write to anish.puaar@dowjones.com and follow on Twitter @anishpuaar

Moscow Exchange and Eurex to cooperate on FX trading


Moscow Exchange and Eurex to cooperate on FX trading

http://www.automatedtrader.net/news/at/144391/moscow-exchange-and-eurex-to-cooperate-on-fx-trading

First Published 21st August 2013

Next step in partnership between Moscow Exchange and Deutsche Börse Group/Futures on EUR-RUB and USD-RUB to trade on Eurex.

Moscow Exchange and Eurex, the derivatives arm of Deutsche Börse Group, have signed a cooperation agreement for the trading of foreign exchange (FX) derivatives. Through this new element of the partnership between Deutsche Börse and Moscow Exchange, Eurex Exchange will launch Euro/Russian Rouble and U.S. Dollar/Russian Rouble FX futures on its trading system in Q4 2013.

Alexander Afanasiev, Chief Executive Officer of Moscow Exchange, and Andreas Preuss, Deputy CEO of Deutsche Börse and CEO of Eurex, signed a cooperation agreement for the new derivatives products in Frankfurt/Main today. Both partners will also jointly promote the launch of these two FX futures.

“We continue to deepen our partnership with Deutsche Börse, and are working together closely to provide our market participants with new instruments. Today we agreed to launch Rouble FX futures in Frankfurt. This opens up exciting new trading and hedging opportunities for investors. Also, this autumn, Moscow Exchange will launch futures on five German blue chip stocks. Cross-listing arrangements between Deutsche Börse Group and Moscow Exchange allow our clients to build new trading strategies and better manage their risks. We believe that our joint initiatives with Deutsche Börse will strengthen national markets and facilitate the continued development of Frankfurt and Moscow as financial centers”, said Moscow Exchange CEO Alexander Afanasiev.

“We are very pleased to have reached the next milestone of our partnership. This new cooperation fits perfectly into our goal to constantly expand our product offering as it will complement our planned FX product suite”, said Andreas Preuss, Deputy CEO, Deutsche Börse and CEO, Eurex.

Eurex will launch FX futures and options for six currency pairs on 7 October 2013. According to today’s agreement, Eurex’s product suite will be complemented with cash-settled futures for both Euro/Russian Rouble and U.S. Dollar/Russian Rouble currency pairs in Q4 2013. Upon expiry, Eurex’s Rouble futures will be settled using settlement prices provided by Moscow Exchange. This procedure is intended to reinforce the integrity of the futures contracts and provide investors with confidence that the settlement price is both fair and accurate.

In Q2 2013, the average daily volume for both products on the Moscow Exchange amounted to over 2 million contracts with a notional value of US$2.1 bn. In 2012, U.S. Dollar/Russian Rouble futures were the third most popular foreign exchange futures contract globally among traded currency futures, according to the Futures Industry Association.

From theOTC Space – CDS Futures | Can This Pig Sing?


http://theotcspace.com/2013/08/14/cds-futures-can-this-pig-sing-2/

CDS Futures | Can This Pig Sing?

August 14, 2013 by pttmonitor 0 Comments

The $24.7 trillion Credit Default Swap market (2012 Gross Market Value, According to ISDA and BIS) is one of the last untapped exchange-traded derivatives markets.  The question remains is the market ripe for a CDS futures contract, or as Mark Twain famously put it, “Never Try To Teach A Pig To Sing.  It Wastes Your Time And Annoys The Pig.”  So, can this pig finally sing?

The InterContinentalExchange (ICE) believes it is the right time and launched a CDS Futures contract (Ticker: WIG) on June 17, 2013.  The contract is based on Markit’s liquid CDX.NA.IG 5Y series.  The contract is complementary to the current “on the run” OTC traded CDX.NA.IG 5Y swap as the futures contract is priced on the theoretical value of the next CDX.NA.IG series.  This “When Issued” structure creates an option valued on the next CDS series.  In other words, it is a vehicle to hedge near term macro-economic credit risk (as opposed to immediate term credit risk with an OTC swap).

The chart below shows trading in the Sep 13 CDS future.  Although less than impressive, it is important to look back to the introduction on US Treasury futures in 1976/1977 as a point of reference.

cds-futures1

Initially, Treasury futures (and a sister GNMA future) were not a success.  When they finally launched, volumes were only a few hundred contracts per day.

Low volume on this new contract is not a surprise, given the “when issued” impact of the CDS future and the effect on final settlement.  Many counterparties may be on the sidelines until the new contract goes through the first final settlement.

Is Dodd-Frank & EMIR Equal To The End of Britton Woods?

OTC swaps and specifically CDS’ do not have a “Nixon Shock/end of gold standard” fracture with currency and inflationary volatility.  These waves of volatility served as the “tipping point” for currency and interest rate futures.  Like the currency markets of the early 1970’s, OTC CDS swaps are a custom forward market.  Thus, the CDS future is in many ways similar to currency futures as both vehicles create standard models for the exchange of counterparty risk.

As market forces will not drive the adoption of a CDS future, will regulation and regulatory pressures do it?  Title VII of Dodd Frank changed the execution, clearing, and capital structures of the CDS swap market.  Let’s take a look at changes in the OTC market as compared to the ICE futures.  First and foremost, margin and transaction costs are now highest for customized products and lowest for standardized exchange-traded products.

Category Bilateral Swaps OTC Cleared Futures
Liquidity Liquid Highest Liquidity Illiquid
Margin Highest, TBD Higher Lowest
Margin Calculations 10-day VaR 5-day VaR 2-day VaR
Transaction Costs Basel III Capital Requirements FCM and associated LSOC costs FCM Margin/Cost of Carry
Termination/Compression Intra-party and Compression Intra-party and Compression Exchange
Valuation and Reporting Intra-party Intra-party  & SEF Exchange

Dodd Frank, EMIR, and Basel III changed the rules but internal momentum is still hard to overcome.  Any OTC CDS futures development must be co-dependent with the existing OTC swap market.  Exchanges are the ultimate networked organization where liquidity begets liquidity.  Therefore, for the futures to gain liquidity, the following Tipping Point actions must occur simultaneously.

  1.  Outstanding rules and margins for non-cleared bi-lateral swaps must be completed and implemented.  This includes implementation of Category 3 participants in centralized swap clearing.
  2. Banks must decide (or be convinced as part of increased CDS market scrutiny) to utilize CDS futures.  This benefits banks on the Basel III capital requirements side and the overall CDS market in terms of transparency.
  3. For parties interested in hedging credit risk on a macro-level, substitution value of the CDS future must be greater than the disincentive of a new, riskier product.  In other words, the perceived opportunity cost of trading CDS futures is very high.

June 2013 was a volatile period.  Volatility was not just related to central bank intervention and QEIII discussions.  Operational volatility in the OTC market was the result of new rules and margins for Category 1 and 2 participants.  In hindsight, given the confusion around central clearing, market participants are still trying to adjust to the fluidity of new swap rules rather than eyeing a complementary credit risk solution.

In this context, it is important to not underestimate the gravitational pull of the existing swap market.  Traders, banks, and counterparties have underlying relationships with swap desks (and not necessarily with a futures counterpart).  Transacting with two desks lowers your relative importance in a market that depends on relationships.

So, can this pig sing?  Well, we don’t know yet.  Once the music director finishes writing the final score and the band makes an entrance, then we’ll know whether this little piggy has a market or this little piggy gets none.

Seth Berlin, Principal, Performance and Thinking Technologies

Seth Berlin is a Principal Strategist at Performance Thinking & Technologies (PTT).  PTT focuses on risk modeling, compliance, and investment operations for private funds.

Horizon Software introduces ETF market making and algo trading in China


Horizon Software introduces ETF market making and algo trading in China

http://www.atmonitor.co.uk/news/newsview.aspx?title=horizon-software-introduces-etf-market-making-and-algo-trading-in-china

 

Published on   Jul 17, 2013

logo

Horizon Software, the provider of electronic trading solutions, has announced that a leading securities house in Shanghai has chosen Horizon Delta One Trader and Horizon Algo Trader as their ETF market making and algo trading solution in China.

Horizon Delta One Trader is a low latency order and execution management system dedicated to Delta One products. The solution implements trading strategies, such as statistical and index arbitrage, as well as making market for Delta One Products such as Futures, ETFs, CFDs, etc.

“We understand that China is a growing and evolving market and things are changing and moving rapidly on a daily basis. And we see a huge potential there. Horizon Software is always willing to understand our clients’ needs and in turn providing excellent solutions that can accommodate them.” said Jean-Marc Delfarguiel, CEO of Horizon Software.

“It’s challenging and the road ahead is not easy; but we believe our solutions are the best. Providing the first ETF market making system in China is a strong proof of our solutions within this space.” noted Sylvain Thieullent, APAC Director, Sales, Marketing and Client Services.

“Horizon Software is delighted to be chosen by our client in Shanghai. We are looking to further expand our footprint in China.” said Marco Chung, Head of Sales for North Asia. “And we are committed to provide the sophisticated electronic trading solutions for our clients in the region, be it market making, algo trading or order and execution management.”

SunGard provides Fox River algos to Silexx EMS


SunGard provides Fox River algos to Silexx EMS

http://www.automatedtrader.net/news/at/143822/sungard-provides-fox-river-algos-to-silexx-ems

SunGard’s Fox River Execution solutions algorithms now available on Silexx’s Obsidian platform

SunGard’s Fox River Execution Solutions has made its algorithms available to users of Silexx’s Obsidian execution management system (EMS). By providing Silexx customers access to Fox River’s entire algorithm suite, professional traders and risk managers using Silexx will now have the tools to help improve execution quality, as well as provide Fox River customers with the ability to access the Silexx EMS.

“SunGard’s Fox River algorithms will help provide Silexx traders and risk managers with improved fill trade rates and best price and execution. In addition, Silexx can offer customers a cost-effective, front-end gateway to Fox River algorithms.” – Thomas Frey, president, Silexx Financial Systems

“The availability of Fox River’s algos on the Silexx platform will help traders leverage innovation to achieve growth targets by reducing trading cost and risk while increasing execution performance.” – Bob Santella, president, SunGard’s brokerage business

Silexx’s Obsidian platform provides the ability to dynamically generate an interface for all of Fox River’s algorithm parameters, giving users the ability to integrate their algorithms on the Obsidian platform and control the parameters of every algorithm

DGCX set to offer Sensex futures contract 5th July 2013


DGCX set to offer Sensex futures contract tomorrow

Abdul Basit / 4 July 2013

Dubai will be first and only place in the Middle East and North Africa (Mena) region once it will list and offer Indian stock index futures contract on July 5.

The Dubai Gold and Commodities Exchange (DGCX) along with Asia’s oldest bourse Bombay Stock Exchange on Wednesday announced the launch of Sensex Futures contract.

DGCX Sensex Futures contract is based on the S&P BSE Sensex, the blue-chip stock index of India’s leading bourse, the Bombay Stock Exchange (BSE). It is an index of the top 30 companies listed on the Indian bourse.

These futures can be traded from 7:00am to 11:30pm (GMT +4), Monday through Friday. The new contract will be denominated in US dollars and settled in cash.

The new contract is aimed to tap demand from the large Non-Indian Residents (NRI) in the Gulf region, DGCX chief executive officer Gary Anderson told reporters at a news conference in Dubai. DGCX is not competing with BSE Sensex in India, but giving access to more people in the Middle East and specially Gulf countries, Anderson clarified.

He mentioned that the exchange is planning to introduce more products with BSE tie-up most probably this year.

“The contract is part of a planned expansion of our Emerging Market product offering, and will offer an exciting trading option for investors seeking exposure to one of the world’s largest Emerging Markets. While the retail segment is a key target market, we are also anticipating strong interest from a wide range of regional and international investors including UNHWIs, professional traders and institutional investors,” Anderson said.

DGCX’s new equity futures contract will target retail participants including NRIs across the world, existing DGCX members focused on retail offerings, the NRI desks of banks, professional traders trading and arbitraging Indian markets offshore and large foreign institutional investors seeking exposure to Indian equity markets.

BSE managing director Ashishkumar Chauhan added that the new index contract will appeal to the Mena’s huge Indian population. “We don’t see any other tie-up for futures contract in the region,” Chauhan said.

“This launch is a key milestone for us since it is the first time we have partnered with an exchange in the Mena region to launch an equity-based derivatives product. DGCX Sensex Futures will provide investors with an important tool for managing their portfolios benchmarked to BSE’s equity indices,” he said.

“Given that a large number of NRIs reside in the Middle East region, we are confident about the Sensex futures contract’s potential to generate high interest and trade volumes in line with interest in other jurisdictions,” he added.

DGCX’s product suite already covers a diverse range of sectors including precious metals, base metals, currencies and energy. This includes the world’s first Indian Rupee futures contract and the Middle East’s first Copper futures contract.

Plastic futures

Anderson disclosed that much-awaited plastic futures will be launched in the current quarter of 2013. “We are looking for plastic futures in Q3 this year,” Anderson said.In December 2008, DGCX first announced the launch of plastic futures from February, 2009. But postponed the plan citing market conditions.

“Although the product is ready to launch, the plastics industry needs more time to prepare for trading the contracts, particularly in light of the current economic climate,” DGCX said on February 5, 2009.

Anderson mentioned that the exchange is looking for tie-up with commodity exchange in China to launch it here in US dollar.

 — abdulbasit@khaleejtimes.com

ICE Clear Europe and NYSE Liffe complete clearing transition


ICE Clear Europe and NYSE Liffe complete clearing transition

http://www.automatedtrader.net/news/at/142989/ice-clear-europe-and-nyse-liffe-complete-clearing-transition

London – ICE Clear Europe and NYSE Liffe have announced the completion of the clearing transition for the London-based derivatives market of NYSE Liffe to ICE Clear Europe.

The clearing transition involved 43 member firms with 75 million contract sides being transferred to ICE Clear Europe and US $11.17 billion margin held at the clearing house on the morning of July 1, 2013. The combined guaranty fund for ICE Energy and NYSE Liffe Futures and Options is set at U.S. $1.2 billion from July 1, 2013. In addition, the migration covered over 1,300 products across bond, commodity, equity, index and interest rate derivatives and ten new settlement currencies for ICE Clear Europe.

Mark Ibbotson, Co-Chief Executive of NYSE Liffe said: “NYSE Liffe would like to thank its customers, ICE Clear Europe and LCH.Clearnet for completing this clearing migration in short order. We look ahead with confidence and excitement about the future as we deploy this new platform with ICE Clear Europe to innovate and deliver a first class service to our customers.”

Said Paul Swann, President and Managing Director, ICE Clear Europe: “ICE Clear Europe would also like to thank customers of NYSE Liffe for their effort and commitment over the last six months. We will continue to work closely with customers to respond to their requirements over the coming weeks and to develop new cleared products and capital efficiencies.”

Said Jeffrey C. Sprecher, ICE Chairman and Chief Executive Officer: “In just under five years, ICE Clear Europe has launched hundreds of new products and become a leading multi-asset clearing house in Europe, clearing more than 3 million contracts daily. I am proud of the efforts of our teams in completing this latest milestone.”

Jeffrey C. Sprecher, chairman & CEO, ICE

Jeffrey C. Sprecher, chairman & CEO, ICE

“I am proud of the efforts of our teams in completing this latest milestone.”

Transition from Swaps to Futures changing the global energy markets trading landscape


Before the Dodd-Frank Act was enacted, the choice for energy market traders was between swaps and futures, two separate, distinct markets, but due to new regulatory requirements, trading is increasingly occurring in listed-futures instruments, a dramatic structural shift forcing market participant

via Pocket http://www.commodities-now.com/reports/power-and-energy/14825-transition-from-swaps-to-futures-changing-the-global-energy-markets-trading-landscape.html July 01, 2013 at 06:36PM

OTC Clearing and Regulations

My views on OTCs and Regulations

Knowledge Problem

Commentary on Economics, Information and Human Action

northoceanscm

4 out of 5 dentists recommend this WordPress.com site

Aditya Ladia's Blog

Forex, Investment and Finance

Soltis Consulting, Inc.

Business Concepts, Ideas, and Information

intradaynifty

An Endeavor To Explore The Uncertanity

All About Cyber Security and Financial Technology and Beyond

The Future of FinTech and Cybersecurity are Interlocked: Creating the Secure Future of Financial Technology Today

symphony

Read about latest trends in Algo Trading in India or visit our website symphonyfintech.com

Trading Smarter

Thought Leadership, Insight and Product Information from TradingScreen

Tales from a Trading Desk

Noise from an Investment Bank

The Main Street Analyst

New York City Magazine! Marketing, Social Media, Business - Connecting The Dots!

NPA Computers

Bringing you info about the latest on Internet Technology

duanetilden

The Latest News on International Energy Trends, Green Building, Sustainability, A&E and Social Media

Trade News in Brief

International Economic Affairs & Relations / Regional & International Organizations / Global Commerce & Business

Letters from Nopeville

Nothing to do here

SingleDealerPlatforms.Org

The Single Dealer Platform Community

Carl A R Weir's Blog

A Cross Asset Connectivity and Finance WordPress.com site

%d bloggers like this: