Contents
View FIA’s press releases, as well speeches, testimony and statements on developments in the global cleared derivatives industry. FIA supports our member firms in adapting to market trends and meeting regulatory, legal and operational obligations through resources including industry-standard agreements, business continuity tools and industry data. Hong Kong Exchanges and Clearing Limited announced on Friday the launch of its first A-share derivatives product, … Below is the list of the Exchange Participants who provide online derivatives trading services for investors. As the margin required to carry a stock futures position is only a fraction of the value of the underlying stock, hedging/trading activities can be conducted with a smaller capital outlay.
We measure volume by the number of contracts traded, and there are many variations in contract sizes from one exchange to the next. At the global level, the total number of futures and options traded on exchanges worldwide rose to 24.78 billion contracts in 2015. That was not quite a record, but it was up 13.5% from 2014, giving the industry its highest rate of growth since 2010.
China’s rise in economic influence, market size, improved market accessibility and inclusion in global indexes have led more investors to consider a dedicated China allocation. The FTSE China A50 Index is a free-float adjusted, liquidity-screened index. It is reviewed quarterly in March, June, September and December to ensure the index remains representative of the underlying China market. The index offers the optimal balance between representativeness and tradability for China’s A Share market. It can be used as the basis for on-exchange and OTC derivative products, mutual funds and ETFs. Alphabet will announce its Q4 earnings on Thursday, Feb. 2 after the close.
FIA maintains a central repository of exchange-provided risk controls and practices in global cleared derivatives markets for the exclusive use of FIA members. Investors must therefore understand and be aware of the risks of trading in stock futures and should assess whether they are suitable. Investors are encouraged to consult a broker or financial adviser in respect of suitability for stock futures trading in light of the investor’s financial position and investment objectives before trading. A short position in a stock futures contract can be easily established, allowing investors to benefit from an anticipated fall in the value of the underlying stock. Hong Kong Exchanges and Clearing Limited is pleased to welcome today the launch of its new A-share derivatives contract, the MSCI China A 50 Connect Index Futures. This represents a significant step in the further expansion of HKEX’s derivatives product suite and reinforces HKEX’s role as the go-to marketplace for China trading and investments.
The other big contributor to SGX’s volume was its iron ore futures and options contracts. Volume in these two contracts more than doubled to a combined 7.33 million. These contracts also have a link to China, in that the price is based on delivery of iron ore to China where it is used in the production of steel. Commodity contracts, which include futures and options based on energy, agriculture, precious metals and non-precious metals, rose 22.6% to 4.6 billion contracts. That was a record amount of trading across these four categories, and on a combined basis commodity futures and options now account for almost 19% of global volume. Agricultural volume rose 18.1% to 1.6 billion contracts, energy volume rose 21.2% to 1.4 billion, and non-precious metals volume rose 46.8% to 1.3 billion.
HKEX Launches MSCI China A 50 Connect Index Futures
The following list of stock futures contracts are available for trading on the HKATS. Exchange Participants and their clients should be aware that stock futures contracts may or may not have market makers to provide bid / offer quotes for trading. Investors should exercise due caution and understand the liquidity risk involved when trading stock futures without market makers. Participants may sign up as market makers in some stock futures contracts, in which they would be responsible for providing firm bid/offer prices within a maximum spread limit. Some stock futures contracts may not have market makers to provide bid/offer quotes and their trading would be on an order-driven basis. Investors should be aware of the liquidity risk in these stock futures contracts and should exercise due caution before trading.
Intraday futures prices are delayed 10 minutes, per exchange rules, and are listed in CST. Overnight prices are shown on the page through to 7pm CT, after which time it will list only trading activity for the next day. Once the markets have closed, the Last Price will show an ‘s’ after the price, indicating the price has settled for the day. But this flat rate of growth masked several areas where specific contracts saw a notable increase in trading activity.
- All buyers and sellers of stock futures are required to post margin when opening a position in the market to ensure performance of the contractual obligations.
- Meanwhile in Europe, Eurex is having some success in its efforts to diversify its bond complex by adding futures on Italian and French government bonds.
- Explore FIA’s affiliate organizations and how they are working to further our collective mission in specific regions of the world or segments of the cleared derivatives industry.
- Albemarle Corporation develops, manufactures & markets engineered specialty chemicals worldwide.
- Trading in this contract more than doubled to 95.8 million, making it the exchange’s most actively traded contract in 2015.
Volume in DCE’s PP polypropylene contract reached 107.5 million contracts in 2015, up 333.9% from 2014, and volume in its LLDPE contract reached 119.9 million, up 169.4% from the previous year. That said, the rising level of activity in Asia-Pacific was spread across a large number of exchanges. Of the 28 derivatives exchanges in the region that were covered in our survey, 18 had double-digit increases in volume in 2015 and only six had a decline. In addition, the growth was spread across a large number of countries, including China, India, Korea, Singapore and Taiwan.
The index seeks to achieve more balanced sector exposure compared with a simple top 50 approach by avoiding overweighting of Financial or Consumer Staples. Trading volumes in China have a tendency to fall just as dramatically as they rise. But the rise of these four contracts signals the convergence of two broader trends that are likely to lead to further growth in the years ahead.
FTSE China A50 Index
As stock futures contracts are cash settled, there is no physical delivery of shares when the contract expires. At the heart of this trend has been China’s introduction of futures based on industrial commodities. This contract has grown by leaps and bounds, and in 2015 total volume reached 231.6 million contracts, approximately double the level traded in the previous year. As with all futures and options contracts traded on the HKFE, stock futures are registered, cleared and guaranteed by the HKFE Clearing Corporation , a wholly-owned subsidiary of the HKFE. HKCC acts as the counter-party to all open contracts which effectively eliminates counter-party risks between its HKCC Participants.
The widget shows the Last Price of the commodity you are viewing, compared to the average last price of the same commodity for the past 18 months. This section displays additional open contracts for the futures symbol you are viewing. Barchart Futures is a twice weekly newsletter that features a selection of the latest and best commodities commentary appearing on Barchart.com. Live educational sessions using site features to explore today’s markets. HKEX is also the global leader in metals trading, through its wholly owned subsidiaries, The London Metal Exchange and LME Clear Limited. This commodity franchise was further enhanced with the launch of Qianhai Mercantile Exchange , in China, in 2018.
FIA’s MarketVoice Podcast is at the center of the futures, options and derivatives markets. Through interviews with the top executives, regulators and visionaries, the podcast explores the major topics and upcoming trends. Losses from stock futures trading can exceed the investor’s initial margin funds and may require payment of additional margin funds on short notice. Failure to make payment may result in the investor’s position being forex reversal candlestick patterns liquidated and liable for any deficit resulting from or in connection with the liquidated position. All buyers and sellers of stock futures are required to post margin when opening a position in the market to ensure performance of the contractual obligations. If the margin falls below the stipulated level due to adverse price movements, the investor will be called upon to promptly restore the margin back to the original level.
Real-time last sale data for U.S. stock quotes reflect trades reported through Nasdaq only. Intercontinental Exchange’s volume fell 9.8% in 2015, weighed down by declines in the Liffe interest rate franchise and the Amex and Arca equity options businesses that it acquired from NYSE Euronext. CBOE Holdings and Nasdaq both suffered from declining volume at their U.S. equity options exchanges. Meanwhile in Europe, Eurex is having some success in its efforts to diversify its bond complex by adding futures on Italian and French government bonds. CME also saw continuing growth in the ultra version of its Treasury bond futures.
China A50 Futures News
This was also the fourth year of growth in commodity trading, and the ninth year out of 10. There are now more futures and options traded worldwide based on commodities than interest rates, and almost as many as individual equities. This year’s annual survey of derivatives exchange volumes highlights strong growth in the trading of futures and options at exchanges in China, India, Korea, Singapore and other parts of Asia.
It is a real-time, tradable index comprising the largest 50 A Share companies by full market capitalisation of the securities listed on the Shanghai and Shenzhen stock exchanges. More than half of NSE’s volume in 2015 came from options based on the CNX Nifty 50 index, a benchmark for the Indian stock market. Trading in this contract exploded in 2015, corporate finance rising 81.5% to 1.77 billion. This contract now ranks as the world’s most actively traded listed derivative. Comparisons with other equity index contracts are difficult because contract sizes fluctuate with the value of the underlying indices, but over the course of 2015 it was worth roughly one tenth of the E-mini S&P 500 futures traded at CME.
The total number of equity index futures and options rose 13.7% to 8.34 billion contracts, nearly reaching the peak of 8.47 billion set in 2011. Some of this growth came from markets where contract sizes are relatively small, such as the National Stock Exchange of India. But there was also growth in wholesale markets dominated by institutional investors, such as the Eurostoxx 50 futures and options traded on Eurex. This year’s survey is based on data collected from 78 derivatives exchanges. Volume includes futures and options that are traded on-exchange and submitted for clearing as well as contracts traded on- exchange.
China A connect – content
Even with contract innovation and growth, many of the top exchanges had a difficult year in 2015. CME Group’s overall volume edged up 2.6%, and most of that growth came from an 18.2% jump in the number of energy products traded at the New York Mercantile Exchange. Eurex was boosted by a 12.2% increase in volume in its European markets, but a decline in its U.S. equity options business reduced the overall growth rate to 8.3%. ZCE also offers futures on methanol, which is used as a raw material in the production of other industrial chemicals. Methanol futures were first listed in 2011, but in 2014 the exchange listed a new version of the contract that has grown rapidly in popularity. In 2015 total trading in the new contract jumped to 314.4 million contracts, making it the largest contract in the other category and one of the most actively traded contracts anywhere in the commodity markets.
All three Chinese commodity exchanges grew by double-digit rates and now rank among the 10 largest exchanges in the world. Its volume grew 61.2% to 3.03 billion contracts, second only to CME Group in our exchange ranking. beaxy exchange review Trading in the Long-Term BTP contract, which Eurex introduced in 2009, rose 47.2% to 25.5 million contracts in 2015. Trading in the Short-Term BTP contact, introduced in 2010, jumped 50.7% to 5.58 million.
China A50 Futures Discussions
However, due to significant sectoral biases, a simple top-50 approach can pose a challenge to investors who desire market-like exposures. The Index focuses on larger companies with high index weights, targeting securities with a high level of liquidity. It also seeks broad sector exposure for greater diversification, and high correlation and low tracking error with market benchmarks, such as the MSCI China A Index. To further support the development of the contract, HKEX is also offering a trading fee holiday until June 2022.
China provides global equity investors a unique set of opportunities and challenges as they evaluate a potential dedicated investment program and how to approach asset allocation from policy configuration to portfolio implementation. This widget shows the latest week’s Commitment of Traders open interest. The COT data, as reported by the US Commodity Futures Trading Commission ,is from Tuesday, and isreleased Friday by the CFTC. The CFTC then corrects and verifies the data for release by Friday afternoon. The Barchart site’s data is then updated, after the official CFTC release.
SGX FTSE China A50 Feb ’23 (HNG
Geographical location is determined by the jurisdiction in which the exchange is regulated, rather than the location of the parent company. The shift in the geography of growth meant that Asia-Pacific pulled ahead of North America as a percentage of global trading activity. Exchanges in the Asia-Pacific region accounted for 39% of the worldwide future and options volume, followed by North America with 33% and Europe with 19%. This was not the first time, however, that the Asia-Pacific region ranked number one in our annual volume survey. That breakthrough came in 2010, when a boom in equity index and commodity trading helped lift Asian exchanges at the same time that the after-effects of the financial crisis were weighing on the major exchanges in the U.S. and Europe. Asian growth went into reverse, North America started to grow again, and North America retook the lead in 2013.