sgx update · 2020. 1. 1. · sgx update 17 0 10,000 20,000 30,000 40,000 50,000 60,000 70,000 msci...

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Phillip Capital Inc. (A member of PhillipCapital) © 2015 All Rights Reserved

2017

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#TradingAsia




2017




What futures industry veteran does our MC most

resemble?

• John Lothian

• Bill Herder

• Terry Duffy

• Pat Kenny




OUR GROWING GLOBAL PRESENCE

16 countries > 1 billion Shareholder’s Equity > 1 million customers

Offer Clearing and Execution services for futures and equities




ASIA IS STILL GROWING

• China and India growth stories

• Forecast of World Economic Growth from 2.4% to 3.4%

• China stopped decelerating.6.9%

• Growth Rate of Asia up 5.5% last year was 5.3%.




NO. 1 PEOPLE ARE CRAZY ABOUT SPORTS




NO. 2 THE TRADING FLOOR OF THE FUTURES EXCHANGE




YOU WIN-I LOSE. I WIN -YOU LOSE




HOW WE LIVE OUR LIVES




TO LEARN KUNG FU IS TO LEARN “THE WAY”

1. There are two opposite forces- the ying and

yang

2. There is portion of opposite element in

each section.

3. It is a circle

4. There is harmony and a balance between

two opposites.

5. One cannot coexist without the other.




WHAT IT MEANS TO BE TWINS

This Photo by Unknown Author is licensed under CC BY

http://ccoli.com/tag/abby-and-brittany-hensel/2

https://creativecommons.org/licenses/by/2.5/




YING AND YANG




WHAT IS

COURAGE?

Courage is more than standing

up to what we believe.

Courage is also vulnerability in

disguise




BRUCE LEE’s QUOTE




2017




2017

WiFi Sponsor:



#TradingAsia

SGX Update

17

0

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rage

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Growth in FX suite

FX DDAV FX Month End OI

Increasing utility of INR and CNH futures

Growing screen liquidity in Iron Ore

0%

5%

10%

15%

20%

25%

30%

35%

020,00040,00060,00080,000

100,000120,000140,000160,000180,000200,000220,000

Monthly Iron ore Screen Volumes

T+1 T %T+1

NIKKEI 225 NIKKEI

DIVIDEND

FTSE CHINA A50 MSCI CHINA

MSCI INDONESIA

MSCI TAIWAN

MSCI SINGAPORE

MSCI THAILAND

MSCI MALAYSIA

MSCI PHILIPPINES

Nifty 50 MSCI INDIA BANK NIFTY

MSCI NTR contracts

launched on China, Taiwan,

Singapore, India, Indonesia and Singapore…..

Product Q1-Q2 Q3 % Chg

SET50 Index Futures 95,626 114,374 20%

Single Stock Futures 173,986 185,388 7%

Gold Futures 11,775 20,860 77%

SET50 Index Options 2,795 6,992 150%

Other 1,104 2,274 106%

Total 285,284 329,887 16%

SET50 Index Futures 284,382 334,741 18%

Single Stock Futures 1,515,979 2,178,647 44%

Gold Futures 40,862 45,855 12%

SET50 Index Options 39,816 63,429 59%

Other 18,280 16,134 -12%

Total 1,899,319 2,638,806 39%

Daily Average Volume

Open Interest

Data as of Sep 30, 2017 Unit: Contracts

Three Main Products

SET50 Index

Futures34%

Stock Futures

59%

Gold Futures

5%

A Strong Retail Based Market

Institution

38%

Individual

51%

Foreign

11%

Gain Momentum in Q3/2017

Korea Exchange

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Flagship

Products

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KOSPI 200 Futures

KOSPI 200 Options

Single Stock

Futures(132 stocks)

ADV(thousan

ds)

OI(thousand

s)

2017 Highlights Coming Up Next

Weekly KOSPI 200

Options

U.S. Product

Approval of KOSPI200 Options,

Single Stock Futures &

KTB Futures

Global Coverage

KRX Singapore Branch

Opened in September

2017

7th Anniversary of Eurex-KRX Link

Omnibus Account Introduced

June 26

20,000 Delta (End Client Base) / Post Allocation /

Foreign FCMs Hedge Only Account Introduced

Retail investors are allowed to join the

market without the initial deposit

CFTC Certification of Mini-KOSPI

200 Futures

August 2

US investors are now able to freely trade

KOSPI 200 Futures and Mini-KOSPI 200 Futures

through KRX members firms

30th August 2010

KOSPI200 Options on

Eurex

27th June 2016

EuroStoxx50 Futures on

KRX

28th November 2016

Mini-K200 Options on

Eurex

Over 150 million contracts

cumulated

as of 30th August 2017 (ADV 91,950)

Stamp Duty(0.3%) Exemption for

Korea Post

April 28

KRX expects increase of the arbitrage trading

by Korea Post in both KOSPI and Derivatives

markets

Multiplier

Reduction

March 27

Multiplier for KOSPI 200 F&O is halved

Lowering Entry Barrier for

Retail Investors Easing requirements for the initial deposit,

education and mock trading periods

30th August

2017

New Market Maker &

Market Contributor

Scheme

Flexible Incentives, More

Products

20 Turnover for Stock Connect is Buy + Sell

Source: Bloomberg, HKEX

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c-1

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Jan

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Feb

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Ap

r-1

6

May

-16

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g-1

6

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v-1

6

De

c-1

6

Jan

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-17

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Ap

r-1

7

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Au

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7

HSI Futures ADV Stock Connect NB ADT (RMB mn) Stock Connect SB ADT (HKD mn) Cash Market ADT (HKD mn)

Co

ntr

act

lots

Sto

ck C

on

ne

ct

Cas

h M

arke

t

Where the world comes to trade: China

250,000

0

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150,000

100,000

For Eligible Broker Dealer or Eligible Institutions




2017

WiFi Sponsor:



#TradingAsia

Which Asian country do you think has had the most

futures industry growth in the past year?

• China

• India

• Korea

• Japan

• Other

What futures industry sector do you feel is most

impacted by Asian volume?

• Currencies

• Commodities

• Equity indices

• Interest rates




2017

WiFi Sponsor:



#TradingAsia

25

Bursa Malaysia Derivatives Berhad (BMD)

Introduction to BMD

BMD is the only derivatives exchange in Malaysia.

Chicago Mercantile Exchange (CME) has a 25% of

the equity stake in BMD as part of the strategic

partnership with Bursa Malaysia Bhd.

ALL BMD contracts are listed on CME Globex® and

BMD has been granted registration as a Foreign

Board of Trade (“FBOT”) by the U.S. CFTC in

January 2015.

Overview on Futures on Crude Palm Oil (FCPO)

i. FCPO (25 MT per contract) is global benchmark for

edible oils and is physically delivered.

ii. Daily liquidity of over 32,000 contracts (800,000 MT)

and with 150,000 contracts (3.8m MT) open interest.

Overview on FBM KLCI Futures (FKLI)

i. The underlying for FKLI is FTSE Bursa Malaysia

Kuala Lumpur Composite Index (FBM FKLI).

ii. It comprises the largest 30 companies listed on the

Main Board of Bursa Malaysia.

Update from BMD

1. Forward Hedge of FCPO and OCPO for Non-

bank Non-resident Market Participants by Central

Bank of Malaysia (Supplementary Notice (No 3)

dated 11 Sept 2017): A non-bank non-resident market participants who

is registered with the Bank is allowed to enter

into forward contracts with a licensed onshore

bank or an appointed overseas office up to the

net open position (NOP) of its ringgit-

denominated FCPO or OCPO contracts

undertaken on BMD for the purpose of managing

its ringgit exposure arising from the FCPO or

OCPO contracts.

2. Decoupling of Participantship Under the framework, large and well-capitalized

financial institutions are now able to come into

our market as stand-alone clearing participants

and provide third-party clearing services.

The Latest News from Osaka Exchange

Celebrated 1st anniversary of the launch of New J-GATE,

the derivatives trading platform and new products

Extended Night Session to 3.30pm (CST)

Growing trade during the Night Session Introduced TSE Mothers Futures

Becoming more liquid

Items Description In

tro

an

d b

ack

gro

un

d

Intro • Taiwan Futures Exchange operates the sole futures and options marketplace in Taiwan

• Categories of futures and options products offered: equities, indices, FX, interest rates, and commodities

Market

Structure

• Similar to Taiwan’s stock market, retail investors play a very important role at TAIFEX

• Retail to institutional investors at TAIFEX: 50/50 ratio

• Trading volume of foreign investors surged more than double from 2014 to 2016

• Overall foreign participation (overseas+ foreign proprietary trading houses in Taiwan): 33.42% (2016)

Volume • For the third straight year, more than 200 million contracts were traded in 2016

• Close to 1 million contracts traded per day

Core

Products

• With its underlying index “TAIEX” benchmarking the performance of all listed stocks on Taiwan Stock Exchange, TAIEX Futures (TX) and

TAIEX Options (TXO) are among the most liquid and leading equity index contracts in Asia

• TXO: Over 167 million contracts were traded in 2016, making it the sixth most traded equity index options product globally

• Both TX and Mini-TAIEX Futures (MTX) set all-time-high volumes in 2016 and, together with TXO, accounted for over 90% of the volume at

TAIFEX

Hig

hlig

hts

20

16

~1

7 Products

• To fulfill the trading needs for RMB products, TAIFEX launched RMB FX Options (USD/CNT and USD/CNH FX Options), Taiwan’s first currency

options and the world’s first exchange-traded offshore USD/RMB FX options, in June 2016

• In November 2016, TAIFEX launched two more FX futures – EUR/USD and USD/JPY FX Futures

• Following the listing of TOPIX Futures in 2015, TAIFEX introduced Nifty 50 Futures also in November 2016

• In May 2017, with a licensing agreement signed with CME Group, TAIFEX introduced Taiwan Dollar-denominated futures on the S&P 500

and the Dow Jones Industrial Average (DJIA) indices

• On international collaboration, TAIFEX licenses DBAG to distribute market data and information products to international clients

Mechanism

• Along with DJIA and S&P 500 Futures, TAIFEX initiated an after-hour trading session from 15:00 or 17:25 to 05:00 the next day

• By extending its trading to 19 hours, TAIFEX increases the overlap with markets in the US and Europe, enabling both domestic and global

investors to manage their risks outside of regular trading hours of Taiwan

• Within 3 months of launch, volumes during the after-hour session were equivalent to 8.5% of the regular session

Technology

• TAIFEX built its trading system in-house considering flexibility and cost-efficiency

• Completed a major upgrade to the 5th Gen, and migrated IT platform from Unix-based to Linux-based in December 2016

• This improved the system by doubling the capacity from 24,000 to 48,000 orders per second and decreasing the door-to-door latency from

800 to 200 microseconds

Future Plan • To launch commodity (crude oil) futures in the next couple of months

• To offer co-location services in the near future

Intro and Highlights of TAIFEX 2017




2017

WiFi Sponsor:



#TradingAsia

What do you feel are the biggest threats to growth in

the space?

• Chinese recession

• Geopolitical concerns

• Exchange/government rule changes

What is preventing you from trading Asian markets

today?

• Time zone issues

• Exchange fees

• Lack of knowledge

• Lack of liquidity




2017

WiFi Sponsor:



#TradingAsia

sgx update · 2020. 1. 1. · sgx update 17 0 10,000 20,000 30,000 40,000 50,000 60,000 70,000 msci...

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