Regions Industry News

Asian electronic trading requires encouragement: ASIFMA    < 2013-11-21 >

Adoptionof electronic trading in Asia needs further encouragement, according to the Asia Securities Industry & Financial Markets Association(ASIFMA). The industry body has made specific recommendationsfor improving Asia’s trading environment within its white paper, “Asia’s capitalmarkets, strategies for sustained growth”. As well aspromoting electronic trading, regional consistency of controls are also neededto support further growth. Forexample, ASIFMA said prohibitions of direct marke

ASX consults on shorter settlement cycle    < 2014-02-26 >

The Australian Securities Exchange (ASX) is consulting theindustry and seeking feedback on the introduction of a T+2 settlement cycle forcash market trades in Australia. The move would shorten the current settlementperiod of T+3 by one business day. ASX said faster settlement will create capital andmargin savings for the industry.  It said the move would cut counterparty risk for individual investors, participantsand the central clearing counterparty, resulting in lower systemic risk. Less re

Stamp duty waiver extended by Hong Kong Government    < 2014-02-26 >

The Hong Kong government has announced that stamp duty ontrading of all exchange-traded funds (ETFs) will be waived. This extends awaiver from 2010 that scrapped stamp duty on ETFs that track indexes comprisingnot more than 40% of Hong Kong stocks. The change has been welcomed by market operator Hong KongExchanges and Clearing. There were 116 ETFs listed in Hong Kong at the end of lastyear, representing an increase of 68% compared with three years ago. The dailyaverage turnover of ETFs increa

HKEx launches mainland market data hub    < 2014-03-03 >

Hong Kong Exchanges and Clearing Limited (HKEx) has launchedits mainland market data hub in Shanghai. It represents HKEx’s first connectivityinfrastructure in mainland China. The hub offers client access to HKEx’s market data withouthaving to maintain cross-border communication lines.  At the outset, the hub will provide five Chinese firmsdirect access to a market and index datafeed and an index feed under HKEx’sOrion market data platform.  Other feeds may be introduced at a later dateand t

SFC consults on Hong Kong dark pools    < 2014-02-27 >

  Hong Kong's Securities andFutures Commission (SFC) has commenced a two month consultation concerning thefuture regulation of dark pools, (for which the SFC is employing the term ‘alternativeliquidity pools’). The SFC wants tostandardise the regulation imposed on Hong Kong licensed corporations thatoperate dark pools, by putting in place ‘comprehensive requirements governingtheir operation’ in its Code of Conduct. "Theproposals aim to strike a balance between market development, market in

HKEx maps out plans for 2014    < 2014-02-26 >

Hong Kong Exchanges and Clearing (HKEx) has laid outits intentions for upcoming market microstructure improvements. The plans wereset out in tandem with the exchange’s announcement of its 2013 results. HKEx CEO Charles Li said that the exchange has completedconsultation on the trading halt (a hiatus in trading that is similar, but not identical to a circuit breaker) , that it is exploring a best approach andmodel for mutual market access with China and currently expects a Q 2014 launch of the

HKEx flags upcoming consultation on closing auction    < 2014-03-04 >

Charles Li, the CEO of Hong Kong Exchanges andClearing (HKEx), has said that reinstatement of the Hong Kong closing auction will anissue to be addressed in an upcoming market consultation. This process isexpected to take place sometime during 2014. The catalyst for the consultation is the high level ofinstitutional demand. The closingauction has been absent from Hong Kong's stock exchange since 2009,  when during a period of volatility, shortselling concerns rose and there were worries about

HKEx to include RMB currency futures in after-hours trading    < 2014-03-05 >

Hong KongExchanges and Clearing Limited (HKEx) will add deliverable RMB currency futuresto after-hours trading in April.  It will also introduce the fourthcalendar quarter to the product’s existing contract months and add morecalendar spreads. Other trading,clearing and risk management measures for after-hours futures will apply similarlyto RMB currency futures with the exception of a price limit of plus or minus 3per cent of the last traded price of each RMB currency futures contract mont

SGX to launch new options and futures products    < 2014-03-13 >

  SingaporeExchange (SGX) has announced plans to launch SGX FTSE China A50 Index optionsduring the third quarter of this year. Theoptions contract, which is still subject to final regulatory approval, will belisted as an option on SGX FTSE China A50 Index futures. The SGX China A50futures contract has become one of SGX’s fastest growing derivatives contracts,with a annual trading volume record of 22 million contracts during 2013. SGX said that it is the sole internationally accessible future

Japan trading seeks new catalyst    < 2014-03-10 >

  Japan’s traders had a busy year in 2013,heavily concentrated during the late spring period. However, volumes since havefailed to emulate that activity and traders today are looking for a newrationale to carry Japan’s market renaissance further. In 2013, the macro push was provided byquantitative easing, which was one of the initial drivers of Abenomics. Theyen/dollar exchange rate fell, giving an impetus to Japanese stocks andinvigorating traders. “Quantitativeeasing in Japan and elsew

Greater transparency on bond repayment rules in Shanghai    < 2014-03-13 >

The Shanghai Stock Exchange (SSE) has made changes to the rules for its nascent bond markets. When bond issuersrepay principal in installments, the bond positions held in the investors’accounts will remain unchanged, with the nominal value of a single lot of bondsreduced correspondingly. The SSE requires bond issuers to publish an announcementbefore making such repayments in this ways. The data to be provided willinclude; the record date, repayment scheme, calculation method for nominalvalue,

ITG launches platform in Korea    < 2014-03-17 >

  ITG announced that ithas added Korean equities to its crossing network. It aims to help institutionssource block liquidity and minimise market impact. The company said it delivered an average price improvement of 10 basis points (bps) in developedmarkets and 34 bps in emerging markets last year. ITG’s Posit offering includesa  dark aggregation facility known as ‘Marketplace’,volumes increased 40% during 2013 inthis product, together with   a block crossing platform. It is nowavailable

Thomson Reuters unveils block service    < 2014-03-18 >

Financial information firm Thomson Reuters will operate a block trading service based on its buy- and sell-side messaging platform Autex, but the firm has said it will not compete directly with dark pools or crossing networks. The Autex service, which links 750 buy-side and 700 sell-side firms, provides indications of interest (IOIs) and advertised trades, and will be the basis for Block Connect, a service that matches buy- and sell-side liquidity to execute in a venue regulated as a broker

Amundi considers outsourced trading for Asia clients    < 2014-03-14 >

Fundmanager Amundi says it may offer its Asian trading capabilities to externalclients. The firm has US$70 billion in assets under management in Asia. Itcurrently operates three regional dealing desks (Tokyo, Hong Kong andSingapore), which are supervised from the Singapore office. “We provideexecution services, providing those services to external clients could be achallenge we may like to take up, so for example selling our services to a firmwhich has no trading desk,” says DavidLogerais, th

T. Rowe Price hires Richard Nelson for Australia    < 2014-03-11 >

T. Rowe Price has hired buy-sideequities trader Richard Nelson as an equities dealer. He will oversee trading in Australian and New Zealand listed securities.He will work with T. Rowe Price’s head of Australian equities, RandalJenneke, and the firm’s regional trading team. Commenting on his new job, Nelson said the dynamic nature of markets mixedwith the rise of electronic trading has created complexities andchallenges for dealers responsible for institutional trade execution. “Some t

BestEx and Tora to offer outsourced trading for Australian funds    < 2014-03-17 >

Tora Trading and BestEx, an Australian executiontrading firm that handles outsourced trading, have announced a jointventure to offer global trading services to fund managers in Australia. It will allow institutional clients of BestEx to seek best execution byoutsourcing trading to dealing desks in international markets, using Tora’s technologyand broker relationships. BestEx believes that outsourced trading is gaining strong traction in Australia.Its founder and CEO Phillip Weinberg said that

SGX plans new order types    < 2014-03-20 >

The Singapore Exchange (SGX) has said it will make changes tosecurities orders with effect from 31 March 2014. Market orders (buyor sell orders which are executed immediately at current market prices ) and market-to-limit orders will be madeavailable throughout the trading session. Market-to-limit orders ensure execution for a portion of theorder while avoiding risks of getting the order fully filled at a price distantfrom the last-traded price. Previously both types were only available duri

Major brokers bounce back in Hong Kong    < 2014-03-20 >

The biggest brokerages have raised their market share during March 2013,according to statistics from Hong Kong Exchanges and Clearing (HKEx). In the 'Stock exchange participants' market share report', HKEX splits itsexchange participants into three segments, the top fourteen, numbers 15 to 65and lastly, everyone else. Then, HKEx calculates how much market share eachgroup accounts for. In March 2013, the fourteen biggest firms accounted for between 2.12% to7.69% individually of market turnove

Jail terms for Australian rogue traders fit global norms    < 2014-03-21 >

The Australian Securities andInvestments Commission (ASIC) has concluded that maximum terms of imprisonmentand fines at its disposal are broadly consistent with those available in otherjurisdictions. The main exceptions are that significantlyhigher maximum prison terms are available in the United States compared with Australiaand all the other jurisdictions surveyed. In Australia and Hong Kong, ten yearsis the maximum term, whereas the USA can lock an offender away for upto 20 years. In Austr

Liquidnet targets Asian long-only and hedge fund managers    < 2014-03-25 >

Liquidnetis planning to further develop its client business in Asia during the next 12months by targeting locally-based and regionally-focused asset managers. “Asian-basedhedge funds haven’t yet been a great area of penetration for us,” said LeePorter, head of Liquidnet Asia Pacific.  “Someof them are nevertheless big and often have good contra-flows, as well as tradinga lot of mid and small caps. Hedge funds turn over their portfolio with morevelocity than long-only funds, and need to use mo

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