NO 245 – JULY 2013

WFE Focus
New products

BM&FBOVESPA launches mini crude oil derivatives contract

On 21 June 2013, BM&FBOVESPA launched a new cash-settled mini crude oil derivatives contract based on the settlement price of CME Group's NYMEX light sweet crude oil futures contract. The launch is part of an agreement with CME Group to promote the cross-listing of futures contracts designed to meet the needs of local market participants. The new contract will allow local participants to execute hedging strategies that cover against price risk in the energy markets.

Dalian Commodity Exchange to develop timber index futures

On 14 June 2013, the Dalian Commodity Exchange and Guangdong Materials Group signed a strategic cooperation agreement to cooperate in the development of the timber index futures and other fields as the sole partner for each other.

Dalian Commodity Exchange launches "China-version" iron ore futures

On 27 June 2013, the Dalian Commodity Exchange disclosed its "China-version" iron ore futures contract. As the world's largest iron ore importer, China has great spot market; therefore, DCE's "China-version" iron ore futures applies physical delivery which is commonly seen in the global market.

Dubai Gold and Commodities Exchange lists SENSEX futures

On 5 July 2013, the Dubai Gold and Commodities Exchange launched for trading a futures contract based on SENSEX, the blue-chip stock index of BSE India. It will be the first Indian index futures to be introduced to the Middle East and North Africa (MENA) region.

ISE ETF Ventures lists options on VolDex index

The International Securities Exchange announced that it is the first options exchange to enter into a licensing agreement with NationsShares, a leading developer of option-enhanced and option-based indexes, to list options on the Nations VolDex index which measures broad market implied volatility by way of at-the-money SPY options.

JPX to re-launch super-long term JGB futures

The Japan Exchange Group has decided to re-launch Super-Long-Term (20-year) JGB futures based on JGB market conditions and discussions with investors. The re-launch is scheduled for April 2014, following the integration of the derivatives markets. They were listed on the Tokyo Stock Exchange from July 1988, but were suspended due to little demand.

Moscow Exchange to introduce German single stock futures

Moscow Exchange will list five single stock futures of some well-known German underlyings as of September 2013. The listing is part of the partnership agreement between Moscow Exchange and Deutsche Börse.

NASDAQ OMX Nordic launches cash settled single stock futures

NASDAQ OMX Nordic introduced cash settled single stock futures on Norwegian, Danish and Swedish securities. The new instruments are similar to existing physically settled single stock futures but settlement will instead be made in cash at expiration. Furthermore, the new product is expected to make trading in derivatives more accessible to investors. The advantages offered include central clearing of all derivatives, transparent product offering without hidden costs found in many retail products and simplicity as investors do not have to settle in a physical stock.

NASDAQ OMX Commodity introduces ETPs based on indexes

The NASDAQ OMX Group launched nine new ETPs in the UK that are based on indexes in the NASDAQ Commodity Index family.

Tel-Aviv Stock Exchange launches weekly options and futures on   TA-25 index

On 3 July 2013, the Tel-Aviv Stock Exchange launched weekly options and futures on the Tel-Aviv-25 index. The new options are suited to a wide range of investors seeking short term exposure hedging. The launch of weekly options on TASE will likely improve liquidity for both derivatives and the TA-25 constituent shares.