NO 249 – NOVEMBER 2013

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ASX launches futures over resources and financial sectors

On 14 October 2013, ASX launched futures contracts over the S&P/ASX 200 Resources Index and the S&P/ASX 200 Financials-x-A-REIT Index. The launch of the new sector futures will enable market participants to tailor their trading, hedging and exposure to these specific segments of the Australian market. Dedicated market makers will provide liquidity for both new futures contracts.

ASX launches ETP futures product for market volatility

ASX has commenced trading of S&P/ASX 200 VIX futures, a new ETP that allows users to trade, hedge and arbitrage anticipated volatility in the Australian equity market. It will allow market participants to trade anticipated changes in volatility in a single transaction.

CBOE to launch Russell 2000 Volatility Index derivatives

CBOE Holdings plans to launch futures and options on the CBOE Russell 2000 Volatility Index, which measures the performance of small-capitalization US stocks. CBOE Futures Exchange began trading the futures on 18 November 2013, and Chicago Board Options Exchange plans to introduce trading in the options on 2 December 2013. The new products will allow investors to hedge volatility of a portfolio of small-cap stocks and to spread the volatility level of the Russell 2000 against large-cap index volatility to take advantage of differences between small- and large-cap company dynamics.

CBOE introduces mini-SPX options

On 5 November 2013, the Chicago Board Options Exchange listed a Mini-SPX Index option contract with a new PM-settlement feature. The PM-settlement is preferred by many investors, including institutions that have end-of-day reporting requirements. PM-settlement, also used for single-stock and ETF options, allows investors to trade in and out of positions easily on settlement day. With PM settlement, the index value is calculated based on the closing prices of the index’s component securities on the day of exercise.

CME Group to launch Nikkei options contract

CME Group, in the framework of its strategic alliance with JPX Osaka Securities Exchange, will launch yen-denominated options that will be available for trading on CME Globex from 13 January 2014, pending CFTC review. The options contract shall have a specific feature as it bases on the settlement price of OSE Nikkei 225 futures contracts.

Dalian Commodity Exchange launches iron ore futures contract

On 18 October 2013, the Dalian Commodity Exchange listed and launched trading in iron ore futures contract.

Dalian Commodity Exchange to launch fiberboard and plywood futures

The Dalian Commodity Exchange will launch trading of fiberboard and plywood futures, after having received the approval of the China Securities Regulatory Commission. The fiberboard and the plywood are important products of the forest industry

Dalian Commodity Exchange lists egg futures

After the trading of the egg futures on Dalian Commodity Exchange was approved at end of September 2013 by the China Securities Regulatory Commission, DCE listed for trading on 8 November 2013 the egg futures contracts.

Deutsche Börse lists first ETF on Australian bond market

On 18 October 2013, Deutsche Börse listed a new ETF tradable in the XTF segment on Xetra. The db X-trackers II Australia SSA Bonds UCITS ETF enables investors to participate in the performance of the Australian bond market for the first time.

Hong Kong Exchanges lists first ETF on cross border CES 120 index

On 21 October 2013, Hong Kong Exchanges and Clearing listed the first ETF tracking the cross border CES China 120 index. It is a physical ETF that includes A shares and Hong Kong shares, and will be traded and settled in both Hong Kong dollars and renminbi.

Hong Kong Exchanges offers RMB sovereign bonds

Hong Kong Exchanges and Clearing welcomes the decision by the Ministry of Finance of the People’s Republic of China to list renminbi-denominated sovereign bonds on its Stock Exchange, and for the first time use the Exchange’s facilities for a public offer of its bonds.

ICE launches new futures contracts

IntercontinentalExchange introduced 64 new energy contracts on 18 November 2013. The new contracts are available for trading at either ICE Futures Europe or ICE Futures US Energy Division and cleared at ICE Clear Europe. They include global crude oil, gasoline, middle distillate, fuel oil, power, biodiesel, naphtha, natural gas liquid and environmental futures and options contracts.

Moscow Exchange launches futures on proprietary shares

On 14 October 2013, Moscow Exchange launched trading in proprietary shares futures on its derivatives market.

Moscow Exchange starts trading in gold ETF

Shares in Russia’s first ETF on physical gold began trading on Moscow Exchange on 17 October 2013. The fund tracks the London Gold Fixing Price, which is set in USD every trading day. The fund’s shares are denominated in USD, while trading on the Moscow Exchange will be in RUB. The fund is the first regulated ETF on physical gold available in both the EU and Russia. The fund’s assets are in the form of bullion stored at a facility in London.

Moscow Exchange to launch trading in precious metals

Moscow Exchange will launch trading in platinum and palladium in the first half of 2014 if there is enough interest from investors. Trading will be based on the FX market’s trading and clearing infrastructure, allowing trading members to employ the latter’s risk management system, have positions unified with FX instruments, and to use existing settlement codes. RUB, USD, EUR, CNY, and precious metals are eligible as collateral. The National Clearing Centre acts as the central counterparty and clearing house.

NASDAQ OMX Iceland starts trading first ever bond ETF

NASDAQ OMX Iceland has for the first time listed a fixed-income ETF, issued by the Icelandic fund management company Landsbref. The new bond ETF tracks the NASDAQ OMX Iceland inflation-linked benchmark bonds index (NOMXIREAL).

NYSE Liffe launches new gilt futures

NYSE Liffe, the European derivatives business of NYSE Euronext, will be launching 30 Year Ultra Long Gilt Futures, in response to customer demand. The new contracts will be available from 25 November 2013.

Osaka Securities Exchange to launch CNX Nifty futures

Considering needs of investment in and hedging against India’s rapidly growing capital market, the Osaka Securities Exchange will introduce futures based on CNX Nifty which is a major Indian stock index used as a benchmark in various financial instruments, scheduled on 24 March 2014

Santiago Stock Exchange to launch ETF

The Santiago Stock Exchange expects to launch an ETF by year-end, after it signed an agreement with Brazil’s Banco Itau’s general fund manager to create ETF shares that will track the blue-chip IPSA index, the broader IGPA and the smaller Inter-10 indexes.

Singapore Exchange launches Asian foreign exchange futures

On 11 November 2013, the Singapore Exchange introduced Asian foreign exchange futures for deliverable and non-deliverable on six Asian currencies (AUD/USD, AUD/JPY, USD/SGD, INR/USD, KRW/USD and KRW/JPY).

Singapore Exchange introduces new Asian index futures

On 25 November 2013, the Singapore Exchange introduced three new Asian index futures to provide investors wider access to almost all of Asia’s key capital and growth markets. The new contracts, namely the SGX-PSE MSCI Philippines Index Futures, SGX MSCI Thailand Index Futures and SGX MSCI India Index Futures, complement SGX’s extensive suite of equity derivatives offerings. In addition, it provides global investors deeper and more extensive reach into Asia’s emerging markets.

Shenzhen Stock Exchange issues first SME exchangeable private placement bonds

On 25 October 2013, the Shenzhen Stock Exchange issued the first SME exchangeable private placement bonds, another kind of innovative product launched by the Exchange since SME private placement bonds were launched last year. SME exchangeable private placement bonds, privately placed by enterprises that fall into the category of Medium, Small or Micro-small Enterprises can be swapped for shares of public companies according to relevant stipulations within certain period by the bondholders.

Zhengzhou Commodity Exchange to launch rice futures

The Zhengzhou Commodity Exchange has recently launched rice futures.