T-Bond Futures with Chinese Characteristics

After an 18-year hiatus, Chinese Government bond futures are back. After more than a year of mock trading the CGB finally went live on September 6, racking up an impressive first day’s volume of 36,635 contracts. The celebratory first day gave way to more humdrum reality the following week, however, as turnover dropped off toward 5000 a day, where it has been bouncing around since. Open interest, a more robust measure of the breadth of participation, has been climbed steadily from 2,959 after the first trading day and has also settled to around 4500 contracts as of early October.

WFE interviews Hans B. Sicat, PSE President and CEO

The Philippine Stock Exchange (PSE), the only stock exchange in the Philippines, was incorporated in July 1992 and began operations in 1994. It is the product of the unification of two exchanges, the Manila Stock Exchange (MSE) and the Makati Stock Exchange (MkSE). The predecessor firms each had histories dating back to 1927 and 1965, respectively.

WFE interview with Eric Forest, Chairman and Chief Executive Officer of EnterNext (NYSE Euronext Group)

Eric Forest, Chairman and Chief Executive of EnterNext (NYSE Euronext Group) talks to Focus Magazine on SMEs and how the recently created EnterNext is going to advocate on their behalf.

Basic Product, Great Expectation

Chinese economy is undergoing structural changes as it slows down to streamline resource allocation. Misallocation of capital resources is blamed for the recent woes like cash crunch, credit difficulties and wild market fluctuations. Chinese capital markets are now called upon to activate idle funds and provide liquidity to support sound real-economy projects. Instead of sophisticated financial instruments, basic asset-backed securities seem to work just fine to channel funds to viable business projects. 

Are Global Standards in Commodity Derivatives Fit for Purposes?

The key question that has been posed to this panel is whether the global standards in commodity derivatives markets are fit for purpose. To address this question there are three sub-questions that I believe would be relevant in this regard.

The first one is why commodity markets are in focus for securities markets regulators in the first place? A second sub-question to this would be what trends are developing and impacting market infrastructure? And finally, what risks are being considered and addressed by market authorities of developed and emerging markets around the globe. I will share with you some of my observations around these three sub-questions.

WFE publishes 2012 Cost & Revenue Survey report

For the first time since 2001, total revenues decreased (-10%) to USD 28 bn. All the types of exchanges and all the regions were affected.


This article presents ways in which an exchange can structure its rule development processes so that they are effective, transparent, and consistent.

Exchanges tend not to focus on rule development unless it threatens to impede business initiatives they want to implement. And that’s not surprising – new rules can be abstruse, time consuming to vet once they’re written, and complex to code or implement, particularly if rule-writers and programmers don’t work together. Amending existing rules, or even clarifying them to describe what actually happens in the market, can be daunting, especially if the rules were originally crafted to favor entrenched interests, or to protect local market participants.

But rule development is a project like any other that an exchange undertakes. The challenge for a management team who are used to implementing complex projects, therefore, is to see rule development through the lens of project management. Because the fact is, properly supported and managed, rule development can be a positive asset to an exchange as it prepares to implement new technologies, update old ways of doing business, and convince potential market participants that their capital will be treated consistently and fairly.



Rule making as project management

On the June issue of Focus, we are pleased to feature an article by Daniel Labovitz, Managing Director at MarketReg Advisors.  While the responsibilities of self-regulatory organizations have changed much over the years, and differ widely between jurisdictions, implementing rule changes is a sometimes overlooked feature of the process. 

WFE interviews the Amman Stock Exchange

The Amman Stock Exchange (ASE) assumed its tasks on March 11th, 1999 - after the restructuring of the Amman Financial Market - as a private nonprofit institution with administrative and financial autonomy and is authorized to practice as a regular market for trading in securities in Jordan, subject to the control of the Jordan Securities Commission (JSC). The ASE is managed by a seven-member Board of Directors; four of whom are elected by the General Assembly and three are appointed by the Board of Commissioners of the JSC.

The ASE operates markets for stocks, bonds, and right issues. The equities market is segmented into 3 markets based on criteria related to liquidity, profitability and owner's equity, while the bonds market includes government bonds in addition to corporate bonds.

As of May 31st 2013, the number of listed companies at the ASE stood at 243 companies with a market capitalization of USD26.9 billion. The trading value at the ASE since the beginning of this year until the end of May has doubled compared with the same period of last year reaching USD2.6 billion and the number of shares traded reached 1.4 billion shares executed through around half a million transactions.


WFE interviews Casablanca Stock Exchange

The Casablanca Stock Exchange was established in 1929. It has since undergone a number of reforms, the most significant one being that of 1993 which resulted in it becoming the market that we recognise today.

The Casablanca Stock Exchange is today a société anonyme with a board of directors and a general management team, operating under the supervision of the Ministry for the Economy and Finance with a specific remit. The Casablanca Stock Exchange is currently in the process of being demutualised.

Our task is to ensure the proper functioning of the Moroccan stock market, its development and its promotion.

The Moroccan stock market has developed considerably over the years. Securities have been traded via an electronic quote-driven trading system since 1997, the latest version of which was introduced in 2008.

The market, in terms of size, has also grown significantly! The number of companies listed on the Exchange has risen by 43% from 53 listed companies in 2004 to 77 at end-May 2013. Market capitalisation has more than doubled from USD 25 billion to USD 53 billion. It’s a similar story for capital-raising. USD 2,1 billion was raised in 2012 and a total of USD 16 billion over the period 2003-2012.

The Casablanca Stock Exchange is a cash market on which equities, bonds, venture capital funds and special purpose vehicles are traded.

A series of regulatory reforms are underway which will result in a number of new products and markets being introduced. Legislation authorising securities lending has recently been approved and will come into effect in the coming weeks.