Asian markets are become increasingly
significant to the global derivatives business, with trading arcades and exchange hubs
sprouting up in the region on a regular basis. Elliott Aykroyd spoke to Arman Falsafi, MD for Europe and Asia at Chicago Mercantile Exchange (CME), the first Western derivatives exchange to open a hub in Asia, about the state of play there as well as her European remit.
What has been the thinking behind CME's recent
activities in Asia?
We have been involved in Asia for quite a long time now;
we've been in a partnership for the Eurodollar contract with
SGX [Singapore Exchange] for over 20 years and successfully
created an extended trading day for the Eurodollar market long
before there was electronic trading and global
We have many interests in Asia. Firstly, we believe it
represents a market for our global benchmark products for risk
management and in that regard even with the MOS arrangements we
believe we have barely scratched the surface. There's a growing
interest in risk management and trading financial products in
Asia and this trend we feel will accelerate.
Secondly, we think there are opportunities over time to
develop new benchmark products targeted at Asian customers. Our
current suite of products having global appeal is one thing but
they can be complemented with Asia-specific contracts. We are
looking at new product opportunities and we may pursue those
ourselves or in partnership with Asian exchanges - although we
have a lot of experience in product development there is no
substitute for local expertise so we hope to able to work
together with the Asian markets to develop the right kind of
products for them.
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