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Markets

  • December

    FOW Review of the Year: Derivatives market advances under regulatory fire 21 December 2010

    The commodities boom, the Indian FX wonder, the remarkable reopening of Chinese financial derivatives, Brazil, colocation, OTC clearing, algo trading, movie futures, dividend futures – early 2010 wasn’t short of action.

  • The People vs VXX 21 December 2010

    The VXX exchange-traded note, which aims to track futures on the CBOE Volatility Index, has more than $1bn of investors’ cash.

  • November

    Big E-Mini trade on a bad day caused flash crash, say regulators 30 November 2010

    The Securities and Exchange Commission and Commodity Futures Trading Commission have concluded that the stockmarket ‘flash crash’ of May 6 was caused by a single large trade in E-Mini S&P 500 Futures, which snowballed into a crisis.

  • CEE: rivals vie for the space between Frankfurt and Moscow 30 November 2010

    WSE thinks it should be the hub – but Wiener Börse has acquired three CEE exchanges and wants to unify their markets. Which market has the most credible claim to be the regional champion? Mareen Goebel reports.

  • Comment: Two years since Lehman, what has changed for F&O? 30 November 2010

    While the headlines have been dominated by depressed volumes and regulatory upheaval, much has been changing in the last two years, writes Mark Aarons, chairman of Actant.

  • Cover your tail – there’s a black swan coming 30 November 2010

    Everyone wants to hedge against the black swan event, the nightmare scenario. In the first leg of a two part investigation, Theo Casey asks whether such an ambitious aim can be achieved at a bearable cost.

  • CQG expands connectivity to Russian Markets 30 November 2010

    CQG, the order execution, charting, and analytics provider has enhanced its Russian offering to include spread trading on Forts, the futures and options component of the Russian Trading System Stock Exchange (RTS), and low-latency trade routing to RTS Standard, the equity market for Russian securities, the company announced at FOW’s 4th Annual Derivatives World Russia.

  • European power – a half-solved jigsaw 30 November 2010

    The power derivatives market is unlike most other derivatives markets. Some of the reasons for this stem from its fragmented nature, as infrastructures and fundamentals vary widely between EU member states.

  • The next upheaval for exchanges – centrally cleared CFDs 30 November 2010

    Simon Brown of Cambridge Quants argues that the historic separation of markets owes more to cultural divides than rationality. More importantly, these markets are about to merge.

  • US interest rate futures: CME prepares to face challengers 30 November 2010

    CME Group, has faced down a string of pretenders to its crown in recent years. Now new rivals are arming for battle. As David Wigan discovers, CME shows no sign of being worried – but the uprising may be more serious.

  • October

    Canada: sophisticated centres, unexplored tracts 27 October 2010

    Canadians are proud that their financial system came through the credit crunch with barely a scratch. No need, then, for sweeping regulatory reforms. But that is not entirely good news for the derivatives market.

  • Correlation: weirdest of the weird sisters 27 October 2010

    After volatility and dividends, yet another obscure derivative is on the verge of going mainstream. But, with equity correlation, are banks asking too much of the investing public? Theo Casey investigates.

  • Is correlation killing metals too? 27 October 2010

    The huge inflow of fund money means that in today’s metals market, traders now have to predict not just supply and demand for a particular metal, but how economic news will affect investment flows.

  • US options: Rage inside the machine 27 October 2010

    From the outside, the US options market appears perfectly organised, with volumes rising serenely throughout the financial crisis. Step inside, and you are deafened by angry cries and protestations.

  • India may let foreigners trade FX futures 25 October 2010

    Futures specialists have welcomed an Indian government report that proposes letting foreign firms trade the country’s currency futures and options – one of the fastest growing parts of the world’s listed derivatives markets this year.

  • HKEx confirms plans to list renminbi futures 21 October 2010

    Hong Kong Exchanges and Clearing is working on plans to develop renminbi futures but has said they are in an early stage of development.

  • Day traders, corporate hedgers and warring exchanges: India’s FX futures boom 11 October 2010

    Boom of the year has to be the dollar-rupee contracts at two leading Indian exchanges. With a third exchange just about to join in the fun, Colin Packham examines the causes of this astonishingly rapid success.

  • Analysis: New technology, new laws put Russia on track for growth 08 October 2010

    All agree that the Russian market still has huge untapped potential. With the government pushing to make Moscow a regional financial centre by 2020, the industry also has support from the top. Mareen Goebel reports.

  • Analysis: Oil trading goes global 04 October 2010

    The dominance of Nymex and ICE Futures Europe in global oil derivatives trading is unchallenged. But as Elise Coroneos reports, a satellite image of the market would show new bright spots emerging.

  • Asian commodity trading: the huge, the small and the tiny 01 October 2010

    Asia's exchange-based commodity markets are fragmented and underdeveloped. As Colin Packham reports, there are two vast markets, more internationally focused exchanges – and new start-ups hoping to break in.

  • September

    Analysis: Agricultural commodities - boom, bubble or both? 29 September 2010

    Food commodity prices are way up this year. Bad news for consumers, but great for investors looking for outperforming returns. Are both sides getting a fair deal out of the market? Tom Osborn tries to count the beans.

  • Dividend futures: will investors sell in September and go away? 09 September 2010

    The shiny new toy in equity investing is dividend futures. But this product does a lot more than it says on the tin, argues Theo Casey - not all of it nice.

  • India hums with regulatory action 03 September 2010

    India has taken several major steps towards improving the regulatory environment for its booming derivatives market.

  • August

    Gensler seeks advice on agricultural issues 31 August 2010

    Gary Gensler, chairman of the US Commodity Futures Trading Commission, addressed a meeting of the Agricultural Advisory Committee on August 5.

  • How European debt risks are changing derivatives 19 August 2010

    Every week, another alarm about European sovereign and banking risk. Derivatives are central to managing risks. Elise Coroneos asks whether the derivatives market is fit for the task.

  • Korea scales new heights, but is this the peak? 19 August 2010

    The Korea Exchange is linking up with the world's top exchanges. But at the same time, Korea may impose a tax on derivatives trading. What would that do to the Kospis legendary retail demand? Colin Packham reports.

  • CFFE opens CSI 300 futures to foreign investors 09 August 2010

    China has confirmed that it will allow Qualified Foreign Institutional Investors to trade the China Financial Futures Exchange’s CSI 300 equity index futures following a meeting it held with the US on May 26.

  • July

    Fat-tailed and frantic: why volatility is beating up the options market 28 July 2010

    Unlike other traders, options bods aren’t scared of volatility – in fact, they reckon they understand its ways. But this year, volatility has been a faithless friend. Theo Casey examines some of the freaky results.

  • Oil gains may be short-lived, analysts warn 28 July 2010

    Crude oil has been unable to break forcefully above $80, despite a rally in recent weeks, and could fall back this week towards $77 for WTI, according to research published by the DGCX.

  • Korea scales new heights, but is this the peak? 19 July 2010

    The Korea Exchange is linking up with the world’s top exchanges, opening the prospect of yet more liquidity. But Korea may impose a tax on derivatives trading. What would that do to the Kospi’s legendary retail demand?

  • Korea scales new heights, but is this the peak? 19 July 2010

    The Korea Exchange is linking up with the world’s top exchanges, opening the prospect of yet more liquidity. But Korea may impose a tax on derivatives trading. What would that do to the Kospi’s legendary retail demand?

  • Korea scales new heights, but is this the peak? 01 July 2010

    The Korea Exchange is linking up with the world's top exchanges. But at the same time, Korea may impose a tax on derivatives trading. What would that do to the Kospis legendary retail demand? Colin Packham reports.

  • June

    Regulators focus on S&P 500 futures in ‘flash crash’ probe 02 June 2010

    A preliminary report by the US Securities and Exchange Commission and the Commodity Futures Trading Commission into the ‘flash crash’ market turmoil of May 6 has narrowed the possible causes to six “working hypotheses” – including the influence of E-Mini S&P 500 Index Futures trading at CME Group.

  • May

    Frankfurt: Quiet capital of Europe’s derivative market 21 May 2010

    Frankfurt hasn’t half the glamour and hubbub of London – but when it comes to derivatives, it’s the gently pulsating heart of the European market. Tom Osborn reports from the banks of the Main.

  • April

    Binary options - the next big retail investing boom? 30 April 2010

    Binary options are no backwater of the options market, argues derivatives educator Rick Thachuk. Rather, they are a growth product for retail investors that is about to take off – like retail FX trading a decade ago.

  • Deutsche wins Malaysian approval to offer Islamic derivatives in Asia 23 April 2010

    Deutsche Bank has obtained an international Islamic banking licence from Malaysia’s central bank, Bank Negara Malaysia, which will allow it to offer Sharia-compliant derivatives in Asia in currencies other than ringgit.

  • India to reconsider introducing CDS 23 April 2010

    The Reserve Bank of India is revisiting a draft policy on credit default swaps, issued in 2007 but never implemented.

  • Islamic derivative master agreement completed 23 April 2010

    Islamic finance specialists gave a cautious welcome to the new ISDA/IIFM Tahawwut (Hedging) Master Agreement for Islamic derivatives, announced on March 1 by the two bodies that prepared it: the International Swaps and Derivatives Association and the International Islamic Financial Market.

  • Precious metals - is the boom sustainable? 20 April 2010

    Interest in gold, silver and other precious metals has soared during the financial crisis – and with it their prices. But is this just a speculative craze that will vanish as quickly as it came? Owen Sanderson reports.

  • Going down… like a cement balloon 01 April 2010

    Cement is one of the world’s most widely used and traded materials. Yet all attempts to offer futures on it have failed. Ben Beasley-Murray investigates.

  • March

    Carbon after Copenhagen: Living with uncertainty 25 March 2010

    The Copenhagen summit was a heavy blow to the hopes of environmentalists – and to prospects for a much bigger global carbon market. But emissions traders are taking it in their stride, as Siân Williams discovers.

  • Newedge reorganises into four global divisions 12 March 2010

    Newedge, the derivatives broker owned by Société Générale and Crédit Agricole, announced a reorganisation of its business yesterday at the annual Futures Industry Association conference in Boca Raton, Florida.

  • Isda publishes reports to explain OTC risk protections 11 March 2010

    The International Swaps and Derivatives Association has today published two reports designed to improve understanding of how collateral is used to mitigate credit risk in the over the counter derivative markets.

  • EEX — ‘central clearing cheaper than OTC’ 09 March 2010

    Those who claim it is cheaper to engage in derivatives over the counter than through a central clearing counterparty are not taking the cost of credit risk into account, according to a study by the European Energy Exchange.

  • N2eX to launch derivatives in next six months 09 March 2010

    N2eX, the power exchange venture run by Nasdaq OMX and Nord Pool, will launch futures “within six months”, according to Geir Reigstad, president of Nasdaq OMX Commodities.

  • February

    Energy market shrugs off ‘toothless’ caps 23 February 2010

    The Commodity Futures Trading Commission’s long-awaited announcement on January 14 of a new policy on controlling energy speculation was greeted in the market with quiet relief and satisfaction.

  • Reshuffle continues at Newedge 23 February 2010

    Newedge, the derivatives and securities brokerage, has appointed Laurent Cunin as head of its Asia Pacific operations, based in Hong Kong.

  • Resilient derivatives job market gets ready to surge again 23 February 2010

    Gauging how many derivatives staff lost their jobs in the financial crisis and what effect that had on pay is not easy. Some segments of the market have remained bullish, however, as Hugo Cox discovers.

  • Deutsche Börse brings in McKinsey to oversee 20% management cuts 17 February 2010

    Deutsche Börse Group, operator of Eurex and International Securities Exchange, is bringing in US management consultancy McKinsey for large scale restructuring, a person familiar with the matter has told Futures and Options World.

  • NZX: our new future will be the first global milk contract 17 February 2010

    The New Zealand Stock Exchange (NZX) is confident that its whole milk powder future will establish itself as a global benchmark because it is not US centric, unlike the rival CME Group contract.

  • Tullett Prebon opens Japanese OTC brokerage 11 February 2010

    Interdealer broker Tullett Prebon has launched a new over-the-counter brokerage firm in Japan for equity derivatives.

  • Longevity derivatives: an idea whose time has come? 05 February 2010

    Every year, people live longer. That may sound nice, but it’s a big problem for the financial industry, especially pensions providers. Firms would love to be able to trade and hedge longevity risk, but there have been few practical solutions – until now.

Poll

What is the main reason volumes down on derivatives exchanges this year?

Banks are cutting back on trading ahead of Volcker Rule
13%
Financial institutions are more risk averse
49%
Risk is too one directional
1%
Few new contracts are being launched
4%
Low interest rate environment
11%
Uncertainty about regulatory reform
23%