sgx update · 2020. 1. 1. · sgx update 17 0 10,000 20,000 30,000 40,000 50,000 60,000 70,000 msci...
TRANSCRIPT
1 Disclaimer: The information contained in this document is intended only for use during the presentation and should not be disseminated or distributed to parties outside the presentation. Phillip Capital Inc.
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2017
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2 Disclaimer: The information contained in this document is intended only for use during the presentation and should not be disseminated or distributed to parties outside the presentation. Phillip Capital Inc.
accepts no liability whatsoever with respect to the use of this document or its contents.
Phillip Capital Inc. (A member of PhillipCapital) © 2015 All Rights Reserved
2017
3 Disclaimer: The information contained in this document is intended only for use during the presentation and should not be disseminated or distributed to parties outside the presentation. Phillip Capital Inc.
accepts no liability whatsoever with respect to the use of this document or its contents.
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What futures industry veteran does our MC most
resemble?
• John Lothian
• Bill Herder
• Terry Duffy
• Pat Kenny
4 Disclaimer: The information contained in this document is intended only for use during the presentation and should not be disseminated or distributed to parties outside the presentation. Phillip Capital Inc.
accepts no liability whatsoever with respect to the use of this document or its contents.
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OUR GROWING GLOBAL PRESENCE
16 countries > 1 billion Shareholder’s Equity > 1 million customers
Offer Clearing and Execution services for futures and equities
5 Disclaimer: The information contained in this document is intended only for use during the presentation and should not be disseminated or distributed to parties outside the presentation. Phillip Capital Inc.
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ASIA IS STILL GROWING
• China and India growth stories
• Forecast of World Economic Growth from 2.4% to 3.4%
• China stopped decelerating.6.9%
• Growth Rate of Asia up 5.5% last year was 5.3%.
6 Disclaimer: The information contained in this document is intended only for use during the presentation and should not be disseminated or distributed to parties outside the presentation. Phillip Capital Inc.
accepts no liability whatsoever with respect to the use of this document or its contents.
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NO. 1 PEOPLE ARE CRAZY ABOUT SPORTS
7 Disclaimer: The information contained in this document is intended only for use during the presentation and should not be disseminated or distributed to parties outside the presentation. Phillip Capital Inc.
accepts no liability whatsoever with respect to the use of this document or its contents.
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NO. 2 THE TRADING FLOOR OF THE FUTURES EXCHANGE
8 Disclaimer: The information contained in this document is intended only for use during the presentation and should not be disseminated or distributed to parties outside the presentation. Phillip Capital Inc.
accepts no liability whatsoever with respect to the use of this document or its contents.
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YOU WIN-I LOSE. I WIN -YOU LOSE
9 Disclaimer: The information contained in this document is intended only for use during the presentation and should not be disseminated or distributed to parties outside the presentation. Phillip Capital Inc.
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HOW WE LIVE OUR LIVES
10 Disclaimer: The information contained in this document is intended only for use during the presentation and should not be disseminated or distributed to parties outside the presentation. Phillip Capital Inc.
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TO LEARN KUNG FU IS TO LEARN “THE WAY”
1. There are two opposite forces- the ying and
yang
2. There is portion of opposite element in
each section.
3. It is a circle
4. There is harmony and a balance between
two opposites.
5. One cannot coexist without the other.
11 Disclaimer: The information contained in this document is intended only for use during the presentation and should not be disseminated or distributed to parties outside the presentation. Phillip Capital Inc.
accepts no liability whatsoever with respect to the use of this document or its contents.
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WHAT IT MEANS TO BE TWINS
This Photo by Unknown Author is licensed under CC BY
12 Disclaimer: The information contained in this document is intended only for use during the presentation and should not be disseminated or distributed to parties outside the presentation. Phillip Capital Inc.
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YING AND YANG
13 Disclaimer: The information contained in this document is intended only for use during the presentation and should not be disseminated or distributed to parties outside the presentation. Phillip Capital Inc.
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WHAT IS
COURAGE?
Courage is more than standing
up to what we believe.
Courage is also vulnerability in
disguise
14 Disclaimer: The information contained in this document is intended only for use during the presentation and should not be disseminated or distributed to parties outside the presentation. Phillip Capital Inc.
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BRUCE LEE’s QUOTE
15 Disclaimer: The information contained in this document is intended only for use during the presentation and should not be disseminated or distributed to parties outside the presentation. Phillip Capital Inc.
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Phillip Capital Inc. (A member of PhillipCapital) © 2015 All Rights Reserved
2017
16 Disclaimer: The information contained in this document is intended only for use during the presentation and should not be disseminated or distributed to parties outside the presentation. Phillip Capital Inc.
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2017
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SGX Update
17
0
10,000
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Jan
-15
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-15
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Sep
-15
No
v-1
5
Jan
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Mar
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May
-16
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No
v-1
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Jan
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Mar
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Ave
rage
Dai
ly V
olu
me
/ M
on
th-E
nd
O
pe
n In
tere
st
(Co
ntr
acts
)
Growth in FX suite
FX DDAV FX Month End OI
Increasing utility of INR and CNH futures
Growing screen liquidity in Iron Ore
0%
5%
10%
15%
20%
25%
30%
35%
020,00040,00060,00080,000
100,000120,000140,000160,000180,000200,000220,000
Monthly Iron ore Screen Volumes
T+1 T %T+1
NIKKEI 225 NIKKEI
DIVIDEND
FTSE CHINA A50 MSCI CHINA
MSCI INDONESIA
MSCI TAIWAN
MSCI SINGAPORE
MSCI THAILAND
MSCI MALAYSIA
MSCI PHILIPPINES
Nifty 50 MSCI INDIA BANK NIFTY
MSCI NTR contracts
launched on China, Taiwan,
Singapore, India, Indonesia and Singapore…..
Product Q1-Q2 Q3 % Chg
SET50 Index Futures 95,626 114,374 20%
Single Stock Futures 173,986 185,388 7%
Gold Futures 11,775 20,860 77%
SET50 Index Options 2,795 6,992 150%
Other 1,104 2,274 106%
Total 285,284 329,887 16%
SET50 Index Futures 284,382 334,741 18%
Single Stock Futures 1,515,979 2,178,647 44%
Gold Futures 40,862 45,855 12%
SET50 Index Options 39,816 63,429 59%
Other 18,280 16,134 -12%
Total 1,899,319 2,638,806 39%
Daily Average Volume
Open Interest
Data as of Sep 30, 2017 Unit: Contracts
Three Main Products
SET50 Index
Futures34%
Stock Futures
59%
Gold Futures
5%
A Strong Retail Based Market
Institution
38%
Individual
51%
Foreign
11%
Gain Momentum in Q3/2017
Korea Exchange
0
100
200
300
400
0
50
100
150
200
250
300
Flagship
Products
0
500
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3500
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KOSPI 200 Futures
KOSPI 200 Options
Single Stock
Futures(132 stocks)
ADV(thousan
ds)
OI(thousand
s)
2017 Highlights Coming Up Next
Weekly KOSPI 200
Options
U.S. Product
Approval of KOSPI200 Options,
Single Stock Futures &
KTB Futures
Global Coverage
KRX Singapore Branch
Opened in September
2017
7th Anniversary of Eurex-KRX Link
Omnibus Account Introduced
June 26
20,000 Delta (End Client Base) / Post Allocation /
Foreign FCMs Hedge Only Account Introduced
Retail investors are allowed to join the
market without the initial deposit
CFTC Certification of Mini-KOSPI
200 Futures
August 2
US investors are now able to freely trade
KOSPI 200 Futures and Mini-KOSPI 200 Futures
through KRX members firms
30th August 2010
KOSPI200 Options on
Eurex
27th June 2016
EuroStoxx50 Futures on
KRX
28th November 2016
Mini-K200 Options on
Eurex
Over 150 million contracts
cumulated
as of 30th August 2017 (ADV 91,950)
Stamp Duty(0.3%) Exemption for
Korea Post
April 28
KRX expects increase of the arbitrage trading
by Korea Post in both KOSPI and Derivatives
markets
Multiplier
Reduction
March 27
Multiplier for KOSPI 200 F&O is halved
Lowering Entry Barrier for
Retail Investors Easing requirements for the initial deposit,
education and mock trading periods
30th August
2017
New Market Maker &
Market Contributor
Scheme
Flexible Incentives, More
Products
20 Turnover for Stock Connect is Buy + Sell
Source: Bloomberg, HKEX
0
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Jan
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-15
Ap
r-1
5
May
-15
Jun
-15
Jul-
15
Au
g-1
5
Sep
-15
Oct
-15
No
v-1
5
De
c-1
5
Jan
-16
Feb
-16
Mar
-16
Ap
r-1
6
May
-16
Jun
-16
Jul-
16
Au
g-1
6
Sep
-16
Oct
-16
No
v-1
6
De
c-1
6
Jan
-17
Feb
-17
Mar
-17
Ap
r-1
7
May
-17
Jun
-17
Jul-
17
Au
g-1
7
HSI Futures ADV Stock Connect NB ADT (RMB mn) Stock Connect SB ADT (HKD mn) Cash Market ADT (HKD mn)
Co
ntr
act
lots
Sto
ck C
on
ne
ct
Cas
h M
arke
t
Where the world comes to trade: China
250,000
0
50,000
200,000
150,000
100,000
For Eligible Broker Dealer or Eligible Institutions
21 Disclaimer: The information contained in this document is intended only for use during the presentation and should not be disseminated or distributed to parties outside the presentation. Phillip Capital Inc.
accepts no liability whatsoever with respect to the use of this document or its contents.
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2017
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Which Asian country do you think has had the most
futures industry growth in the past year?
• China
• India
• Korea
• Japan
• Other
What futures industry sector do you feel is most
impacted by Asian volume?
• Currencies
• Commodities
• Equity indices
• Interest rates
24 Disclaimer: The information contained in this document is intended only for use during the presentation and should not be disseminated or distributed to parties outside the presentation. Phillip Capital Inc.
accepts no liability whatsoever with respect to the use of this document or its contents.
Phillip Capital Inc. (A member of PhillipCapital) © 2015 All Rights Reserved
2017
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25
Bursa Malaysia Derivatives Berhad (BMD)
Introduction to BMD
BMD is the only derivatives exchange in Malaysia.
Chicago Mercantile Exchange (CME) has a 25% of
the equity stake in BMD as part of the strategic
partnership with Bursa Malaysia Bhd.
ALL BMD contracts are listed on CME Globex® and
BMD has been granted registration as a Foreign
Board of Trade (“FBOT”) by the U.S. CFTC in
January 2015.
Overview on Futures on Crude Palm Oil (FCPO)
i. FCPO (25 MT per contract) is global benchmark for
edible oils and is physically delivered.
ii. Daily liquidity of over 32,000 contracts (800,000 MT)
and with 150,000 contracts (3.8m MT) open interest.
Overview on FBM KLCI Futures (FKLI)
i. The underlying for FKLI is FTSE Bursa Malaysia
Kuala Lumpur Composite Index (FBM FKLI).
ii. It comprises the largest 30 companies listed on the
Main Board of Bursa Malaysia.
Update from BMD
1. Forward Hedge of FCPO and OCPO for Non-
bank Non-resident Market Participants by Central
Bank of Malaysia (Supplementary Notice (No 3)
dated 11 Sept 2017): A non-bank non-resident market participants who
is registered with the Bank is allowed to enter
into forward contracts with a licensed onshore
bank or an appointed overseas office up to the
net open position (NOP) of its ringgit-
denominated FCPO or OCPO contracts
undertaken on BMD for the purpose of managing
its ringgit exposure arising from the FCPO or
OCPO contracts.
2. Decoupling of Participantship Under the framework, large and well-capitalized
financial institutions are now able to come into
our market as stand-alone clearing participants
and provide third-party clearing services.
The Latest News from Osaka Exchange
Celebrated 1st anniversary of the launch of New J-GATE,
the derivatives trading platform and new products
Extended Night Session to 3.30pm (CST)
Growing trade during the Night Session Introduced TSE Mothers Futures
Becoming more liquid
Items Description In
tro
an
d b
ack
gro
un
d
Intro • Taiwan Futures Exchange operates the sole futures and options marketplace in Taiwan
• Categories of futures and options products offered: equities, indices, FX, interest rates, and commodities
Market
Structure
• Similar to Taiwan’s stock market, retail investors play a very important role at TAIFEX
• Retail to institutional investors at TAIFEX: 50/50 ratio
• Trading volume of foreign investors surged more than double from 2014 to 2016
• Overall foreign participation (overseas+ foreign proprietary trading houses in Taiwan): 33.42% (2016)
Volume • For the third straight year, more than 200 million contracts were traded in 2016
• Close to 1 million contracts traded per day
Core
Products
• With its underlying index “TAIEX” benchmarking the performance of all listed stocks on Taiwan Stock Exchange, TAIEX Futures (TX) and
TAIEX Options (TXO) are among the most liquid and leading equity index contracts in Asia
• TXO: Over 167 million contracts were traded in 2016, making it the sixth most traded equity index options product globally
• Both TX and Mini-TAIEX Futures (MTX) set all-time-high volumes in 2016 and, together with TXO, accounted for over 90% of the volume at
TAIFEX
Hig
hlig
hts
20
16
~1
7 Products
• To fulfill the trading needs for RMB products, TAIFEX launched RMB FX Options (USD/CNT and USD/CNH FX Options), Taiwan’s first currency
options and the world’s first exchange-traded offshore USD/RMB FX options, in June 2016
• In November 2016, TAIFEX launched two more FX futures – EUR/USD and USD/JPY FX Futures
• Following the listing of TOPIX Futures in 2015, TAIFEX introduced Nifty 50 Futures also in November 2016
• In May 2017, with a licensing agreement signed with CME Group, TAIFEX introduced Taiwan Dollar-denominated futures on the S&P 500
and the Dow Jones Industrial Average (DJIA) indices
• On international collaboration, TAIFEX licenses DBAG to distribute market data and information products to international clients
Mechanism
• Along with DJIA and S&P 500 Futures, TAIFEX initiated an after-hour trading session from 15:00 or 17:25 to 05:00 the next day
• By extending its trading to 19 hours, TAIFEX increases the overlap with markets in the US and Europe, enabling both domestic and global
investors to manage their risks outside of regular trading hours of Taiwan
• Within 3 months of launch, volumes during the after-hour session were equivalent to 8.5% of the regular session
Technology
• TAIFEX built its trading system in-house considering flexibility and cost-efficiency
• Completed a major upgrade to the 5th Gen, and migrated IT platform from Unix-based to Linux-based in December 2016
• This improved the system by doubling the capacity from 24,000 to 48,000 orders per second and decreasing the door-to-door latency from
800 to 200 microseconds
Future Plan • To launch commodity (crude oil) futures in the next couple of months
• To offer co-location services in the near future
Intro and Highlights of TAIFEX 2017
29 Disclaimer: The information contained in this document is intended only for use during the presentation and should not be disseminated or distributed to parties outside the presentation. Phillip Capital Inc.
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2017
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What do you feel are the biggest threats to growth in
the space?
• Chinese recession
• Geopolitical concerns
• Exchange/government rule changes
What is preventing you from trading Asian markets
today?
• Time zone issues
• Exchange fees
• Lack of knowledge
• Lack of liquidity
32 Disclaimer: The information contained in this document is intended only for use during the presentation and should not be disseminated or distributed to parties outside the presentation. Phillip Capital Inc.
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