The ETF is the only mainland security on which options trading exists, with regulators allowing the China A50 ETF contracts in early 2015. The volume has grown steadily, options trading on China A50 ETF jumped to record hedge sought in April this year.
China’s cabinet said earlier that financial derivatives should be developed in a “steady and orderly manner”. Regulators are taking steps at their own pace to develop the required market mechanism and to test the water with options first before rebuilding the futures market.
While keeping an eye on the changing market development, domestic and international institutional investors have taken an active approach to enhance their trading capability, and be ready when the Chinese options market launches. Itiviti recently interviewed a few tier-1 brokerage and trading firms about their business challenges and opportunities in China. In summary, a long-term vision, competent teams and take advantage of advanced trading technology is key to achieve better performance. Watch the videos and learn from their experience.
Blog With MiFID II regulation now less than 12 months away, the race to ensure compliance heats up. In a recent letter penned by Steven Maijoor ESMA Chair, Mr Maijoor expressed concerns on the “potential establishment of networks of Systematic Internalisers (SIs) to circumvent certain MiFID II obligations.” The implementation of MiFID I saw the introduction […] June 13, 2017
Blog It was a pleasure to have an opportunity to speak at the 2017 Americas Trading Briefing, which was graciously hosted by Goldman Sachs. As usual, the room was filled with more than 250 senior market participants and 25 expert speakers to discuss important topics, trends and issues we face together as the FIX Trading Community. […] June 7, 2017
Articles & Reports In recent years, exchange-traded funds (ETFs) have seen phenomenal activity and growth. Regulation, product innovation and investor appetite have driven global Assets under management (AUM) to record levels, while also fueling increasing market structure complexity and straining trading platform capabilities across the board. Itiviti, in conjunction with GreySpark Partners, recently engaged in a comprehensive review […] May 18, 2017
Automation & Testing For many sell-side firms, client onboarding and certification is a drag on productivity. The traditional methods used to perform these processes are manual, and therefore time-consuming. Because the process is so labor intensive, some firms maintain substantial backlogs of clients waiting for connections to trade. Slow onboarding is costing the business, as it leads to […] May 2, 2017