FiNETIK – Asia and Latin America – Market News Network

Asia and Latin America News Network focusing on Financial Markets, Energy, Environment, Commodity and Risk, Trading and Data Management

RTS Connects to Thailand Futures Exchange (TFEX)

Singapore/Bangkok March 8, 2012 – RTS Realtime Systems Group, a leading global trading solutions provider, today announced that the firm is now able to offer market access to the Thailand Futures Exchange plc (TFEX), a subsidiary of the Stock Exchange of Thailand (SET) Group.

Fueled especially by the interest in gold and the underlying arbitrage opportunities, the new RTS offering provides native connectivity to TFEX, giving RTS customers the ability to participate in one of Asia’s fastest growing exchanges. Volume in the TFEX Gold futures contract grew four-fold in the last two years.

Andy Woodhouse, RTS Managing Director, APAC, said, “Asia’s markets including TFEX are creating real opportunities for investors. New arbitrage opportunities across markets and easier access to the growing economies such as Thailand are all contributing to the rise in volumes in Asia. Our algorithmic trading solutions, including the RTD Tango algorithmic trading engine and the hybrid RTD Tango Trader solution, are ideally suited to detect and capture such opportunities. With customized, ready to deploy state-of-the-art algos, local and international traders can fully automate their strategies.” … read the full press release

Following the liberalization of brokerage licensing by the Thailand Securities and Exchange Commission, the Thailand Futures Exchange (TFEX) recently started accepting new members and welcoming new market makers.

Source: RTS, 08.03.2012

Filed under: Asia, Thailand, , , , ,

ASEAN Exchanges plans on track to promote ASEAN as an asset class

Following the November 2011 ASEAN Exchanges CEOs meeting, the ASEAN Exchanges CEOs today announced that the collaboration framework is on track towards meeting its goals of collectively promoting ASEAN as a highly investable asset class.

The Philippine Stock Exchange President and CEO, Hans Sicat said, “the marketing of the ASEAN Stars and the work on an ASEAN index series continues as planned with the ASEAN Exchanges collaboration members. The 2012 marketing activities for ASEAN Exchanges will be finalised at our scheduled CEOs meeting on December 2nd in Hanoi.”

The seven ASEAN Exchanges have a combined market capitalization of approximately USD2.0 trillion and more than 3,600 companies listed on their exchanges. Some of these companies are the largest and most dynamic companies in the world, including leaders in finance and banking, energy, telecommunications, commodities, automotive manufacturing and other industrial sectors.

The CEOs also announced the awaited roll-out plan of the ASEAN Trading Link which will see the participation of member exchanges taking place progressively in stages. The first stage will see the connectivity of Singapore Exchange and Bursa Malaysia in June 2012 and the Stock Exchange of Thailand added in August 2012 after its new trading engine goes live. The participation dates of the other ASEAN Exchanges collaboration members, namely, Hanoi Stock Exchange, HoChiMinh Stock Exchange, Indonesia Stock Exchange and The Philippines Stock Exchange will be announced at a future date.

Tajuddin Atan of Bursa Malaysia Berhad said, “The three bourses that will participate in the first stage of the ASEAN Trading Link represent approximately 70% of the market capitalization of the 7-member collaboration, thus offering substantial investment opportunities for investors.”

Source: MondoVisione, 17.11.2011

Filed under: Exchanges, Indonesia, Malaysia, Singapore, Thailand, Vietnam, , , , , , , , , , , ,

NYSE Euronext Accelerates Growth in Asia with Strategic Acquisition of Metabit, a Leading Provider of Market Access Products

— Strategically complements NYSE Technologies’ product portfolio and Asian offerings

— Addresses growing customer interest and expanding Asian financial marketplace

— In-line with NYSE Technologies’ strategy of building a global liquidity network

 New York and Tokyo – August 1, 2011 – NYSE Euronext (NYX) announced today it has entered into a definitive agreement to acquire Metabit, a leading Tokyo-based provider of high performance market access products throughout Japan and Asia. Metabit will operate as a product line within the NYSE Technologies portfolio. The transaction is expected to close in third quarter of 2011. Terms of the acquisition were not disclosed.

Skilled with in-depth experience and understanding of financial markets in Asia, Metabit specializes in streamlined, low-latency technology solutions that enable industry-leading access to financial markets across Asia. Metabit’s products connect buy-side order flow with sell-side exchange participants and are designed exclusively for low latency direct market access (DMA) and exchange connectivity to markets through-out Asia. The company is headquartered in Tokyo, with offices in Australia and Hong Kong. Metabit has built a trading community of more than 140 trading firms in Asia.

“Metabit’s products are built in Asia for Asia, and this combination fits our strategy, our connectivity business and our customer interests,” said Stanley Young, CEO of NYSE Technologies. “Metabit has a highly experienced and respected management team, and we recognize and value the success Metabit has had in Asia, especially in Japan. We will continue the further development of this local focus while also maximizing the value of the NYSE Euronext brand and relationships.”

Mr. Young continued: “Furthermore, Japan and Asia are priorities for NYSE Euronext and we believe this is absolutely the right time to further invest in the region. We fully expect this transaction to accelerate our efforts as a leading technology provider across the Asia-Pacific region. We look forward to welcoming Metabit and its customers to NYSE Euronext, and to delivering the benefits of Metabit to our customer community.”

Daniel Burgin, CEO of Metabit, said: “Our combination with NYSE Technologies will be highly beneficial to delivering innovative solutions to our customers and to accelerate achieving our long-term business goals. We remain committed to our local business focus and service quality in Japan and throughout Asia, whilst being strengthened by NYSE Technologies’ product suite that is highly synergetic to our local solutions. The people and products of our combined companies will provide significant expertise and scale to NYSE Technologies’ business in the region. Joining forces represents a truly exceptional opportunity to build on our local success in order to increase our value proposition to our Japan and Asia customer base. We now have the opportunity to leverage our assets with NYSE Technologies and move to the next level. For the benefit of Asia-based customers, we will now expand our reach and capabilities globally.”

 Metabit’s Asia franchise has seen excellent growth as a result of a persistent product and client strategy and investments into Asia. Today, Metabit covers all DMA sectors outside Japan, ranging from China (“B” shares), India, Hong Kong, Korea, Singapore, Taiwan, Thailand, Philippines, Malaysia, Indonesia, Pakistan, Australia and New Zealand. Metabit’s products, being built in Asia for Asia, focus to connect the local broker community in each country, in combination with the traditional group of global trading firms. Metabit will continue to resell and provide support to users of CameronFIX as they have since 2002.

 Upon closing, Mr. Burgin will head the NYSE Technologies Asia business and report to Mr. Young. Peter Tierney, Managing Director of NYSE Technologies will become the Chief Operating Officer of the combined business in Asia, and together they will lead the business operations.

Source; NYSE Tech, 01.08.2011

Filed under: Asia, Australia, China, FIX Connectivity, Hong Kong, India, Indonesia, Japan, Korea, Malaysia, News, Trading Technology, , , , , , , , , , , , , , , , , , , , , , , , , , , ,

Mexico: safer than Canada ? safer than Brazil!

K, so the headline is a bit of a fib. But a report on Mexico’s security situation has painted a more detailed picture than the one we hear about in the news most of the time. When I told friends I was moving to Mexico City, some asked if I would be provided with a bodyguard (no). Business travellers are thinking twice about coming, according to chambers of commerce here. But a detailed breakdown of violence released this week shows that, if you pick your state, you’re as safe—or safer—than in any other North American country.

Mexico’s overall homicide rate is 14 per 100,000 inhabitants: fearsomely high (and possibly an underestimate, given the drugs cartels’ habit of hiding bodies in old mines), but quite a lot lower than its great Latin rival Brazil, whose rate is more like 25. As the chart below shows, Mexico’s death rate is bumped up by extraordinarily high levels of violence in four states: Chihuahua (home of Ciudad Juárez, widely labelled the world’s most murderous city), Durango, Sinaloa and Guerrero (see p.29 of this document). Of the rest, some are blissfully serene: Yucatán, where tourists flock to swim with whale sharks and clamber over Chichen Itzá, has a murder rate of 1.7—slightly lower than Canada’s average of 2.1.

Read full article in the Economist

Before I am buried an avalanche of polite Canadian emails, I should acknowledge that comparing an entire country with one quiet state is hardly fair: there are no doubt parts of Canada where no-one has been so much as kicked in the shin for decades. But Mexico’s predicament is worth highlighting, because the extreme violence around its border with the United States colours people’s view of the rest of the country, though much of it is pretty quiet. A third of Mexico’s states hover around 5 murders per 100,000, about the same rate as the United States. Another third are around 8 per 100,000, similar to Thailand, for instance. A handful of states have rates in the teens—like Russia, say—and a couple are in the low twenties, a little lower than Brazil’s average. Then you have the chaos of the four very violent states, which sends the average soaring.

The carnage in Mexico’s badlands is not to be underestimated, and nor does it seem to be getting any better. Business travellers should certainly watch out in places such as Juárez and, these days, even in cities such as Monterrey. But people doing business south of the Rio Grande should remember that, even on average, Mexico is a less murderous country than places such as Brazil, and that once you avoid the hotspots, it’s downright safe.

Source: The Economist, 27.08.2010

Filed under: Brazil, Latin America, Mexico, News, Thailand, , , , , , , , ,

Asean exchanges select Nyse Technologies to build trading network

A group of Asean stock exchanges have appointed Nyse Technologies to build a direct market access electronic trading link.

Last February Bursa Malaysia, the Philippine Stock Exchange, Singapore Exchange and the Stock Exchange of Thailand outlined plans to create a single access point to ease cross-border trading and attract more international fund flows into the region. Indonesia’s exchange was initially part of the group but is no longer involved.

The partners have now signed a letter of intent appointing Nyse Euronext’s IT unit to design, build and manage the technology required for the trading link.

Nyse Technologies says its system will be underpinned by a resilient networking infrastructure that will interconnect the Asean member exchange’s and, through them, their respective communities.

The system will include services that tap this network to provide integrated market data feeds from all the participating markets and a standardised entry point for trading. Expansion of the trading link’s markets will be helped by the risk management and controls put in place, says Nyse.

In addition, the system will integrate with the Nyse Euronext communication network infrastructure, SFTI. This will give STFI members streamlined and cost effective access to trading in the Asean Trading Link markets.

Duncan Niederauer, CEO, Nyse Euronext, says: “The Asean Trading Link will strengthen the competitiveness of the member exchanges and enable them to better serve their customers. National and regional interest will be well served by giving investors greater access to global capital to facilitate new development, growth and wealth creation.”

Francisco Edralin Lim, CEO, Philippine Stock Exchange, adds: “Nyse Technologies brings to the table vast experience in the Exchange solutions business and we are confident that they will deliver cutting edge solutions that meet all our requirements. We are also excited about the possibilities of leveraging their extensive order routing networks to bring order flow into the Asean markets.”

Source, Finextra, 08.02.2010

Filed under: Asia, Exchanges, Malaysia, News, Singapore, Trading Technology, , , , , , , , , , , , ,

Global warming threat for Asia financial hubs – Yangtze ‘facing climate threat’

The report, produced by WWF, the environmental pressure group, puts the two financial hubs in the top 10 cities threatened by climate change in Asia, the region widely believed to be most vulnerable to rising global temperatures.

It warns that Hong Kong is in danger from higher sea levels, which are likely to rise 40cm-60cm in China’s Pearl River delta by 2050, increasing the area of coastline that is vulnerable to flooding by up to six times.

Costs imposed by typhoons are also likely to rise dramatically, the report says, noting that 14 of the 21 extreme storm surges between 1950 and 2004 occurred after 1986.

The number of nights when Hong Kong temperatures rise above 28°C has risen almost fourfold since the 1960s, while the number of winter nights when the temperature falls below 12°C is predicted to fall from an average of 21 to zero within 50 years.

For Singapore, the report says, the sea level is forecast to rise by 60cm by the end of the century, eroding coastal protection and decreasing the shoreline of the city state, making it more vulnerable to storm surges and flooding.

The report says climate change could also increase the prevalence of dengue fever. The number of cases has been rising in periodic outbreaks and the last significant peak, in 2007, saw the third highest number of outbreaks ever.

Dhaka, the Bangladeshi capital, heads the list of the most vulnerable cities, mainly because of its position in a big river delta already subject to periodic flooding, its low average height above sea level and its poverty, which makes protection and adaptation more difficult.

Other cities at risk include Jakarta and Manila, which rank equal second, Calcutta and Phnom Penh, which are equal third, Ho Chi Minh and Shanghai, equal fourth, Bangkok, fifth, and Kuala Lumpur, which ties with Hong Kong and Singapore for sixth place.

The report calls on developed countries to agree to shoulder the bulk of the costs required to reduce greenhouse gas emissions, to finance an adaptation fund to pay for changes required in developing countries, and to provide recompense for losses and damage caused by climate-related catastrophes.

However, the report also says that vulnerable cities and national governments should take action themselves, including better management of coastal habitats and ecosystems.

The report is timed to influence the 21 heads of government attending this week’s Asia Pacific Economic Co-operation summit in Singapore, before the global climate change summit in Copenhagen next month.

Source: FT, 11.11 2009 by Kevin Brown in Singapore

The Yangtze river basin is being increasingly affected by extreme weather and its ecosystems are under threat, environmentalists say.

In a new report, WWF-China says the temperature in the basin area of China’s longest river has risen steadily over the past two decades.

This has led to an increase in flooding, heat waves and drought.

Further temperature rises will have a disastrous effect on biodiversity in and along the river, the report says.

The WWF – formerly known as the World Wildlife Fund – predicts that in the next 50 years temperatures will go up by between 1.5C and 2C.

The group’s report is the largest assessment yet of the impact of global warming on the Yangtze River Basin, where about 400 million people live.

Data was collected from 147 monitoring stations. The report’s lead researcher, Xu Ming, said the forthcoming Copenhagen negotiations on climate change would have an obvious and direct influence on the Yangtze.

“Controlling the future emissions of greenhouse gases will benefit the Yangtze river basin, at the very least from the perspective of drought and water resources,” he said.

The report says the predicted weather events and temperature rises will lead to declines in crop production, and rising sea levels will make coastal cities such as Shanghai vulnerable.

Some of the problems could be averted by strengthening river reinforcements, and switching to hardier crops, its authors suggest.

Source: BBC, 10.11.2009

Filed under: Asia, China, Energy & Environment, Hong Kong, India, Indonesia, Japan, Malaysia, News, Risk Management, Singapore, Thailand, Vietnam, , , , , , , , , , , , , , , , , , , , , , , , , ,

ASEAN markets cross trading links in demand – TABB Group

In new equity markets research published today, TABB Group says US and European demand for electronic linkage to Association of Southeast Asian Nations (ASEAN) exchanges is strong and primed to expand, as seamless access will attract brokers already trading in other parts of Asia. However, there is a wide range of needs across the different market segment, including direct market access (DMA), low-cost versus real-time market data, advanced order types, and reliable trading platforms.

TABB’s senior analyst Kevin McPartland, who authored the ASEAN Equity Markets Pinpoint report, an industry update on equity trading in the ASEAN region covering the Indonesia, Philippines, Thailand, Vietnam, Malaysia and Singapore exchanges, says the global financial crisis had little impact on growing buy-side demand for trading in ASEAN markets.

“More seamless access will drive brokers already operating in other parts of Asia to begin trading in the ASEAN markets,” he says, with the sell side set to benefit most from that seamless access. Explaining that the availability of real-time market data is crucial for all trading in the ASEAN markets, and that real time data is a requirement for the sell side even when trade volumes are low or non-existent, he adds, “High costs and time zones do tend to limit buy-side market data usage outside of the region.”

Addressing the relationship between the buy side and sell side, McPartland says that although no single broker currently dominates across all Asian markets, over 90% of buy-side firms are unwilling to give brokers full discretion over their orders. However, while the buy side does look to their brokers for market access, they agree that more seamless access would lower costs for execution and market data. There is also significant support for the idea of central ASEAN execution venue, McPartland adds.

The report’s in-depth coverage includes 24 charts:

  • Support for a central ASEAN venue
  • Improving ASEAN trading
  • Sell-side interest in ASEAN linkage
  • % of bulge-bracket participants trading in each market
  • Impact of the financial crisis on ASEAN interest
  • Roadblocks to sell-side trading in ASEAN markets
  • Buy-side broker usage – all Asia ·
  • Buy-side broker usage – ASEAN markets
  • Top brokers by country (by # of mentions)
  • Bulge-bracket participants trading in each market
  • Mid-tier participants trading in each market
  • Buy-side interest in a seamless ASEAN linkage
  • Roadblocks to buy-side access of ASEAN markets
  • Average number of buy-side orders per week
  • Average blended commission rates (bps)
  • % for which counterparty risk is an issue
  • Importance of each component when trading in ASEAN markets
  • Markets providing real-time market data to sell side
  • Market data sources for sell side
  • Markets providing real-time market data to buy side
  • Reasons for buy side’s lack of market data
  • How the buy side trades ASEAN markets
  • % of buy side using multiple data providers ·
  • Sell-side and buy-side market data providers

TABB Group collected data through interviews with heads of electronic trading from 12 top global broker-dealers, 9 hedge funds and 14 institutional asset managers. On the buy side, participants had combined global assets under management (AuM) of approximately $6 trillion and are currently trading in Asia from slightly under $10 million to over $5 billion monthly.

Source: MondoVisione, 23.10.2009

Filed under: Asia, Data Management, Exchanges, Indonesia, Malaysia, Market Data, News, Singapore, Thailand, Trading Technology, Vietnam, , , , , , , , , , , , , , , , , , , , , ,

Emerging Asia inflation tumbles, more rate cuts seen

Inflation rates slowed once again in emerging Asia, pointing to a fresh round of interest rate cuts in Thailand and Indonesia as the region battles to reinforce tentative signs that economies may be on the path to recovery. Indonesia said annual inflation stood at 7.3 percent in April, its lowest level since December 2007, while South Korea also reported a fall in April inflation to a 14-month low of 3.6 percent. However, Thailand saw a fourth straight month of falling prices or deflation with April consumer prices falling 0.9 percent from a year earlier.

Core consumer prices in Japan fell 0.1 percent in March from a year earlier, heralding what the Bank of Japan expects to be two-years of deflation although the central bank has dismissed the idea of an economically damaging spiral of falling prices.

Prices are tumbling across the world as buyers tighten their belts in the face of the global recession and because of the collapse in commodities prices from record high levels last year. Crude oil for example, has dropped to around $50 a barrel from its near $150 record set in July.

Central banks globally have slashed rates in the hope that cheaper credit will spark a revival in their economies. Government have spent hugely on fiscal stimulus package and some data suggests the worst of the crisis may be over.

In Asia, exports have collapsed as recession in major demand centres such as the United States and Europe hammered demand. But signs that the recession is easing has raised hopes that Asia’s export engine may see a return of some demand, albeit from low levels.

Indeed, major exporters South Korea and Japan have both seen a pick up in monthly exports even if they are still much lower than year-earlier levels. Annual falls in exports elsewhere have become less severe.

SOME WILL CUT, SOME WILL NOT

In Thailand, the fall in prices is seen as largely technical and reflective of the sharp falls in the past year in commodities prices rather than the result of falling demand.

The latter is feared by policy makers because it can add an extra weight on growth or push an economy deeper into recession.

“With very, very little risk of inflationary pressures, and with monetary conditions still fairly tight, there remains a scope to cut rates to support growth,” said Carl Rajoo, an economist at Forecast in Singapore said of the Bank of Thailand.

“The central bank is likely to make a measured cut in May, and then wait and see before additional loosening is started,” he said.

The Bank of Thailand is due to review policy next on May 20, when analysts expect a 25 basis-point cut in the policy rate to 1.00 percent, the lowest level since the central bank started targeting inflation in 2000.

The Bank of Thailand has already cut its policy rate by 250 basis points since December to support an economy widely seen as in recession and pressured not only by the global downturn but by political unrest.

In Indonesia, an easing in food price pressures and a 14 percent rise in the rupiah against the dollar since early March, making imports more expensive, has weighed on prices.

Inflation has come down steadily from above 12 percent just seven months ago giving the central bank room to keep cutting interest rates to support Southeast Asia’s largest economy, whose exports are falling at close to 30 percent.

“We expect Bank Indonesia to cut rates by 25 basis points in May and (in) June,” said Helmi Arman, an economist at Bank Danamon in Jakarta. The central bank next meets on Tuesday.

However, South Korea’s central bank is seen holding fire for now.

It has skipped rate cuts at its last two meetings and is expected by financial markets to leave rates unchanged at a record low of 2.0 percent at its next meeting on May 12.

Inflation has fallen steadily, but growing optimism the economy may be starting to turnaround suggests the central bank will save its monetary ammunition for now. Since the financial crisis blew up last year, it has cut rates by an unprecedented 325 basis points.

South Korea’s inflation rate fell to 3.6 percent in April, its lowest level in 14 months but with some signs in the trade-reliant country that exports are picking up, the central bank is unlikely to use inflation as a cue to cut rates again.

The Philippines is expected to report on Tuesday that its consumer prices inflation fell to a 16-month low of 4.7 percent in April, also paving the way for the central bank to cut its overnight borrowing rate, already a 17-year low of 4.5 percent, at its next meeting on May 28.

Source: Reuters, 04.05.2009

Filed under: Asia, Indonesia, Japan, Korea, News, Thailand, Vietnam, , , , , , , , ,

Asian electronic trading revenues to decline – TABB

Electronic trading revenues are anticipated to fall in the Asia-Pacific region, while the development of dark pools is expected to stall, according to new research from consultancy TABB Group.

In ‘Asian Equity Trading 2009’, TABB predicts that income from electronic trading will slip 16.9% to $815 million this year, from $981 million in 2008. This follows a similar decrease of 17.7% in institutional value traded in the previous 12 months, a drop that affected overall trading strategies in Asia, according to TABB.

“In the second half of 2008, there was a significant pullback leading into the first quarter of 2009,” said Matt Simon, TABB Group analyst and author of the report. “Traders saw liquidity sink.”

The study, which examines institutional trading across Japan, Hong Kong, Korea, Australia, Singapore and Taiwan, estimated that dark pool uptake in Asia-Pacific would take longer to develop than in the US and Europe. TABB predicted that by 2010 3.5% of value traded would be matched off-exchange in Japan and 1.5% in the five other market centres examined. Volatile market conditions have also marked a return to VWAP/TWAP algorithmic trading strategies from buy-side traders in the region, the report added.

Despite the decline in electronic trading revenues, global expansion in the region is expected to continue, driving connectivity to new markets such as Malaysia, Thailand and Indonesia.

Source: The New Trader, 23.04.2009

Filed under: Asia, Hong Kong, Indonesia, Japan, Korea, Malaysia, News, Singapore, Thailand, Trading Technology, , , , , , , , , , , ,

Asian equity electronic trading revenues to sink in 2009 – Tabb

Equity electronic trading revenues in Asia Pacific are set to see a 17% fall this year, with liquidity sinking during the downturn, according to research from Tabb Group.

Tabb predicts revenues will drop to $815 million, down 16.9% from $981 million in 2008. This follows a 17.7% decrease in institutional value traded from 2007 to 2008, a year-over-year drop that has affected overall trading strategies across Asia.

Tabb says the global downturn hit just as electronic trading was taking hold in the region, forcing many hedge funds to curtail electronic strategies or simply shutter operations.

Matt Simon, Tabb analyst and report author, says: “In the second half of 2008 there was a significant pullback leading into the first quarter of 2009. Traders saw liquidity sink.”

The research also highlights the slow rate of dark pool trading adoption in the region. Dark pools are estimated to account for at least 10% of all equity trading in the US whilst the introduction of MiFID has spurred their growth in Europe.

They are far less popular in Asia although last month Goldman Sachs launched its Sigma-X dark pool equity trading system in Hong Kong, while CLSA, Instinet and Investment Technology Group also run platforms in the region.

Yet Tabb estimates that only 3.5% of value traded will be matched off-exchange in Japan by 2010, up from 1.2% in 2008. In Hong Kong, Korea, Australia, Singapore and Taiwan, there will be just 1.5% traded off-exchange, although this compares to a paltry 0.3% in 2008.

Other trends indentified by the report include continued global expansion, which is driving connectivity to new markets such as Malaysia, Thailand and Indonesia

In addition, buy-side firms have returned to volume-weighted average price (Vwap) and trade weighted average price (Twap) strategies amidst current volatile market conditions. Meanwhile demand for transaction cost analysis is increasing with 35% of buy-side firms using some type of independent TCA.

Source: Finextra, 23.04.2009

Filed under: Asia, Australia, Exchanges, FIX Connectivity, Hong Kong, Indonesia, Japan, Korea, Malaysia, Singapore, Thailand, Trading Technology, , , , , , , , , , , , , , , , ,

Asean bourses pledge electronic trading link

So far Southeast Asia’s stock exchanges have been good at signing MOUs but not so good at actually harmonising markets. Will this time be different?

Five Southeast Asian stock exchanges have signed an agreement to establish a single electronic trading link for regional or global investors to access their markets on a uniform basis, and thereby establish Asean markets as an asset class.

The mechanism among the five countries — Indonesia, Malaysia, the Philippines, Singapore and Thailand — will enable their clearing houses to act as central counterparties that can clear and settle cross-border trades among them.

Brokers with seats in any of the five exchanges would not need to consider other participating exchanges as foreign, thereby reducing risk. Investors may come to see Asean as a trading bloc, with economies of scale helping to bring down transaction costs and improve liquidity. Creating a single market would spur liberalisation in other areas.

That, at least, is the theory, as announced after business hours yesterday. Executives at these bourses have been talking about building an electronic link for years. These markets are small, which drives up the cost of cross-border trades.

At a time when major bourses around the globe are tying up, alternative electronic trading venues are penetrating the region, and events are being driven by pan-European directives such as Mifid, Southeast Asia’s fragmented markets risk falling well behind. New technologies such as dark pools and direct-market access trading have marginalised them further, because of their illiquidity.

So exchange officials and politicians have long recognised the need to harmonise their systems in order to remain attractive to global investors, market Southeast Asia as an asset class, and enhance the pool of capital available locally.

But politics have gotten in the way: Singapore is the obvious hub for the region, a fact that Singaporean officials like to point out, which makes the other players jealous and unwilling to give up control over their little patches.

Nonetheless, there has been bilateral progress. SGX CEO Hsieh Fu-Hua first proposed such a multilateral link in 2006. The following year, SGX and Bursa Malaysia unveiled a cross-border electronic link for trading securities.

Now, along with this announcement of Asean-wide cooperation, SGX and the Stock Exchange of Thailand are also pledging to jointly promote market activities, as well as operational and regulatory information, and discuss the idea of cross-border trading of securities and derivatives.

SGX’s Hsieh says the e-trading link will be operational sometime in 2010. By putting a date on the project, he and his counterparts at other exchanges are taking a concrete step towards harmonising their markets for the first time.

Source: AsianInvestor, 24.02.2009

Filed under: Asia, Exchanges, News, Trading Technology, , , , , , , , , , , , , , , , ,

Thai bourse to launch Islamic index in Q2

The Stock Exchange of Thailand plans to launch an Islamic Index in the second quarter of this year, the bourse’s Group Head of Market Development Santi Kiranand said Monday.

The index, to be called the FTSE SET Shariah Index, will comprise 55 stocks with a combined market capitalisation of around THB1.7 trillion (US$49 billion), equivalent to 47% of the total stock market, Santi told reporters.

The bourse is scheduled to meet investors in the United Arab Emirates and Abu Dhabi in the second half of this year to promote the Islamic index, he added.

The exchange also plans to launch a social responsibility index in the third quarter. Stocks under this index would account for 10% to 20% of total market capitalisation, Santi said.

Source: Intellasia | Dow Jones, 04.02.2009

Filed under: Exchanges, Islamic Finance, News, Thailand, , , , , , , ,

Asian Exchanges: Opportunities in Asia’s SouthEast Asian Markets

MALAYSIA-With the financial crisis expected to slow technology adoption throughout the Asia-Pacific region in the coming year, many are expecting some of Asia’s smaller exchanges to play a growing role in the market.

The Vietnam, Thailand and Malaysia exchanges, for example, lag behind some of their neighbors in terms of trading technology. These markets lack some of the basics, and technology vendors in the region will benefit as they fill in the gaps.

Malaysia introduced a new trading platform in early December aimed at improving latency and allowing traders to access the exchange electronically. “As the Malaysian marketplace progresses, we must leverage new technologies to allow market users and investors access to more trading opportunities,” says Dato’ Yusli Mohamed Yusoff, CEO of the Bursa Malaysia Berhad. As the exchange goes, local brokerages will likely follow suit, adopting new technologies to stay competitive.

Traders and technology vendors also have their eyes on Vietnam and Thailand. GL Trade is planning on adding Thailand to its own DMA platform in 2009, going through local brokerage Seamico Securities Public Company Ltd.

Vietnam operates with an electronic matching system, but traders are still waiting for the exchange to improve its communication with brokerages. Other small exchanges are expected to come on the scene in 2009, including the Cambodian Stock Exchange, a joint venture between the Korea Exchange and the Cambodian government. The exchange may be small, but for technology vendors, the new markets will help keep sales up in tough times.

Source: Watersonline by Lauren Hilgers, 06.01.2009

Filed under: Exchanges, Indonesia, Malaysia, News, Singapore, Thailand, Trading Technology, Vietnam, , , , , , , , , , , , ,

Asia-Pacific Wealth Report 2008 -GapGemini Merrill Lynch

Down Load: ASIA PACIFIC Wealth Report 2008 GapGemini & Merrill Lynch

Source: GapGemini – Merrill Lynch, December 2008

Filed under: Asia, Australia, Banking, China, Hong Kong, India, Indonesia, Japan, Korea, Library, Malaysia, Services, Singapore, Thailand, Vietnam, Wealth Management, , , , , , , , , , , , , , , ,

Asia Pacific exchanges added to Tenfore’s global coverage as investors seek new opportunities

Global market data provider Tenfore has expanded its global coverage with the addition of comprehensive “Level Two” market data1 for four Asian and Pacific markets. Gordon Bloor, CEO of Tenfore said: “The addition of New Zealand, The Philippines, Bursa Malaysia and Thailand reflects investment trends with investors seeking new opportunities, with a particular focus on the Far East. Full article click here.

Source: Tenfore 16.07.2008

Filed under: Data Management, Data Vendor, Market Data, News, Reference Data, , , , , , , , , , , , , , , , ,