NO 230 – APRIL 2012
Reform and innovation in Chinese capital markets

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WFE Focus January 2012

Global leaders of derivatives exchanges and clearing houses assembled 16-17 April for the 29th IOMA Conference, the annual derivatives Conference hosted by the WFE, to focus on the commercial and technological developments impacting derivatives markets. The conference also introduced the full annual IOMA survey on derivatives market statistics. The preliminary findings released on March 1, highlighted that 25 billion derivative contracts were traded on exchanges worldwide in 2011 - an increase from the 22 billion traded in 2010. Between 2006 and 2011, the number of derivative contracts traded on exchange has more than doubled. While last year’s growth rate (+12%) remains high, it is lower than the one observed in 2010 (+25%).

The conference also featured a number of panel discussions that highlighted the significance of regulated derivatives exchanges and clearinghouses to the global financial system. Topics most current to the trading landscape, such as transparent public pricing and reliable systems for risk transfer and management was addressed in sessions.

IOMA exchanges have already played a major role in reducing financial instability by supporting the G20’s work since its Pittsburgh summit to promote more extensive use of the public marketplaces and clearing houses. The exchanges are committed to transforming the derivatives trading industry in order to ensure that risk can be properly priced, managed and remunerated. Additionally, IOMA members have been active in OTC trade matching and trade reporting for several years now, and have successfully netted trillions of dollars of contracts.

Jorge Alegria, IOMA Chairman and Chief Executive Officer of the Mexican Derivatives Exchange (MexDer), believes the stellar lineup of participants will offer a unique perspective on the important changes in the derivative space. “The topics that we are discussing have major implications in the derivatives industry, and the debate about trading on- or off-exchanges,” explains Alegria, “Exchanges have operated without problems throughout the series of crises that beset the world’s financial system since 2007, offering standardized products and liquidity to their customers in reliable, efficient and fair regulated markets.”

Alegria welcomed IOMA delegates on Monday 16 April shortly after a keynote address from Mark Hoban, Member of Parliament and Financial Secretary to the British Treasury. Sessions also focused on the global risk transfer market, the clearinghouse competitive landscape, and the measures that need to be taken in the aftermath of MF Global.



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