NO 244 – JUNE 2013

WFE Focus May 2013
New products

Borsa Italiana launches single stock dividend futures on IDEM

Borsa Italiana’s IDEM, the equity derivatives market, has broadened its offering by launching new futures on dividends of single European blue chip stocks. The new product has been launched in response to investors demand for trading the expected dividends of 23 major listed European issuers.

CME Group launches palm oil swaps contract

On 3 June 2013, CME Group launched OTC palm oil swaps, subject to regulatory clearance. The contract will be listed with the Chicago Board of Trade and based on crude palm oil futures prices on Bursa Malaysia Derivatives.

CME Group to expand agricultural options offering

CME Group will expand its agricultural options offering through the introduction of three new options on the recently-acquired KCBT. The new products are the KCBT weekly wheat options, the KCBT-CBOT wheat spread options and the MGEX-KCBT wheat spread options. They will be available for trading on 1 July 2013, pending CFTC review.

Eurex to list MSCI Emerging Markets index derivatives

On 1 July 2013, Eurex Exchange will introduce the second tranche of derivatives on global MSCI indices. Futures and options will be offered based on the following regional indices: MSCI Emerging Markets and the regional sub-indices MSCI EM EMEA, MSCI EM Latin America and MSCI EM Asia. Futures are also being launched on 16 emerging market country indices.

Hong Kong Exchanges introduces new mainland-related futures

Hong Kong Exchanges and Clearing plans to introduce new stock index futures and stock futures on three A-share ETFs as part of its continuing efforts to expand its suite of Mainland China-related products. The new stock index futures contract will be based on the CES China 120 index. It will be introduced on 8 July 2013.

Hong Kong Exchanges lists first RMB bond ETF

On 18 June 2013, Hong Kong Exchanges and Clearing listed Asia’s first offshore RMB bond ETF. It is a RMB-denominated physical ETF that will be traded and settled in both Hong Kong dollars and RMB.

London Stock Exchange Group launches UK single stock options

From 10 June 2013, Turquoise Derivatives, part of London Stock Exchange Group, offers trade reporting in 19 UK single stock options based on leading UK-listed mining, oil and gas equities. The underlying stocks are predominantly constituents of either the FTSE 100 or FTSE 250. The new products will clear through LCH.Clearnet.

Moscow Exchange launches trading of Russian mortgage certificates

On 22 May 2013, the Moscow Exchange launched for trading mortgage-backed participation certificates on its quotation list. The mortgage participation certificates are the first securities of such type ever registered in Russia and admitted to on-exchange trading.

Moscow Exchange launches first ETC futures contract

Moscow Exchange has launched the first Russian Exchange Traded Contract on shares traded on foreign trading floors. The introduction of this new derivatives instrument to the Russian market has been driven by recent changes in regulations adopted by Russia’s Federal Financial Markets Service.

Moscow Exchange launches futures calendar spreads

On 5 June 2013, Moscow Exchange launched a new financial instrument, the calendar spreads. The first derivatives products concerned are the RTS index futures, the USD/RUB FX futures and gold futures calendar spreads. A futures calendar spread is a valuable instrument among professional investors trading futures contracts. It implies one transaction where a futures contract of one delivery month is bought and the same futures product of another delivery month is sold. It allows investors to avoid slippage risk while rolling over futures contacts. In addition, it provides new strategies to trade futures.