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Dark Liquidity

The first WFE events in the Year of Snake appropriately took place in the Asia / Pacific region with visits to exchanges interested in joining the Federation, as well as a meeting open to all members as the Working Committee reviewed priorities for 2013.

 

WFE Interview with the Muscat Securities Market

The Muscat Securities Market started its operations in the year 1989 with 48 joint stock companies and with a market capitalization of about 1 billion USD. During this phase which started from 1989 to 1998 the securities industry in Oman witnessed a gradual and consistent change towards introducing the standards that were applicable in modern exchanges.

WFE Interview with the Abu Dhabi Securities Exchange

The Abu Dhabi Securities Exchange (ADX) was established on November 15 of the year 2000 by Local Law No. (3) Of 2000, the provisions of which vest the market with a legal entity of autonomous status, independent finance and management. The Law also provides ADX with the necessary supervisory and executive powers to exercise its functions. ADX is a market for trading securities; including shares issued by public joint stock companies, bonds and Sukuk issued by governments or corporations, Exchange Traded Funds (ETF), and any other financial instruments approved by the UAE Securities and Commodities Authority (SCA).

WFE Interview with the Zhengzhou Commodity Exchange

Zhengzhou Commodity Exchange (ZCE), the first experimental futures market approved by the State Council of China, was established on October 12, 1990. ZCE has been under direct supervision of the China Securities Regulatory Commission (CSRC) since 1998.

WFE Interview with the Dalian Commodity Exchange

Established on February 28, 1993, Dalian Commodity Exchange (DCE) is one of the four Chinese mainland futures exchanges approved by the State Council. Presently, it has listed 9 futures products spanning the agricultural, chemical and mineral resources sectors, including corn, No. 1 soybean, No. 2 soybean, soybean meal, soybean oil, palm oil, LLDPE, PVC and Coke.

WFE Interview with the China Financial Futures Exchange

CFFEX is a young exchange,formally established in Shanghai on September 8, 2006. It is the sole financial futures exchange and sole corporate exchange in Mainland China.

On April 16, 2010, CFFEX launched its first product, the CSI 300 stock index futures. Since then, operations have run stably, experiencing steady growth in volumes and playing an increasingly important role in risk management in China’s capital markets.

WFE Publishes 2012 Global Market Highlights

global market capitalization increased 15.1% in 2012 , the volume of all products traded on WFE member exchanges fell significantly. According to worldwide statistics compiled by the WFE, the value of Electronic Order Book (EOB) share trading was down 22.5%, and the number of derivative contracts traded on-exchange decreased by 20%. annual survey of global markets found that while the global market capitalization increased 15.1% in 2012 , the volume of all products traded on WFE member exchanges fell significantly. According to worldwide statistics compiled by the WFE, the value of Electronic Order Book (EOB) share trading was down 22.5%, and the number of derivative contracts traded on-exchange decreased by 20%.

 

 

WFE Interviews Greg Wojciechowski from Bermuda Stock Exchange

Being the President & CEO of one of the smallest member exchanges of the WFE and the first of many to author pieces in this new feature of the monthly Focus publication, I feel the considerable weight to deliver an informative and relevant discussion on the BSX and our contribution to not only Bermuda’s domestic economy but also to the global capital markets.

ETF Trading - Real-time Pricing and Intraday Liquidity are Two Benefits that ETFs Offer over Mutual funds

Exchange Traded Funds “ETFs” are similar to mutual funds in many ways but they have many significant differences. Real-time pricing and intraday liquidity are two of the most obvious differences between exchange-traded funds with their mutual fund cousins. Mutual funds create their price or NAV (net asset value) once a day at the end of the day based on pricing the underlying holdings after the close of trading when the fund has priced its assets and hence created its price or NAV for that day. Once the mutual fund has been priced, the mutual fund company transacts all fund unit buy and sell orders that have been accumulated during the day. This pricing process does not allow investors to know beforehand the price at which their buy or sell order will be transacted at. Many mutual funds will often charge front load fees, pay rebates and often back end loads.

Initial Steps Towards a Regulation of Exchange Traded Funds

Since their creation in Canada in 1990, ETFs have grown from a fairly niche product into a full-fledged asset class with assets under management (AuM) amounting (excluding ETPs) to some USD1.6tn worldwide at the end of September 2012, i.e. about 6.4% of the global AuM of mutual funds. As a matter of fact, the few incentives of fund distribution channels to promote them was an initial impediment to their marketing, but those specialized players who have promoted them have grown into global firms as ETFs have met significant demand, particularly since the advent of the financial crisis due to their specific features (low fees, transparency and liquidity). Throughout this period, ETFs were actually one of the few fund classes that kept recording positive net fund inflows. ETFs thereby reached out to an increasingly wider client base, extending from their traditional, institutional remit into the high-net worth and retail investor space.

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