After an 18-year hiatus, Chinese Government bond futures are back. After more than a year of mock trading the CGB finally went live on September 6, racking up an impressive first day’s volume of 36,635 contracts. The celebratory first day gave way to more humdrum reality the following week, however, as turnover dropped off toward 5000 a day, where it has been bouncing around since. Open interest, a more robust measure of the breadth of participation, has been climbed steadily from 2,959 after the first trading day and has also settled to around 4500 contracts as of early October.
The European Commission’s overhaul of securities markets regulation in Europe intensified with the recent publication of legislative proposals for the revised Markets in Financial Instruments Directive and Regulation (MiFID and MiFIR, respectively). The legislative package, currently under negotiation in the European Parliament, puts transparency at the forefront with ambitious proposals to shed light on trading in practically all financial instruments –— from equities to bonds, derivatives, and even emissions trading allowances.
On 1 February, the London Stock Exchange launched its order book for retail bonds. Opened in response to increasing demand from private investors in the UK, the initiative aims to make trading in bonds as straightforward as trading in shares by offering continuous, transparent electronic access to a range of UK gilts and corporate bonds for the first time. The market is supported at launch by three dedicated market-makers, and initially offers trading in 60 of some of the most recognisable fixed-income securities currently listed in London.
Fixed-income markets across Europe have undergone significant evolution in the past twenty years. When Mercato dei Titoli di Stato (MTS) was founded in 1988, it represented the first step in a large scale transformation of the secondary market for European government debt. Desire from the Italian Treasury to make sure the debt it issued was quoted in a centralised, electronic and transparent (and thus easy-to-monitor) environment was the driving force behind its launch, and other European governments soon followed suit Since its privatisation in 1997, MTS Group’s European exchanges have grown to represent a continent-wide facility for the secondary market in the public debt of fifteen countries, and today over €2 trillion worth of trading activity takes place on the Group’s cash markets each year.
South Africa’s debt market when measured in terms of debt issued comprises but a fraction of the world’s debt markets combined, yet it constitutes the lion’s share of the African debt market. It boasts sophistication and efficiency that match those of many of the bigger debt markets in the developed world. It is thus both a David and a Goliath. In its former role, it is often a taker of global financial market developments that from time to time ripple out globally, while in its latter role it is a leader on the continent, and possibly even among emerging markets elsewhere.
Paris (July 21, 2011) – The World Federation of Exchanges (WFE) today released the half-year trading figures for regulated markets worldwide. Strong growth was registered in the market capitalization of stock exchanges, a measure of the total value of listed companies. Exchange-traded futures and options registered higher volumes in most asset classes. The complete report may be viewed here:
This survey is conducted by Johannesburg Stock Exchange
(11 October 2010, Paris) Chairmen and Chief Executives from more than 68 of the world’s leading exchanges gathered in Paris this week for the 50th General Assembly and Annual Meeting of the World Federation of Exchanges (WFE
Panel 5 Fixed income markets and transparency Summary