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A STUDY ON OVERSEAS DERIVATIVE EXCHANGES

Prepared by :SILVEE KAMBOJ PALASH JANA SUMITA MONDAL (10DF 006) (10DFO14) (10DF O23)

SWAROCHIS PANDEY(10DF 032) MANISH KUMAR (10 DF 041)

Flow of presentation

     

Introduction
HONG KONG DERIVATIVE EXCHANGE JOHANNESBURG STOCK EXCHANGE AUSTRALIAN SECURITIES EXCHANGE EUREX COMPRATIVE ANALYSIS CONCLUSION

INTRODUCTION


Derivative exchanges clearly defines the rules and regulations to control the trade. Responsible for monitoring trade and market participant Exchanges ensure smooth trading and also dictate sanctions in the event that a rule is violated A growing number of exchanges provide the opportunity of settling transactions through a central counterparty. Within the broad spectrum of derivatives, futures exchanges offer standardized products such as options and futures

 

HONG KONG DERIVATIVE EXCHANGE




HSI was started on November 24, 1969, and is currently compiled and maintained by Hang Seng Indexs Company Limited Hong Kong Exchanges and Clearing (HKEx) was created in 2000 as the holding company for the Stock Exchange of Hong Kong, provide an electronic platform for the trading, settlement and clearing of securities and derivatives. Hong Kong Exchanges & Clearing ranked as the world's 20th-largest derivatives exchange by volume in 2010 with over 116.05 million contracts

Contd.
  

The Hong Kong Futures Exchange was established in December 1976 as the Hong Kong Commodities Exchange. Options were added in 1993, with automated trading launched in November 1995. The trading floor was closed in 1999. In 2010, the exchange reported a record volume year for its derivatives contracts, with 116 million contracts traded, up 17.8 percent from the prior year It's 2010 volumes were driven largely by trading in the Hang Seng Index options, which posted 8.5 million contracts, up 56.6 percent from a year earlier . H-Shares index options totaled 2.9 million contracts in 2010, up 48.4 percent, while total stock options rose 28.8 percent to 61.1 million contracts.[3]

Products
A)

EQUITY INDEX PRODUCTS

a) b) c)
B) a) b) c)

Hang Seng Index Futures & Options. H-shares Index Futures & Options Mini-Hang Seng Index Futures & Options
INTEREST RATE & FIXED INCOME PRODUCTS HIBOR Futures Three-year Exchange Fund Note (EFN) Futures GOLD FUTURES

Contract

Trading Session

Trading Hours*

Trading Hours on Last Trading Day (Spot Month Contract)

Pre Market Opening Period

Hang Se ng I ndex Fu tures Mini-H ang Sen g In dex Futu re s H-sha re s Inde x Futures Mini H-sh ares I ndex Futu re s H-sha re s Inde x Op tio ns (Inclu din g Flexible In dex Options) Hang Se ng I ndex Op tion s (Inclu din g Flexible In dex Options) Mini-H ang Sen g In dex Options

Mo rn ing Se ssio n Af ternoo n Se ssio n

9 :15 a .m. - 12:0 0 no on 9 :15 a.m. - 12: 00 no on 8:45 a.m. - 9:1 5 a.m. 1 :30 p .m. - 4:15 p.m. 1 :0 0 p.m. - 4:15 p.m. (Effec tive 5 Ma rch 2 012) 1 :30 p.m. - 4:00 p.m. 1 :0 0 p.m. - 4:00 p.m. (Effe ctive 5 March 2 012) 1:00 p.m. - 1:3 0 p.m. 12:30 p.m. - 1 :0 0 p.m. (Effective 5 Marc h 2012 )

Mo rn ing Se ssio n Af ternoo n Se ssio n

9 :15 a .m. - 12:0 0 no on 9 :15 a.m. - 12: 00 no on Not applicab le 1:3 0 p.m. - 4: 15 p .m. 1:00 p.m. - 4 :1 5 p.m. (Effective 5 Marc h 2012) 1:3 0 p.m. - 4: 00 p .m. 1:00 p.m. - 4 :0 0 p.m. (Effective 5 Marc h 2012 ) Not applicab le

St ock Fu tures

Mo rn ing Se ssio n Af ternoo n Se ssio n

9: 30 a .m. - 12:0 0 no on 9 :30 a.m. - 12: 00 no on 1:3 0 p.m. - 4: 00 p .m. 1:00 p.m. - 4 :0 0 p.m. (Effective 5 Marc h 2012) 1:3 0 p.m. - 4: 00 p .m. 1:00 p.m. - 4 :0 0 p.m. (Effective 5 Marc h 2012 ) 8:30 a.m. - 11 :00 a.m. No t ap plicable 8:3 0 a.m . - 5: 00 p .m.

Not applicab le Not applicab le

HIBOR Futu re s Three-Year Excha nge Fund Note Futures Gold Futu re s

Mo rn ing Se ssio n Af ternoo n Se ssio n Whole d ay Se ssio n

8: 30 a .m. - 12:0 0 no on 1:3 0 p.m. - 5: 00 p .m. 8:3 0 a.m . - 5: 00 p .m .

Not applicab le Not applicab le Not applicab le

JOHANNESBURG STOCK EXCHANGE (INTERNATIONAL DERIVATIVE EXCHANGE)




1963 JSE becomes a member of the World Federation of Exchanges 2001 The JSE acquires SAFEX, the South African Futures Exchange, and becomes the leader in both equities and equity and agricultural derivatives trading in the South African market. 2002 All listed securities are successfully dematerialised and migrated to the STRATE electronic settlement environment, with rolling, contractual and guaranteed settlement for equities taking place five days after trade (T+5) 2004 The JSE launches the Socially Responsible Investment (SRI) Index, which measures compliance by companies with triple bottom line criteria around economic, environmental and social sustainability

Contd


The JSE Ltd (JSE) is licensed as an exchange under the Securities Services Act, 2004 and Africas premier exchange The JSE demutualises and incorporates in South Africa as JSE Limited, a public unlisted company on 1 July 2005. SAFEX Commodity Derivatives Market provides a platform for price discovery and efficient price risk management for the grains market in South and Southern Africa The physically settled commodities rely on warehouse receipts to facilitate the delivery process. The warehouse receipts are utilized by financial institutions who offer financing to clients who own the receipt

 Commodity
a) b) c)

derivative products

Gold Futures & Options Copper futures Platinum Futures & Options


a) b) c) d)

Currency Derivatives Market Products


Currency Futures Currency Options Maxi Currency Futures Contract RAIN (Rand Index)

PERIOD Agricultural Derivatives * Market pre-opening Market opening Market closing 08h50 to 08h59 09h00 12h00 12h00 to 12h45 (physical delivery month contracts) 12h00 to 14h30 (all other expiry month contracts) 12h45

TIME Foreign Referenced Commodities # 08h50 to 08h59 09h00 17h00

Administration

17h00 to 17h15

Mark-to-Market release Physical delivery auctioning process


Physical delivery invoicing

17h20

11h30 to 13h00 (random close in the last 60 seconds)


13h00 to 14h30

Periods
Market in download only period

Start time
05h00

End time
08h00 09h00 17h00 17h30 03h00

Administration period and download only 08h00

Automated trading period

09h00

Administration period

17h00

Market in download only period

17h30

AUSTRALIAN SECURITIES EXCHANGE




ASX was created by the merger of the Australian Stock Exchange and the Sydney Futures Exchange It functions as a market operator, clearing house and payments system facilitator ASX operates two trading, clearing and settlement platforms, one for equity and related equity derivative products and one for a suite of interest rate, equity index and commodity futures (and options on futures) products equity and related equity derivative products traded on an integrated trading platform between the hours of 10:00am and 4:00pm

Contd
 Interest

rate, equity index and commodity futures (and options on futures) products are traded on a globally distributed 24 hour platform has a pre-market session from 07:00am to 10:00am AEST and a normal trading session from 10:00am to 04:00pm AEST.

 ASX

A single-price auction is done between 4:10pm and 4:12pm to set the daily closing prices

PRODUCTS
     

Equity Options Index options Index Futures Interest Rate Futures & Options Grain Futures & Options Futures & Options
Energy And Environment Products Agricultural Products

EUREX


Eurex is one of the world's leading derivatives exchanges and is jointly operated by Deutsche Borse AG and SIX Swiss Exchange. market participants connected from 700 locations worldwide, trading volume at Eurex exceeds 15 billion contracts a year provides an automated and integrated joint Clearing House- Eurex Clearing AG

 

Mission
Driven by the spirit of performance, our mission is to be the power of innovation. We shape liquidity pools globally by setting benchmarks in market efficiency and integrity.




Vision
Eurex - passionately shaping the derivatives industry. We organize markets globally

PRODUCTS
   

Equity derivatives Credit derivatives Interest-rate derivatives Eurex Bonds and Eurex Repo

Eurex operates in three trading phases: pre-trading, trading and post-trading. The trading day at Eurex typically runs from 07:30 to 22:00 CET. It consists of three phases.

CLEARING PROCESS

ACCOUNTS
 There

are four general types of accounts: accounts (principal, agent, Market (principal, agent, Market

 Position

Maker)
 Premium accounts

Maker)
 Fee

Accounts (principal, agent, Market Maker) accounts

 Cash/securities

Currency derivative Products


Hang seng Asx
Interest rate products
1) 2) HIBOR futures 1) Three year exchange fund note (EFN) 2) futures 3) 4) 5) Asutralian stir futures and options Australian bonds futures and options Australian swaps futures Australian one session options NZ STIR futures and options

Jsx
1) 2) 3) 4) JSE bond futures j-Options Jibar Futures Index futures

eurex
1) 2) 3) 4)

India
10YGS 7( UD GOVT. SECURITIES ,TENNUT 91DTB

Euro-Schatz 1) Futures Euro-Bobl Futures Euro-Bund 2) Futures Euro-Buxl Futures

Equity derivative products


PARTICULAR UNDERLYING ASSET Top 100 shares TENNURE CONTRACT SIZE/VALUE 100 shares per contract CURRENCY Equity options For category 1> six rolling months For category 2->3 rolling months For category 1> six rolling months For category 2->3 rolling months 30 days 3 MONTH 9 MONTHS 6 MONTHS A$1

Index options

AXS approved indices (S&P/ AXS 200 index) South Africa volatility index JSE TOP 40 INDEX FUTURES EURO STOCK 50 INDEX SENSEX FUTURES (INDIAN BLUE CHIP INDEX OF BSE ) 5 INDICES

1000 shares

A$1

SAVI 40 EQUITY INDEX FUTURES EURO STOXX 50 INDEX FUTURES FSEN SENSEX FUTURE

IDX FUTURES One index point (r 10 )* index level EUR 10 USD 1

ZAR ZAR EURO USD

INDEX FUTURES

3 MONTHS

DEPEND ON LOT SIZE OF UNDER LYING ASSET

Rs

Mini index futures S&PCNX nifty

3 months

Lot size 20

Rs

INTREST RATE DERIVATIVES PRODUCTS


PARTICULAR One-Month HIBOR Futures ( Three-Month HIBOR Futures UNDERLYING ASSET One-Month Hong Kong Interbank Offered Rate Three-Month Hong Kong Interbank Offered Rate Three-year notional Exchange Fund Notes with a coupon of 6% TENNURE ONE MONTH CONTRACT SIZE HK$15,000,000 CURRENCY HK$

THREE MONTH

HK$5,000,000

HK$

Three-Year Exchange Fund Note (EFN) Futures Euro-Bobl Futures

THREE YEAR

HK$1,000,000

HK$

Debt instrument issued 4.5 to 5.5 years by the Federal Republic of Germany (coupon rate 6%) Short-term debt instrument issued by the Federal Republic of Germany notional long-term debt instrument notional long-term debt instrument issued by the Federal Republic of Germany 1.75 to 2.25 years

EUR 100,000

EUR

Euro-Schatz Futures

EUR 100,000

EUR

Euro-Bund Futures Euro-Buxl Futures

8.5 to 10.5 years 24 to 35 years

EUR 100,000 EUR 100,000

EUR EUR

GOLD FUTURES AND OPTIONS SAVI WHITE MAIZE

GOLD

1 MONTHS

1 CONTRACT=10 TROY OUNCE 1 CONTRACT=10 TROY OUNCE 20 TONNES

ZAR( SOUTH AFRICAN RANDS) ZAR( SOUTH AFRICAN RANDS) A$1

WHITE MAIZE

3 MONTH

WAW1U

WESTERN AUSTRALIAN WHEAT AUSTRALIAN SORGHUM GOLD NOT LESS THEN 995 FINENESS GOLD

1 YEAR

ASM1U

1 YEAR

20 TONNES

A$1

GOLD FUTURES (HKEx)

2 MONTHS

100 TROY ONCES

U$ DOLLARS

GOLD 100 GM FUTURES (WHTSMQBELI) WHEAT FUTURES

2 ,3,5 MONTHS

100 GRAM

Rs

WHEAT

6 MONTHS

10 MT

Rs

INDIA JSE Settlement T+2 period T+3

HKEX T+2

EUREX ASX T+3 T+3