Asian Spreads

Discussion in 'Index Futures' started by neilcharlton, Jul 20, 2005.

  1. I know a lot of guys trade the German interest spreads in the bund bobl schatz arena . Obviously these trades are done to death now and I’m looking to Asia for other similar types of trade. I’ve got access to the Sydney Exchange , Hong Kong and Singapore markets.
    I’m just building spread charts at the moment looking for correlated markets etc. Can anyone point me in the right direction for what I need to be looking at? Does anyone trade asian market spreads ?
    Does anyone trade the yield curve out in the interest rate futures as well .
  2. Asian spreads can be very enjoyable... :D
  3. care to elaborate ?
  4. Not in public :D
  5. Neil

    My reply was in jest and had sexual connotations... I apologize for giving you the impression that I actually trade Asian financial spreads...

  6. jrkob


    I'm in HK and the bank I work for is market making Hibor Futures for Cantor in Japan.

    The liquidity is extremely poor and bid/ask spread typically 10 or 15 pips. There are countless days with no trade at all. The trader was telling me that one of the reasons of the so low liquidity is because the Exchange fee to be paid to HKFE is expensive and banks play the yield curve with swaps, which are cheaper and obviously a lot more liquid. As an alternative for money market desks, they can use treasuries, the liquidity is reasonable.

    That's for short term interest rate futures.

    Regarding long term interest rate futures, to mo knowledge this doesn't exist in HK and here again bankers play long term rates with swaps.

    With interbank swaps the bid/ask spread is typically 1pip but of course these instruments are not accessible to retail.

    (no idea about Singapore and Australia).
  7. thanks for the reply - I'm looking at the charts now and you seem to be right , these things tend to trade by appointment only ! very low liquidity

    I might look at the index futures instead i 'd imagine they would be more liquid.

    ah the joys of looking for new trades ..
  8. jrkob


    What kind of "index futures" do you have in mind to play interest rate spreads ? (you said that's what you're trying to play right)
  9. i'll just give up on the interest rate spreads and look at other spreads. trade one index against another or something like that .
    I've just bought a book from amazon in different spreads so i'll take a look through it . I'll let you know if i come up with anything .
    #10     Jul 25, 2005