IB and any other broker going to list first China A share stock index future?

Discussion in 'Retail Brokers' started by joesan, Jul 3, 2006.

  1. joesan

    joesan

    This index futures will be supplied by Singapore Exchange this September ,wondering if any brokers will supply it ?


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    SGX PARTNERS FTSE XINHUA INDEX TO LIST FIRST CHINA "A" SHARE FUTURES CONTRACT

    JOINT NEWS RELEASE

    Singapore/London, 25 January 2006 – Singapore Exchange (SGX) and FTSE/ Xinhua Index (FXI) today announced an agreement to list the first internationally available futures contract based on the FTSE/Xinhua China A50 index, on SGX.

    The contract, to be known as the FTSE/Xinhua China A50 Index Futures contract, is expected to be launched by September 2006. The A50 is one of the tradable indices in the FTSE/Xinhua Index Series, constituting the top 50 China "A" share stocks by market capitalisation, listed on the Shanghai and Shenzhen exchanges.

    Mr Linus Koh, Executive Vice President and Head of Products & Services Group at SGX said, "We are delighted to work with FXI to create investment opportunities in the growing China "A" share market. The SGX FTSE/Xinhua China A50 Index Futures contract will allow our market participants convenient access and the ability to manage their exposure to the domestic China "A" share market. This is another milestone for SGX and supports our efforts in developing as an investment gateway to Asia and strengthens our positioning as a premier risk management centre."

    The FTSE/Xinhua Index Series has fast become recognised as the leading benchmark and the first complete set of indices for the China market. The indices follow an award winning methodology and are well suited for the development of investment products. This agreement marks another step in growing market confidence in FXI and its index series.

    Mr Zhu Shan, Managing Director, FXI said, "SGX's decision to use the FXI A50 index as the basis for international derivatives products proves again that FXI indices are preferred by the investment community. The FXI A50 futures contract will join a growing list of financial products linked to FXI indices available worldwide for domestic and international investors."
    - End -
    Issue date: 25 January 2006
     
  2. ids

    ids Interactive Brokers

    We will definitely list this one.
     
  3. def

    def Interactive Brokers

    FYI, similar futures (not exactly A shares) based on China stocks already are listed and trade in HK. The symbols are HHI.HK (H-share index - chinese stocks listed in HK) and FXC which is the FTSE-Xinhua index. FXC also has a number of ETF's availabe in the US and Europe.
     
  4. joesan

    joesan

    Glad to know IB is going to offer this new index future in SGX.

    HHI.HK is calcultaed on H-share stocks(based on China-related stocks listed at HKFE) ,I trade this one sometimes together with HSI. And FXC has no liquidity, less than 100 contracts traded in most days. But this new one to be listed in SGX is A-share index which is based on stocks listed in mainland china. This may be the first A-share index futures. Meanwhiles, China plans to start its first own stock index futures contract ( A-share) later this year. A new financial futures' exchage will be established this month in Shanghai. And from August 1, Chinese investors will be able to short stocks as well as buy stocks with margin. Previously, we can only buy stocks with 100% cash requirement and can not short a stock. IT seems a huge market is beginning to emerge in China.
     
  5. joesan

    joesan

    Has IB decide the margin/commision for this product ? It will start to be traded from September 5.
     
  6. def

    def Interactive Brokers

    Margin: to be determined by the exchange. Same policies for day and overnight margin as other SGX products.

    As it's USD based, it will be on the USD price scale for unbundled. We haven't determined our bundled fee yet but we'll be competitive.
     
  7. joesan

    joesan



    Thanks for the information.


    So far as unbundled rate is concerned, what is your rate for KRW products ? It is not specified in the IB website
     
  8. def

    def Interactive Brokers

    We haven't offered unbundled for Korea at this time. If you are going to trade very high volumes there, perhaps you can contact me separately for now.
     
  9. joesan

    joesan

    Thanks,Def. It's ok for me now as currently I am monitoring but not trading K200.
     
  10. joesan

    joesan

    SGX (Singapore Exchange) now have a trouble. A market data company under Shanghai Stock Security last week suited against Xinghua FTSE company for its unappropriate use of the market data of China A-share stock market. The law case is an effort to prevent SGX from listing A50 stock index futures in the Singapore market. The Chinese authority is concerned about the negative influence of the SGX Chinese A-share stock index will have on China's own A-share stock index, which will be launched early next year. China's authority has decided to learn from Hong Kong's experience, to prevent SGX from using the stock market data, thus indirectly prohibit SGX from launch its overseas A-share stock index.

    If China wins this lawsuit, even if SGX is able to lauch the A50 stock index on September 5, it will not have lasting success.
     
    #10     Aug 27, 2006