The BRICS Securities and Derivatives Markets - Hong Kong ...

More documents

Recommendations

Info

MICEX Index weekly closing (points)Futures trading volume (mil contracts)The BRICS Securities and Derivatives MarketsThe first cross-listed product of Moscow Exchange for the BRICS Alliance is futures on theMICEX Index, the benchmark index of the Russian stock market. Trading in MICEX Indexfutures in the local market was relatively inactive in the first two years after launch in 2007and the monthly volume even dropped to zero in November 2008. In early 2009, MICEXintroduced a number of measures to boost the liquidity in its equity derivatives market,including reduction of the minimum price fluctuation, commission fee and margin depositrates for this product. Subsequently, the trading volume picked up rapidly and reached thepeak of 46,990 contracts on an average daily basis in October 2010. (See Figure 3-4.) Theaverage daily volume for the year 2011 was 10,805 contracts, compared to 1,523,571contracts for the most active RTS Index futures.Figure 3-4. MICEX Index weekly closing and monthly trading volume of MICEX IndexMICEX Index weekly closing and monthly trading volume of MICEX Index futuresfutures on Moscow Exchange (2002 – 2011)2,5002,000MICEX Index futures monthly volumeMICEX Index weekly closing(2002 - 2011)1943 (2008/05/18)2.01.61,5001.21,0001402(2011/12/30)0.8500256 (2002/01/06)0.4513 (2008/10/26)02002/01 2003/01 2004/01 2005/01 2006/01 2007/01 2008/01 2009/01 2010/01 2011/01Year/monthNote: MICEX Note: Index MICEX futures Index futures were launched were launched in in June 2007Sources: Reuters and Futures Industry Association (FIA)Sources: Reuters and FIA0.03.5 Other international cooperation initiativesBefore merging with RTS Group, MICEX Group signed memoranda of cooperation with anumber of overseas counterparts, including Chicago Mercantile Exchange (CME), DeutscheBörse (DB), HKEx, the London Stock Exchange (LSE), NASDAQ Stock Market, the NewYork Stock Exchange (NYSE), the SHSE, the SZSE and Tokyo Stock Exchange (TSE). Inaddition, NASDAQ OMX is a partner of both MICEX Group and RTS Group in the area ofmarket data services.Moscow Exchange also has several joint ventures in Ukraine and Kazakhstan. In 2008, RTSGroup cooperated with a group of brokers in Ukraine to establish the Ukrainian Exchange,and provided the new exchange with equity and derivatives trading systems. Currently,Moscow Exchange has a 43% stake in the Ukrainian Exchange. Moscow Exchange wasalso the majority shareholder in the PFTS Stock Exchange in Ukraine and the EvraziyskaiaTrading System (ETS) Commodity Exchange in Kazakhstan as at the end of 2011.- 12 - Research & Corporate Development, HKEx31 December 2012
The BRICS Securities and Derivatives Markets4. INDIAThere are over 20 stock exchanges and over 20 commodity exchanges in India. Among thestock exchanges, the National Stock Exchange of India (NSE) and BSE Limited (BSE) arethe most prominent. These two exchanges offer trading in stocks, ETFs, bonds and financialderivatives. The commodity exchanges offer trading in commodity futures while trading incommodity options is still prohibited. Among them, Multi Commodity Exchange of India(MCX), which became India’s first exchange to get listed on the BSE in March 2012, has thelion’s share by trading volume.The principal regulator in the Indian securities market (in legislative terms, “securities”includes financial derivatives) is the Securities Board of India (SEBI). It regulates stockexchanges, market intermediaries and other service providers and their activities, andpromotes investor education and training of market intermediaries. The market for domesticgovernment securities (G-secs), which are traded both OTC and on exchange, is developedand managed by the Reserve Bank of India (RBI), the nation’s central bank. It also issuesG-secs on behalf of the Indian Government.At the policy level, the Ministry of Finance (MOF) is responsible for formulating polices andadministering the relevant Acts for the regulation and development of the securities market;and the Ministry of Corporate Affairs (MCA) is primarily responsible for administering theActs governing the corporate sector.4.1 Key exchangesThe NSE and the BSE are the most prominent stock exchanges in India — almost all cashmarket trading (equities and other securities, excluding financial derivatives) is done on thetwo exchanges, with the NSE having the lion’s share (81% in 2011/12 6 ). These twoexchanges are also the only exchanges in India offering equity derivatives, in which tradingvolume is also dominated by the NSE (97%). Currently, only the NSE, MCX StockExchange (MCX-SX) and the United Stock Exchange of India (USE) offer currencyderivatives, in which the NSE has again the largest share by trading volume (47% in 2011/12),followed by MCX-SX (37%). (See Figure 4-1.)The NSE offers the trading of shares, warrants, mutual funds (including ETFs), fixed incomesecurities (include G-sec), futures and options contracts on equities, equity indices andcurrencies, and interest rate futures. The National Securities Clearing Corporation Limited(NSCCL), the NSE’s wholly-owned subsidiary, clears and settles the transactions of equityand financial derivatives.The BSE’s product offering is similar to the NSE’s except that the BSE does not offer tradingof interest rate futures and has suspended the trading of currency futures since April 2010.BOI Shareholding Limited (BOISL, 49% owned by the BSE) is the BSE’s clearing house forfunds and securities while Indian Clearing Corporation Limited (ICCL), the BSE’ssubsidiary, provides clearing and settlement services for the BSE’s mutual funds andcorporate debt segments.6The financial year in India is from April to March the following year (the same convention is used for thisIndia section of the article).- 13 - Research & Corporate Development, HKEx31 December 2012
Page 1 and 2: THE BRICS SECURITIES AND DERIVATIVE
Page 3 and 4: Contracts (million)CME GroupKorea E
Page 5 and 6: Market capitalisation / share tradi
Page 7 and 8: IBOVESPA daily closing (points)Futu
Page 9 and 10: The BRICS Securities and Derivative
Page 11: The BRICS Securities and Derivative
Page 18 and 19: SENSEX Index daily closing (points)
Page 22 and 23: Funds raised (FR) by NLCsNo. of new
Page 25 and 26: Equity market capitalisation / Equt
Page 29 and 30: Daily index closing (points)Futures

The BRICS Securities and Derivatives Markets - Hong Kong ...

Create successful ePaper yourself

Delete template?

Save as template?