FIA (Asia Derivative Conference) is an annual event consisting of a combination of networking sessions, talks, and discussions on the latest happenings in the financial market.
Since the outbreak of Covid-19, the event has been held online, however, from 29 November to 1 December 2022, the long-anticipated event was held in person at the St. Regis Singapore.
As a previous participant in 2019, 东证期货新加坡 was elated to reemerge from the online space into the scene. Above all, the firm continues to learn from our fellow counterparts and past experiences to provide better services in futures, forex, and derivatives services.
Topics of discussion for FIA 2022
Among the topics of discussion, Mr. Marcus Goi, our Chief Executive Officer is an honored guest that is invited to the panel discussion on “The Derivatives Landscape in China”.
He has managed to share the benefits and strengths of easing market access from China through regulations such as the Futures and Derivatives Law or the Qualified Foreign institutional investor / QFII scheme.
Mr. Marcus Goi said: “With the implementation of FDL, it has potential. However, along with the regulations, if an individual wants to trade onshore, it can be through an offshore outbound presence. In this case, Orient Futures Singapore as a Chinese-backed subsidiary might be the way.”
When considering investing in China through the qfi program, Marcus also explains that: “it is important to consider that for China to remain profitable in the derivatives and trade industry, it will have to open up to the world. This strategic direction will benefit the clients and the larger community. Eventually, clients will also be able to hedge their exposure overseas and perform hedging risks or other forms of trade.”
Regarding the system and feasibility of trade, Marcus continues: “geopolitics, differences of policies, rising interest by FED all create volatility. While that is good for brokerage firms, it is important to manage client risk and margin calls. How brokerages manage risk and liquidity is also crucial to safeguard the role of clearing members. And this boils down to calibrating the balance between the thin margins, risk, and liquidity.”
To elaborate on the risk management system implied from Marcus’s speech, 东证期货新加坡 would survey the information of relevant customers, pay close attention to customer trading behaviour, and prevent market risks or potential violations of laws and regulations in advance. This inbuilt process is jointly implemented by the client, the brokerage, and the exchange, contributing to a well-calibrated system. Through the tightly managed system, it is conducive to reducing market volatility and stabilizing product prices.
Apart from the derivatives landscape in China, other themes covered in the event include the impact of regulatory developments on the ETD industry, the next chapter in market technology, and various other topics which will be covered in the subsequent articles.
Futures and Derivatives Law:
The Law draws on international best practices while considering the main systems of some global derivatives markets. Through legislation, this law fills the gaps in some existing trading rules, and it will allow the future industry to be more standardized.
QFII Scheme:
On September 2022, China opened its financial and commodity markets further to foreign investors, in this scheme, 27 QFI tradable futures, and 18 QFI tradable options are made available. This scheme is also known to some as the qfii and rqfii scheme.
Parties involved in FIA 2022
The FIA community consists of primary members that are clearing members who hold customer funds or have contributed substantially to the safety and soundness of the market infrastructure.
At the event, many stakeholders were present including:
Exchange: SGX Group, CME Group, B3, Bursa Malaysia Derivatives
Platform Providers: CQG, TT, Stellar Trading Systems.
Brokerage: Orient Futures Singapore, NANHUA Singapore Pte Ltd, Share India Securities Limited
FIA’s Priorities and Key Issues
FIA provides support to the industry through advocacy and the development of best practices for the industry. Among the recent news, on Oct 2022, FIA also submitted several suggestions to the China Securities Regulatory Commission (CSRC) to better integrate the Futures and Derivatives Law. Some suggestions include the clarification of the “separate tier” futures settlement model set out in the Measures and a statutory definition of “program trading” to provide clarity to participants.
In a different aspect of the derivatives industry, energy is also discussed, Planta “said that while energy derivatives markets play an essential role for price discovery, measures to contain excessive volatility could help in improving the overall functioning of the markets”.
For more information, head to the Fin market Voice segment from FIA located here.
东证期货国际（新加坡）简介
我们是 上海东证期货有限公司的直属全资子公司， 也是东方证券股份有限公司的间接控股子公司。
作为持有新加坡金融管理局（MAS）颁发的《资本市场服务许可证》的机构， 我们也是新交所、 亚太交易所和, 洲际（新加坡）交易所的会员。
我司提供 premium customer service at an affordable cost to all our clients. Our team will 场内衍生品、 及杠杆外汇等多类产品。
