Now with added derivatives – 21 March 2011
First Published Monday, 21st March 2011 03:05 pm from Fidessa : Steve Grob
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Spent an interesting week in Boca Raton at the title="FIA conference"
target="_blank">FIA's annual conference
which brings together the top executives from the global futures
industry to debate what lies ahead. The event had extra spice
exchange space has placed a high premium on those
venues that have - or that can create - a
derivatives capability. Because derivatives exchanges own the
products being traded, rather than simply providing a
marketplace, derivatives venues are better able to protect
margins and fight off competitors than their equities-only
is now widely regarded as a universal (and tradable) fear gauge
of overall financial market sentiment.
fact helps explain why derivatives are becoming such an important
part of the changing exchange landscape. And of course they are
attracting their own share of regulatory attention with plans
afoot to move the OTC market onto exchange and increase its
overall regulatory transparency. In Europe especially, the
target="_blank">Deutsche Börse and title="NYSE Euronext"
target="_blank">NYSE Euronext would combine both the
target="_blank">Eurex markets into a potent force.
Maybe the price for allowing the merger to go ahead will be that
some sort of fungibility (or other clearing compatibility) is
mandated by Brussels. If that were to happen then expect every
venue to launch its own variant of the major derivatives