This year marked a significant milestone for Orient Futures Singapore as we hosted our inaugural Orient Futures Derivatives Summit at Guoco Midtown Network Hub. The event brought together a diverse array of participants, including market players, and industry experts, all eager to exchange their knowledge and insights. This year’s summit placed a strong emphasis on Emerging Markets, with a particular focus on the dynamic economies of China, India, and Brazil. During the engaging panel discussions, experts from these countries provided valuable perspectives on the anticipated developments and future trajectory of the derivatives market within their respective regions.
A Glimpse into the Future: Macroeconomic Outlook for 2025
The First Inaugural Orient Futures Derivatives Summit began with a comprehensive analysis of the macroeconomic outlook for 2025, presented by Xu Ying, Chief Analyst for Orient Futures.
Xu Ying provided an insightful and comprehensive analysis of the economic fundamentals of both the United States and China, delving deeply into the intricacies of the Federal Reserve’s monetary and fiscal policy outlook. The presentation meticulously highlighted the expectations and potential impacts of various policies implemented under the Trump Administration, emphasizing the critical need for businesses and investors to adapt to these changes in order to maintain economic resilience. Xu Ying elaborated on how these policies could influence interest rates, inflation, and overall economic growth, urging stakeholders to remain vigilant and responsive to shifts in the economic environment.
Furthermore, Xu Ying offered a detailed examination of China’s fiscal and monetary policy outlook, underscoring the importance of making strategic adjustments to effectively navigate the evolving economic landscape. This includes understanding the implications of China’s policy decisions on global trade, investment flows, and currency stability. Xu Ying stressed the necessity for China to implement policies that would not only stimulate domestic growth but also ensure long-term stability in the post-pandemic era. By focusing on innovation, infrastructure development, and sustainable practices, China aims to bolster its economic position while contributing to global economic recovery. The analysis provided a roadmap for stakeholders to align their strategies with these macroeconomic trends, ensuring they are well-positioned to capitalize on emerging opportunities and mitigate potential risks.
Navigating China's Regulatory Landscape
The China panel delved into the country’s fast-changing regulatory environment, which is continually reshaping the financial landscape. Featuring Wu Xiao Chen from Dalian Commodities Exchange, Ge Yin from Han Kun Law Offices, and Richard Shi from Legend Arb Financial Group, the discussion provided a comprehensive overview of recent regulatory developments and their implications for the derivatives market.
Panelists engaged in an in-depth discussion about the Chinese government’s multifaceted efforts to balance the rapid growth of the market with stringent regulatory oversight, aiming to ensure both stability and transparency within the financial sector. They highlighted how the government is implementing a series of regulatory measures designed to foster a secure and transparent trading environment, which is crucial for maintaining investor confidence and market integrity.
This evolving regulatory framework, while presenting certain challenges such as compliance complexities and increased scrutiny, also opens a plethora of opportunities for market participants who are willing to navigate these changes with agility and strategic foresight. The panel emphasized the critical importance of staying well-informed about the latest regulatory updates and being adaptable to the shifting landscape, as these qualities are essential for thriving in China’s dynamic and ever-evolving financial ecosystem. By remaining proactive and responsive to regulatory changes, market participants can better position themselves to capitalize on new opportunities and mitigate potential risks in this rapidly transforming market.
Unlocking Opportunities in the Indian Derivatives Market
The India panel provided an in-depth exploration of the burgeoning India derivatives market, focusing on both onshore and offshore access. Prominent market participants, including Rajashree Nagaraja from Kotak Mahindra, Jeslyn Wong from SGX, and Meet Pandya from NSE International Exchange, shared their insights on navigating India’s complex financial landscape.
The discussion began with an examination of GIFT Nifty as a gateway to India’s financial markets. NSE International Exchange representative, Meet Pandya, elaborated on how the introduction of GIFT Nifty has significantly improved access to India’s capital markets for global participants, highlighting the unique advantages GIFT City offers for trading Nifty contracts.
The panel then delved into the various routes and timelines for accessing Indian markets, with Rajashree (Kotak Mahindra) providing a roadmap and recommending fund structures that maximize access while ensuring cost and tax efficiency. They also discussed the benefits and challenges of onshore access for foreign participants, emphasizing the strategic solutions available to overcome regulatory compliance and market infrastructure hurdles.
The panel also addressed the regulatory environments, with Rajashree elaborating on the key considerations for trading Indian derivatives both onshore and offshore. NSE International Exchange and SGX shared insights on ensuring compliance while maintaining a seamless trading experience.
In terms of hedging and risk management, Kotak shared how market participants can best utilize onshore and offshore platforms to hedge risks related to Indian market exposure.
Finally, the discussion touched on enhancing liquidity and market access, with Meet outlining steps being taken to boost liquidity in their derivatives markets. Rajashree concluded by discussing how their onshore and offshore offerings cater to different investor profiles, and the support Kotak provides to foreign investors seeking to access India.
Brazil's Booming Derivatives Sector
The Brazilian panel highlighted the exciting opportunities within the country’s derivatives market, featuring insights from the Head of Equities, Renato Munhoz, the Head of Co-location, Eduardo Kashiwakura, and Equity Derivatives Analyst, Pietro Amado, from B3 exchange. Eduardo delved into B3’s advanced co-location infrastructure, emphasizing the technical features that make it highly attractive to investors. He outlined ongoing co-location expansion projects designed to meet the rising demand from proprietary trading firms, while also underscoring the increasing interest from non-resident investors in B3’s offerings.
The discussion further explored Brazil’s robust market infrastructure and diverse product offerings, with Marcus Goi, CEO of Orient Futures Singapore, introducing the B3 products team to address the opportunities and challenges in the Brazilian market. Marcus also highlighted B3’s pivotal role as a comprehensive platform for a wide array of asset classes, boasting significant volumes across various product types.
Looking ahead, the panelists identified future challenges, including attracting new retail investors and increasing market participation and adoption by prop firms. They stressed the necessity of continually enhancing the appeal of market maker programs to engage not only high-frequency trading firms but also those operating at mid to low frequencies.
The session concluded with a discussion on volumes and trends, emphasizing volume strategies and investor types, particularly focusing on high-frequency trading (HFT) and retail investors. The panelists discussed incentive and liquidity programs, such as HFT and market maker initiatives, drawing parallels with trends observed in other markets and how these could be integrated into B3. Emerging trends and innovations shaping B3 markets were also highlighted, underscoring the dynamic nature of Brazil’s derivatives sector.
Key Takeaways and Future Directions
The Inaugural Orient Futures Derivatives Summit provided a platform for industry leaders to share valuable insights and strategies for navigating the complex global derivatives market. Key takeaways included the importance of staying abreast of regulatory changes, leveraging technological advancements, and fostering international collaborations to drive market growth.
Looking ahead, the derivatives market is expected to witness significant transformations, driven by macroeconomic trends and innovative financial solutions. Market participants must remain agile and forward-thinking to capitalize on emerging opportunities and address evolving challenges. The summit underscored the need for continuous learning and strategic planning to thrive in the dynamic financial landscape.
Start Trading with Orient Futures Singapore
Being an Overseas Intermediary of Shanghai International Energy Exchange (INE), Dalian Commodity Exchange (DCE), and Zhengzhou Commodity Exchange (ZCE), when foreign clients participate in internationalised futures contracts in these Chinese markets with us, they have direct access to trading, clearing, and settlement. Our parent company, Shanghai Orient Futures, is the largest broker in terms of aggregated volume across the five regulated exchanges in China.
Orient Futures Singapore also currently holds memberships at the Singapore Exchange (SGX), Asia Pacific Exchange (APEX), and ICE Futures Singapore (ICE SG). Starting August 2023, corporate clients can also gain access to the B3 Exchange through us, opening additional trading avenues.
Expect streamlined processes and an easy-to-use interface designed for minimal latency, accompanied by our team’s round-the-clock availability on trading days to provide assistance for all your trading needs.
