FFastFill in partnership with Newedge announced November 22 it has established connectivity via its Software as a Service platform to the Chinese futures markets.
Newedge, a global leader in multi-asset clearing and brokerage, using FFastfill software has created the first platform to provide qualified Newedge buy-side clients with access to global futures and Chinese futures from a single trading screen. The Chinese exchanges comprise Shanghai Futures Exchange (SHFE), Dalian Commodities Exchange (DCE), Zhengzhou Commodities Exchange (CZCE), and China Financial Futures Exchange (CFFEx).
Dalian and Zhengzhou are primarily agricultural product exchanges. Dalian is a substantial exchange in soybean and related product markets whilst Zhengzhou trades wheat, sugar, cotton and rapeseed oil. Agricultural futures market activity in China is expected to growsubstantially. CFFEx is the only financial futures exchange in China, and it trades the country’s first financial future, the CSI 300.
The Shanghai Futures Exchange is one of the three base metals price-setting centres in the world, along with the LME and COMEX. Consequently, FFastFill has expanded its spreading functionality for users requiring hedging instruments in China as well as other major worldwide centers for price discovery. This enables traders to quickly and effectively automate their spread trading strategies and reduce ‘legging risk’. FFastFill’s Spread Trader is based on Progress Apama’s high performance, multi-asset class Complex Event Processing (CEP) platform and is fully hosted by FFastFill in close proximity to all the major futures exchange gateways.
Mike Frawley, Newedge Global Head of Metals says: “Clients will be able to trade Chinese and other global contracts as a single order, spreading between any two contracts offered from around 45 exchanges on this platform. This is the first platform to offer access in English to Chinese exchange contracts. Further, the platform offers monthly spreading functionality within Chinese exchange traded contracts”. He adds: “Our approach is to allow companies to take a holistic view of their global needs to trade different parts of the world simultaneously while respecting local regulations which, in the case of China, has detailed rules regarding the inflow and outflow of foreign and domestic business, respectively.”
Hamish Purdey, CEO, FFastFill, commented: “Cross-exchange trading between the LME, COMEX and Shanghai is extremely volatile and illiquid. Working closely with the metal trading community, we have expanded our spreading functionality to cater for the individual characteristics of these exchanges and their trading rules. Additionally, establishing connectivity to China’s agricultural futures market is an important step for FFastFill and our clients, creating access to a market of enormous potential. ”
“This innovative service drives Newedge’s metals offering from strength to strength. This is yet another example of Newedge responding with innovative solutions to client needs. We are excited to be the first to provide this service to our clients,” adds Mike Frawley.
Laurent Cunin, Newedge Asia Pacific Regional Head says, “This initiative shows we are very committed to China and the development of our franchise there. The Chinese futures markets have a potential to grow further, and Newedge is well positioned to bring more institutional participants into this arena.”
FFastFill’s advanced solutions for the electronic global trading community use the latest automated trade flow processes through the full trade cycle of front, middle, back and risk management applications. These are delivered through the highly efficient and cost-effective medium of Software as a Service (SaaS).
FFastFill is the leading provider of application services to the global derivatives community using the latest developments in technology to automate trade flow processes across a firm’s front, middle and back offices. FFastFill’s solutions encompass electronic order routing, clearing, risk management and back office as part of an integrated, yet modular system architecture. FFastFill is traded on London’s AIM (AIM:FFA) www.ffastfill.com
About Newedge Group
Newedge, refers to Newedge Group SA and all its worldwide branches and subsidiaries, including Citic Newedge Futures Co., Ltd in China. Newedge is a 50/50 joint venture between Société Générale and Crédit Agricole CIB, andis a major force in global multi-asset brokerage business, with a world-leading position in the execution and clearing of listed derivative products. With a presence in more than 20 locations and 17 countries, Newedge offers a full range of clearing and execution services covering options and futures contracts for financial products and commodities, as well as for money market instruments, bonds, FX, equities, and commodities on OTC markets. Newedge provides a range of value added services including prime brokerage, asset financing, an electronic platform for trading and order routing, cross margining, and the centralized reporting of client portfolios. Newedge, which primarily serves institutional clients, provides access to more than 85 exchanges. Newedge’s 2,800+ employees form a close-knit, multinational team that can innovatively respond to its clients in fast-moving markets.