HKEx Sees Methodic Growth in its Derivatives, Futures Business in January

Hong Kong Exchanges and Clearing Limited (HKEx) has disclosed its monthly market figures ending January 2016, which saw a strong performance across its securities and derivatives business in the first month of the New Year, according to a HKEx statement.

The financial metrics report is the first glimpse into the scope of the Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term’s operations since last year’s introduced changes to its management structure and regime – during late 2015, HKEx rolled out four new divisions that helped streamline its overall business focus.

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For the month ending January 2016 however, HKEx reported an average daily turnover of $82.2 billion across its securities business, which was good for a 33.4% MoM growth from $61.7 billion back in December 2015. This strength was somewhat pared by lackluster numbers extending one year prior, having fallen -15.6% YoY from $97.4 billion in January 2015.

HKEx also witnessed a shifting breakdown of its turnover across four separate types of securities. This includes a 60.8% share of Equities Equities Equities can be characterized as stocks or shares in a company that investors can buy or sell. When you buy a stock, you are in essence buying an equity, becoming a partial owner of shares in a specific company or fund.However, equities do not pay a fixed interest rate, and as such are not considered guaranteed income. As such, equity markets are often associated with risk.When a company issues bonds, it’s taking loans from buyers. When a company offers shares, on the other hand, it’s selling pa Equities can be characterized as stocks or shares in a company that investors can buy or sell. When you buy a stock, you are in essence buying an equity, becoming a partial owner of shares in a specific company or fund.However, equities do not pay a fixed interest rate, and as such are not considered guaranteed income. As such, equity markets are often associated with risk.When a company issues bonds, it’s taking loans from buyers. When a company offers shares, on the other hand, it’s selling pa Read this Term turnover, 21.3% share of derivatives warrants turnover, 9.8% of CBBCs turnover, and an 8.1% share of Unit Trusts turnover, including exchange-traded-funds (ETFs).

Moving to its derivatives business, HKEx unveiled an average daily turnover of futures and options during January 2016 at 941,648 contracts, yielding an increase of 54.2% MoM from a combined 610,815 contracts in December 2015. Even when measured against last year’s figure, HKEx’s January 2016 performance still constitutes a 22.0% YoY boost over its January 2015 counterpart (770,683 contracts).

Another area of note was HKEx’s average daily turnover of RMB Currency Futures during January 2016, which came in at 3,264 contracts, exploding 57.6% MoM from 2,071 contracts in December 2015. This figure was even more pronounced from last year, justifying a 256.0% YoY growth from just 916 contracts per day in January 2015.