London increases global share of RMB trade


The FT reports London is now the largest RMB trading centre outside of China and Hong Kong.  Overall global RMB trading volumes have grown over 100% this year due to increased deregulation in China and the goal of China’s policy makers to internationalize their currency.

Here is the link –!


Singapore now Asia’s top FX trading hub

A recent Bloomberg article showing Singapore has overtaken Tokyo as Asia’s largest foreign exchange trading center

From Paul Blank’s previous post on BIS Triennial FX Survey

BIS 2013 FX daily Volumes -location-Sing


Q&A with Patrick Myles: The evolution of single-dealer platforms

As part of our preparation for Trading Architecture Asia, WBR interviewed Caplin CTO Patrick Myles about how single-dealer platforms have evolved over the last few years. The interview is now up on the show’s main site – take a look!


Patrick participated in today’s panel discussion “Panel Discussion: Developing a trading architecture that can support multiple asset classes from the same front end.” He also recently published the well received “HTML5 in 2013 – Where Next?” Click here to request your copy.

Trading Architecture Asia gets under way in Hong Kong

Trading Architecture Asia got underway today at the Hong Kong Harbour Grand with Caplin sponsoring and exhibiting.

Join Caplin CTO Patrick Myles and other panelists for tomorrow’s 11am panel discussion “Developing a trading architecture that can support multiple asset classes from the same front end”. 

Caplin's Randy Hebert at Trading Architecture Asia

Caplin’s Randy Hebert at Trading Architecture Asia at the Hong Kong Harbour Grand

Caplin Systems lead sponsor at APTAS Conference

Caplin is proud to be the lead sponsor for the Asia Pacific Trading Architecture Summit held at the Regent Hotel in Singapore on June 27.

Patrick Myles, Caplin CTO, will present a white paper titled “HTML in 2013 – Where now?”

Caplin’s booth will feature the latest FX Motif, Bladerunner and Multi-Asset trading solution.

For a complimentary pass, please email me at

We look forward to seeing you there!

Caplin Systems booth at the FIX Protocol APAC Trading Summit in Hong Kong

Caplin Systems were one of the 30+ sponsors at the FIX Protocol trading summit in Hong Kong on May 23.

Continue reading

Visit Caplin at the FIX Protocol APAC Trading Summit in HK

Caplin will be a sponsor at the FIX Protocol Asia Pacific Trading Summit in Hong Kong on May 23, taking place at the JW Marriott hotel.

We invite conference participants to visit us at our booth and look forward to seeing you there!

SGX – a growing force in AsiaPac

The SGX reported very good news in their recent quarterly earnings announcement with the majority of the rise in revenue attributable to derivatives.

The interesting part of the derivatives growth is the fact that SGX lists many non-Singapore equity index futures contracts. In fact, the fastest growing contract in the quarterly report is the future on the Nikkei 225.

I read an interesting post back in January (here) that claimed the SGX Nifty contract had 68% of the total open interest of all available Nifty futures contracts. My thought at the time was “why would the majority of interest in a future on an Indian domestic equity index be offshore?” Time for more research!

And a key driver of that growth appears to be the comparative trading costs of Singapore vs the domestic market for the specific contract. As an example, this article shows that the cost of trading the Nifty on the SGX is less than half that on the NSE!

And then there is the regulatory impact

The Securities and Exchange Board of India (SEBI) banned participatory notes (p-note) in October 2007 (a p-note allows an investor to trade without registering with the SEBI) which led to a marked increase in trading in the SGX contract.

Even though the SEBI then lifted the p-note ban a year later, a significant share of trading stayed on the SGX. Additional uncertainty exists from an investor’s perspective w.r.t. the general anti-avoidance rules in India as well. Some commentators have suggested that the FX component is also of importance as the NSE Nifty contract is delivered in INR whereas the SGX contract is delivered in USD.

What do the investors want from the contract?

Exposure to the Indian equity market. To be able to trade efficiently – quickly & in a cost efficient way. To be able to enter & exit positions quickly. To know that the regulations are not going to change in a way that will add costs to the trade process.

For markets, once a significant amount of liquidity (measured by open interest & traded volume) moves to a venue then that liquidity becomes (1) self-generating & (2) sticky as long as the regulatory regime for that venue is stable. When the markets are electronic, that move can happen very quickly. Which is what happened when the Bund contract moved from LIFFE to the DTB (a good summary is here).

This dynamic should be understood by regulators when they view the global financial marketplace and is not limited to their efforts to avoid regulatory arbitrage. The individual market participants, whether buy-side, sell-side or execution venues will compete to provide the most efficient service possible. When that service is electronic, the competitive force is instantaneous and the successful participants will adjust to that force in the same time frame.

Dim Sum anyone? – The internationalization of China’s RMB

China has transformed itself into one the world’s largest economies, second only to the U.S.   The development of China’s economy over the past decade and increased global trade have been the main drivers to RMB globalization.  The Renminbi (RMB) is the official currency of China.  Although RMB traded in the spot onshore market and offshore in Hong Kong are the same currency, it has different exchange rates due to different supply and demand conditions.  Separate currency codes have emerged to represent onshore and offshore RMB.  CNY is used to represent onshore RMB within China while CNH is used to represent offshore trading in Hong Kong. Continue reading