Hit by penny stock scandal, SGX tries to diversify into derivatives

SGX is facing fierce competition in the derivatives market from exchanges in China and the West. Photo: Reuters

Singapore Exchange, set to report its weakest profit in more than a year after a penny stock scandal hammered trading volumes, is placing a big bet on an increasingly crowded derivatives market.

Thursday, 23 January, 2014, 9:30am

Banks in Asia profiting from derivative plays that put financial system at risk

Banks in Japan were caught offside when the stock market suddenly turned volatile last year. Photo: Reuters

Investment banks in Asia are taking advantage of a regulatory grey area to reap big returns from rising sales of equity derivatives, increasing the systematic risks to the financial system that regulators are trying to eradicate.

22 Nov 2013 - 2:24pm 1 comment

Index launch of exchanges' joint venture clears way for derivatives

Bryan Chan, director of China Exchanges Services, says many fund houses and financial firms are interested in the indices. Photo: May Tse

A joint venture of Hong Kong, Shanghai and Shenzhen stock exchanges will launch two new indices today and will this month allow the first batch of financial companies to use the indices for launching derivative products.

18 Mar 2013 - 2:17am

UK banks face big bills for mis-selling derivatives to small businesses

Big British banks have been accused of 'serious failings'.

The Financial Services Authority said it found serious failings in reviews of products sold by HSBC, Barclays, Royal Bank of Scotland and Lloyds Banking. The FSA looked at 173 sales to "non-sophisticated" customers and found that more than 90 per cent did not comply with the rules.

1 Feb 2013 - 5:23am

World’s oldest bank hit by scandal amid state rescue bid

Giuseppe Mussari, former chairman of the Monte dei Paschi di Siena Foundation, resigned from his post as head of Italy’s banking lobby ABI after it emerged he had personally signed off on a derivative contract that may cost the world’s oldest bank 220 million euro (US$293 million) in losses. Photo: Reuters

A derivatives scandal engulfing Italy’s Banca Monte dei Paschi di Siena (BMPS) has shaken the Italian finance sector and cast a shadow over the government’s efforts to save the world’s oldest bank.

24 Jan 2013 - 12:29pm

Major banks convicted in Milan fraud case

Deutsche Bank will appeal.

Deutsche Bank, JP Morgan Chase, UBS and Depfa Bank have been convicted by a judge in Milan for their role in overseeing fraud by their bankers in the sale of derivatives to the city.

Judge Oscar Magi yesterday ordered that about €90 million (HK$926 million) of assets be seized from the banks and that the firms pay sanctions of €1 million each. He also convicted nine bankers of fraud.

20 Dec 2012 - 3:19am

HKEx earnings crash21pc in tough quarter

Hong Kong Exchanges and Clearing (HKEx), the operator of the city's stock and futures markets, expects a challenging time ahead after reporting a worse-than-expected 21 per cent profit drop in the second quarter.

15 Aug 2012 - 11:15pm

Goodbaby shows mastery of risky derivatives is in its infancy

Goodbaby International, a maker of strollers and other children's products, issued a warning last week that its first-half profit would be hit by foreign-exchange losses associated with currency derivatives.

The company noted that in last year's first half it had booked a gain on its bets on how the yuan would move against the US dollar.

20 Jul 2012 - 12:00am

Failure is not an option

'I locked in a profit of US$1,100 in one day during the training! Thank you Mirriam - the True Guru of Financial Freedom!' - Shamsheer Ahmed, Singapore

16 Jul 2012 - 12:00am

New licences to curb OTC risks

The Securities and Futures Commission (SFC) will introduce two new licences next year to regulate investment banks conducting over-the-counter (OTC) trading and clearing as part of a global effort to curb risk and bolster transparency.

The reform will require a change in the law submitted to Legislative Council by the end of this year.

12 Jul 2012 - 12:00am

Information is a valuable commodity for sales traders

Barclays traders routinely co-ordinated with counterparts from at least four other banks in an attempt to move interest rate benchmarks, according to documents released on Wednesday by US and British market watchdogs.

Bloomberg, SCMP, June 29

1 Jul 2012 - 12:00am

Brokers follow HKEx's lead into world of commodities

The city's stockbrokers are following Hong Kong Exchanges and Clearing into the commodities business.

But while HKEx paid a sky-high price for the London Metal Exchange, local brokers have a more modest budget.

26 Jun 2012 - 12:00am

HKEx in deal to buy LME for HK$16.6b

Hong Kong Exchanges and Clearing has agreed to pay GBP1.39 billion (HK$16.67 billion) for the London Metal Exchange, the world's largest metals marketplace, marking the local bourse's first overseas acquisition.

The price represents 180 times LME's profit last year of GBP7.68 million, which is too high, according to Hong Kong brokers, who are shareholders in local exchange.

16 Jun 2012 - 12:00am

Not all minibond buyers were innocent

Local investors like to boast how clever they are - unless they bought Lehman Brothers minibonds and other related derivative products. These Lehman investors have since gone out of the way to profess being financial illiterates, ignoramuses and idiots. And playing the fool has mostly given them what they want.

7 Jun 2012 - 12:00am

Queries raised over bid for LME

Hong Kong Exchanges and Clearing wants to buy the London Metal Exchange in order to diversify its business, but analysts question how the acquisition will really help the city develop its own commodities trading.

5 Jun 2012 - 12:00am