SFE Gains Approval To Place Trading Terminals In USA

The Sydney Futures Exchange (SFE) and its subsidiary, the New Zealand Futures and Options Exchange (NZFOE), have become the first exchanges in the Asia Pacific region to be permitted to place electronic trading terminals in the United States (US), following clearance from the Commodity Futures Trading Commission (CFTC). Leslie Hosking, SFE Chief Executive, said: "This is a regional first and opens up SFE to a global audience. We are the only stock or futures exchange in the Asia Pacific with trading terminals in the world's largest financial marketplace." SFE joins major European derivatives exchanges - the London International Financial Futures Exchange, the Swiss-German Eurex and France's MATIF - in being issued with a "no-action relief" letter allowing the placement of its SYCOM® IV electronic trading terminals in the US. The approval follows the lifting of the CFTC's moratorium on the placement of foreign futures exchange trading terminals in the US. Mr Hosking said: "SFE's strategy has been to build an international network for the global distribution of our futures and options products. We can now set-up trading hubs in the US, UK, New Zealand, Hong Kong and Japan. SFE's advanced SYCOM IV trading platform operates around the clock and is now set to operate around the world. "Through SFE Members and their Affiliates, the major investment houses, banks and other financial institutions of Chicago and New York can more readily access SFE's markets. These new customers add liquidity and improve the efficiency of our markets. The CFTC ruling makes it easier to invest and seek risk management instruments in Sydney, and considerably strengthens the case of Australia as a centre for global financial services." Introduced in 1989, SFE's SYCOM trading platform was the world's first after hours electronic trading system. The latest generation, SYCOM IV, effectively operates 24-hours-a-day and will replace open outcry when SFE closes its trading Floor and goes fully electronic from 1 October 1999. The CFTC decision allows SFE to enhance its recent alliance with Dow Jones Indexes, one of the world's premier providers of investable indices, and strengthen its position as the gateway for risk management instruments in the Asia Pacific. In July, SFE and Dow Jones Indexes announced the Asia Pacific Extra Liquid Series (AP/ELS) range of investable indices, and in September this year the first futures and options products based on AP/ELS will be launched at SFE. Subject to regulatory approval, US investors will be able to access AP/ELS products via SYCOM® screens located in the US and gain exposure through SFE to the Asia Pacific region. SFE is the largest financial futures and options exchange in the Asia Pacific region, with an annual turnover of 30 million contracts amounting to a nominal value of A$10.5 trillion.