SFE Secures Market Maker For AP/ELS Launch

The Sydney Futures Exchange (SFE) has developed a Market Making Scheme to coincide with the launch of its new equity index derivatives products - the SFE Dow Jones Asia Pacific Extra Liquid Series (AP/ELS) Australia futures and options contracts. Users of the AP/ELS Australia futures and options contracts, such as fund managers, arbitrageurs and private investors, are able to gain exposure to the Australian equity market quickly and efficiently. AP/ELS Australia futures and options contracts began trading at 9.50am today, Monday, 13 September. They are the first products to debut on SFE's advanced around the clock electronic trading platform, SYCOM® IV. The SFE Dow Jones AP/ELS Australia Options Market Maker Scheme commits Market Makers to provide continuous quotes in the 'at the money strike' for 20 lots (a value of A$2 million) with a bid-ask spread less than or equal to 10 points, and to respond to requests for quotes on a 'best efforts' basis. The Market Maker Scheme improves price discovery and generates increased liquidity by ensuring easy entry and exit to and from the market at a fair price. The first SFE Member to be approved as a Market Maker is Warburg Dillon Read Australia Limited. In so doing it becomes the first electronic Market Maker to trade on SYCOM® IV. SFE expects other Members to follow shortly.