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JANUS Risk Manager (JRM), the multi-market real-time risk management solution provided by the Technancial Company (TTC), has established access to Asia Pacific Exchange (APEX) in Singapore. TTC provides comprehensive risk services for KGI Securities, one of APEX’s leading clearing members, in respect of the steadily growing trading volume in the new marketplace. TTC’s product, JRM supports APEX portfolio margin, as well as many other essential risk control checks in real-time.
Trading activity on APEX has been growing consistently since the new market's launch in May of 2018. The US Dollar-denominated APEX RBD Palm Olein Futures Contract is clearly seen as complementary and an upgrade to other established Palm Oil futures contracts around the globe. According to statistics from the APEX official website, daily trading volume for the APEX RBD Palm Olein Futures Contract is around 40,000 lots with Open Interest of more than 7,000 lots. The recently-listed APEX USD/CNH Futures Contract also reflects APEX’s capacity to continuously provide outstanding products to a wide spectrum of participants. The APEX USD/CNH Futures Contract started trading on 19th October 2018 with current daily trading volume at around 30,000 lots, which is a remarkable success for a new marketplace.
Using TTC’s JRM system, users are able to monitor activity across multiple venues, using various real-time checks, including portfolio margin calculations, giving a clear overview of risk in a market that can be extremely volatile. The high volatility can cause rapid margin changes and margin calls that need to be met in order to maintain a stable clearing system. The fact that the APEX RBD Palm Olein Futures Contract is traded in USD (which is the internationally traded currency for the physical product) makes the changes in basis-difference in hedging and arbitrage transactions clear and intuitive, avoiding the risks associated with multi- currency conversion.
Just recently, APEX has successfully delivered the physical palm olein product for two industry giants, which is a significant milestone, completing the full trading, clearing and delivery cycle. Mr. Eason Zhang, APEX’s Deputy CEO, said: “We’ve been designing and building our business steadily from the very start, aiming to provide sound market infrastructure and reliable service to our members and clients. Thanks to all the support from our members, technology providers, international clients, we’ve achieved a healthy and fruitful start, but that’s not the end of our journey. We will continue to create more products and deliver real value to the market.”
Mirko Marcadella, Managing Director of The Technancial Company, said, "We are pleased that our clients’ use of JANUS Risk Manager in close monitoring of Pan- Asian trading now includes the APEX RBD Palm Olein Futures Contract as well as many other heavily traded commodity products. Margins are an important measure of exposure as it develops and real time monitoring on new instruments may be key to their success. JRM with its easily configured rules can highlight risks before they become real problems.”
