SunGard is offering a direct market access (DMA) solution to help global Qualified Foreign Institutional Investors (QFIIs) trade Chinese stock-index futures.
QFIIs will be able to send orders in FIX Protocol via the SunGard Global Network (SGN) to Chinese futures brokers and use a CFFEX (China Financial Futures Exchange) version of SunGard's GL Win trading solution.
Trading of Chinese stock-index futures contracts on China Financial Futures Exchange (CFFEX) debuted in April. Although the Chinese financial authority currently limits trading access to local players, QFIIs may be able to participate in the near future. SunGard is able to test electronic DMA access solutions with QFIIs to help them prepare for investing if and when authorization is granted. Chinese futures brokers will be able to receive FIX orders from QFIIs via SunGard's Global Network. The network links 2,000 asset managers and 110 markets worldwide. It also provides order routing for equities, fixed income and listed derivatives and assists in automating the entire trade lifecycle.
Paul Rowady, senior analyst at TABB Group and author of a recent report on trading in Asian derivatives, commented: "China is both one of the biggest markets - across most asset classes - as well as one of the most difficult to access from outside the country. The West is anxious for any open channel through which this market can be accessed. In general, the QFII designation and, in specific, the CSI 300 Index Futures, represent the most near-term channels to provide such eagerly awaited access."
Yassine Brahim, president of SunGard's global trading business, said, "Whenever Chinese authorities open access to local marketplaces, there is tremendous interest from the global financial community. Even if stringent requirements must be met before firms can trade China's index futures, requests for access will undoubtedly increase. SunGard helps international investors to access and trade on new electronic marketplaces, offering early testing capability to QFIIs interested in trading China's index futures."