The longstanding conundrum which often perplexes FX firms across the globe is how to enter mainland China and sustain business.
Many FX companies are well aware of the potential business that can be attained from within China, and with the assistance of clever payment processing systems, have managed to attract Chinese clients to Western companies, in turn generating significant volume.
The challenge for many firms lies in how to actually legitimately establish business within China, a feat which has been achieved by front-end trading solution provider Horizon Software, which yesterday became the first vendor to offer an options trading system in China’s mainland.
Horizon Software’s perspective is that along with the long-awaited opening of the options markets, market participants in China have been looking for a flexible, powerful and easily-integrated solution. This initiative was mandated by the Chinese government some three years ago in order to develop investment banking and, in particular, derivatives trading in China.
As part of its push for greater capital market liberalization, China will launch equity index options on the CFFEX and single stock options on the Shanghai Stock Exchange. This move has been welcomed by market participants across Asia as it will provide more investment opportunities and far greater access to Chinese assets than is possible at present. The launch is scheduled for Q4 2014.
“We’ve had an active presence in China since 2013 and now count more than ten clients, including five of China’s top ten securities and futures houses among our clients. Our commitment to China is very strong and we recognize the huge potential of this market,” says Jean-Marc Delfarguiel, Horizon’s CEO. He adds: “We are used to dealing with the specific requirements of the Chinese market and tailor our software to suit our customers’ individual demands. China is of great strategic importance for us and we have a China-based team dedicated to our Chinese clients”.
Horizon’s products are available in Mandarin and provide access to the two exchanges through the Chinese FIX-equivalent standard. The front-end trading solutions from Horizon are the only ones on the market to be fully compatible with all the exchanges’ requirements.
The company’s electronic trading platform will provide options market making as well as Delta 1 and algorithmic trading.