Derivatives Success
MANAMA: Global trading in derivatives has increased by about 15 per cent over the past year, in spite of the bad image they may have acquired from the financial meltdown.
This is largely because trading in more sophisticated products has moved away from relatively unregulated over-the-counter markets to more transparent market platforms, according to Bahrain Financial Exchange (BFX) director Arshad Khan.
He was speaking at the first BFX annual exchange conference at the Ritz-Carlton Bahrain, Hotel and Spa yesterday which attracted around 150 of the leading players in the Bahrain financial markets.
BFX expects to be up and running early next year as a unique investment platform covering every aspect of investment, from international equities and bonds to derivatives and commodities.
""BFX will put everything on one single market and as it is licensed by the Central Bank of Bahrain. It will offer both robust regulation and transparency to investors in the market," said Mr Khan.
"Issuers of everything from world stocks and indices to commodities, currencies and debt instruments will be able to trade on this platform when it is up and running.
"We have organised this as the first annual conference ahead of us being up and running as an exchange so we can involve the Bahrain financial community and help inform them about who we are.
"We have also been informing them about our plans for a BFX academy which will offer training in trading on any of the products on our exchange."
He said that while the level of trading that could be achieved on the Bahrain market depended on investors, the open and regulated nature of the market made it very positive.
The financial exchange in India, which represented a fairly closed market, had a turnover of around $6 billion last year, he pointed out.
"We expect to be up and running around the turn of the year and we are pretty positive about an upturn in the investment climate by then," he said.
"People who have money to invest will be looking for the right platform and that is something we can offer and give them confidence.
"This market is something that will help the whole financial market in Bahrain including brokers, clearing banks and it should provide a boost to the whole economic business support services."
business@gdn.com.bh
Quoted from: Gulf Daily News
This is largely because trading in more sophisticated products has moved away from relatively unregulated over-the-counter markets to more transparent market platforms, according to Bahrain Financial Exchange (BFX) director Arshad Khan.
He was speaking at the first BFX annual exchange conference at the Ritz-Carlton Bahrain, Hotel and Spa yesterday which attracted around 150 of the leading players in the Bahrain financial markets.
BFX expects to be up and running early next year as a unique investment platform covering every aspect of investment, from international equities and bonds to derivatives and commodities.
""BFX will put everything on one single market and as it is licensed by the Central Bank of Bahrain. It will offer both robust regulation and transparency to investors in the market," said Mr Khan.
"Issuers of everything from world stocks and indices to commodities, currencies and debt instruments will be able to trade on this platform when it is up and running.
"We have organised this as the first annual conference ahead of us being up and running as an exchange so we can involve the Bahrain financial community and help inform them about who we are.
"We have also been informing them about our plans for a BFX academy which will offer training in trading on any of the products on our exchange."
He said that while the level of trading that could be achieved on the Bahrain market depended on investors, the open and regulated nature of the market made it very positive.
The financial exchange in India, which represented a fairly closed market, had a turnover of around $6 billion last year, he pointed out.
"We expect to be up and running around the turn of the year and we are pretty positive about an upturn in the investment climate by then," he said.
"People who have money to invest will be looking for the right platform and that is something we can offer and give them confidence.
"This market is something that will help the whole financial market in Bahrain including brokers, clearing banks and it should provide a boost to the whole economic business support services."
business@gdn.com.bh
Quoted from: Gulf Daily News
