Financial Derivatives in Emerging Markets: The Challenge of Keeping Markets Locally (Growth in the domestic derivatives market, non-resident transactions, DMA access, algorithmic and HFT)

JSE: Johannesburg Stock Exchange Stock exchange founded in 1887 during the first South African gold rush Derivatives exchange through SAFEX established in 1989, JSE acquired the business in 2001 84 different listed contracts in 8 categories Agriculture Bonds Currency Energy Equity Index Individual Equity Interest Rate Derivatives Metals (Precious and Non Precious) Number 14 in the FIA top exchanges ranking 2016, among 81 exchanges -1.9% drop respect 2015 Equity Derivatives growth in 2016 4% in value traded Category Contracts / Deals 2015 2016 % Change Equities 61,925,150 71,218,497 15% Equity Derivatives 448,040,993 427,449,339 -5% Bonds 454,285 461,299 2% Interest Rate Derivatives 5,692,757 9,435,718 66% Currencies 45,168,690 48,324,320 7% Commodities 3,500,065 3,426,080 -2%

ROFEX: Rosario Futures Exchange Founded 1909 as an agricultural futures exchange 2001: started trading FX futures, first financial futures in the country (currency, ARG-USD) 99% of the volume counts for one currency futures Number 6 top FX contract 14 different listed contracts in 6 categories FX Interest rate Equity index Precious metals, Energy Agricultural commodities Number 25 in the FIA top exchanges ranking 2016, among 81 exchanges 53.5% growth respect 2015 2016 (Jan-Dec)

TAIFEX: Taiwan Futures Exchange Founded 1998 as a financial futures exchange Almost 70% of the volumen traded counts for options on TAIFEX (stock index future) Number 11 top equity contract 27 different listed contracts in 5 categories Individual equity Equity index FX Interest rate Precious metals Number 21 in the FIA top exchanges ranking 2016, among 81 exchanges -8.6 drop respect 2015

How did our exchanges grow? Successful stories Lessons learned from failures The role of education

The challenge of diversification What do we need to expand futures trading? Which products are more easy to build liquidity on? Do these products have a common characteristic?

How can we build liquidity? Participants profile: market makers, proprietary traders, retail investors, etc. Technology: DMA, HFT, algorithmic trading

How regulation affects trading? Non-resident transactions The trade off between regulation and burocratic cost Which should be the driver of regulation?