Trading technology provider SunGard is to provide direct market access for index futures trading in China. Firms granted Qualified Foreign Institutional Investor status (QFIIs) will be able to send orders using FIX Protocol via the SunGard Global Network to Chinese futures brokers.
Trading of Chinese stock index futures contracts on the China Financial Futures Exchange began in April 2010. Although currently restricted to local players, SunGard expects that foreign investors will be able to participate in the near future.
There are a number of barriers to entering the Chinese mainland market for trading firms from outside of the country, although new routes to access are under discussion .
“The West is anxious for any open channel through which this market can be accessed,” said Paul Rowady, senior analyst at consultancy firm TABB Group adding that the hard-earned QFII designation and the CSI 300 Index Futures represent the best near-term channels for traders to gain access.
Yassine Brahim, president of SunGard's global trading business, commented that SunGard offers early testing capability to QFIIs interested in trading China's index futures. SunGard's Global Network offering currently links 2,000 asset managers and 110 markets, and also provides order routing for equities, fixed income and listed derivatives.