In This Issue:
  • Letter from the Co-CEO: What Does the Future Look Like? by Lynette Lim
  • 2020 and Livestock Markets - What Else Can Happen? by Tony Drake
  • The Markets Corner: Working On Your Home While Working From home by Filippo Lecchini
  • Chart View: Calm Before the Storm - Navigating the Rapids on the Screen by Jeff Gilfillan
  • Market updates from AFX, DGCX, Eurex, HKEX, SGX, and The Small Exchange
LETTER FROM THE CO-CEO
by
Lynette Lim
What Does the Future Look Like?

“We think too much and feel too little. More than machinery, we need humanity; more than cleverness, we need kindness and gentleness. Without these qualities, life will be violent and all will be lost.”
           - Charlie Chaplin, The Great Dictator
 
Dear friends,

As election day draws closer in America and collective tension rises, those of us who work in the financial brokerage industry have to anticipate how the markets will behave in order to manage the risk of our customers who trade. It is always prudent to anticipate the worst, the largest possible move in the market, so that we are not caught with our pants down, figuratively speaking. If we expect large moves in the market, then we would take preventive measures such as asking for additional deposits from our customers and/or imposing some limits on their trading, as well as standing by for extra credit from banks. 
2020 and Livestock Markets - What Else Can Happen?
by Tony Drake

Being a bit superstitious, I hesitated to write that headline after all that has occurred this year, but if there ever was a year that could be called a Black Swan trading event, I think we found it. A black swan event is defined as an extremely rare event with severe consequences that typically cannot be predicted beforehand. Between international trade disputes, COVID-19, plant interruptions, and volatile price action, the livestock producer has been through a lot this past year.
The Markets Corner: Working On Your Home While Working From Home
by Filippo Lecchini

In this strange year 2020 we experienced something that for most of us, at least in Europe and the U.S., was completely unknown. The fear of COVID-19 dramatically reshaped day-to-day life for millions of people. For some of us, going to restaurants and shows is a distant memory, social life is confined to computer screens, and for those lucky enough to keep working, that also often happens from home. Our residence became the space that encloses all aspects of life, for better or for worse.
Chart View: Calm Before the Storm - Navigating the Rapids on the Screen
by Jeff Gilfillan

The U.S. election is on the horizon, and some brokerages and exchanges are adjusting in hopes of managing volatility. The CME is extending overnight circuit breakers from 3-5%. One large brokerage is at least temporarily raising initial margins requirements up to 35%.
Eurex Equity Index News – October 2020
  • Eurex's global MSCI offering - the perfect choice for Asia
  • Webcasts on-demand
HKEX’s MSCI Index Derivatives Suite Now Available to US Investors
20+ HKEX-listed MSCI equity index futures are now available for trading in the US!
DGCX’s Recently Launched FX Rolling Futures Contracts Deliver Significant Value to Market Participants Amidst Ongoing Currency Volatility
Dubai, 1 October 2020: Moving into the final quarter of 2020, the Dubai Gold and Commodities Exchange (DGCX) maintained its strong momentum, providing investors with a wide range of derivative products to manage their risk effectively. Last month, the DGCX’s three newly launched FX Rolling Futures Contracts – Euro (EUR), Pound Sterling (GBP) and Australian Dollar (AUD), all against the US Dollar (USD) – saw an increase in trading activity, and have now traded a combined total of 6,449 lots valued at USD 75 million since their launch in July.
AFX
Minority-Owned Banks Fuel Small Business and the Economy - Let's Get Them the Money

by Dr. Richard L. Sandor
This is a call to action for the financial services industry, where I have worked for more than four decades. Providing minority-owned businesses with access to capital should become a greater focus for us, our institutions and our government. In the short term, this will allow small businesses to stay viable. In the long-term, it will help create more jobs for minorities, ultimately easing racial tensions and economic disparities.
Precious Metals: ETFs vs Futures
Gold is hanging around its most expensive prices since futures on the commodity started trading almost half a century ago in 1974. While the price levels have increased, the action around gold has not. Volatility has only risen slightly in gold products, and it is in fact still below its historical average. As gold feels out new highs in a more calculated manner, its metallic companion silver has almost doubled in volatility.
SGX
SGX FTSE Taiwan Index Futures Sees Strong Growth
Since launch, liquidity in the SGX FTSE Taiwan Index Futures has grown significantly with more than 770,000 contracts traded or US$34 billion. Bid-ask spreads are comparable to the SGX MSCI Taiwan Index Futures, quoted consistently at 1 tick spread during the T Session.
ASIAN INDEXES