On December 1^st and 2^nd, 2018, in the 14^th China (Shenzhen) International Derivatives Forum, SDS presented the latest service functions of its data center platforms. It’s believed that the new functions would largely improve in real time the security of the cross-market, cross-product and cross-region information exchange of futures companies. During the event, leaders of several industrial authorities and industrial experts came and visited our exhibition booth and kindly shared with us many pertinent and constructive instructions on SDS’s product development and strategic planning of cooperation. Most warmly, they encouraged us to integrate business and technologies, invest more in integrated innovation to meet domestic futures industry’s need of developing global market, and improve product quality and service capacity in general. 

▲Guests discussing technical solutions with SDS representatives at SDS Exhibition Booth

Being a data communication service provider that focuses on supporting organizations in futures markets, SDS aligns its operations with the ‘serving the real economy’ directive of China Futures Association and focuses on meeting the trading technology needs of domestic exchanges and futures companies. Equipped with finance market oriented service platforms, the SDS IDX data centers are able to help financial institutions, including market information suppliers, banks, brokerage companies, exchanges, multiple trading facilities (MTFs), payment clearing and settlement institutions, to maintain economic, efficient and reliable business operations and finish all business transactions in the quickest way possible. SDS is well received by our customers for its high-quality connectivity, excellent transaction performance, all-round technical support, and high-standard service system.

Looking back into 2018, people would see that China had made substantial progress in opening up its domestic futures market to the outside world. In terms of futures products alone, the scale of the opening was widely expanded both horizontally and vertically. For example, the Crude Oil contract has been successfully launched. Attracted to Iron Ore contract and PTA contract, overseas investors have entered into Chinese market. SDS IDX Futures Data Center played an important role in ensuring the success of some of the above-said transactions with its high-standard services. The promulgation of the Measures for the Administration of Foreign-Funded Futures Companies, CSRC Directory No. 149, marked the historical moment when Chinese futures industry officially opened itself to foreign investors. In chorus with the ‘binging-in’ actions, ‘going global’ actions were also on the way. Chinese exchanges made enthusiastic efforts to improve their strategic planning for overseas markets. Considering the facts that the opening-up is a complicated process involving the development and enacting of different rules, contracts, technologies and relevant laws and regulations, SDS responsively aligned its operations with latest policies and instructions, maintained effective communications with all parties in the market, lived up to the trust of the industry with high quality supports, and successfully laid a solid foundation for future success.

On December 1^st, when addressing the 14^th China (Shenzhen) Derivatives Forum, Mr. Fang Xinghai, the Vice Chairman of CSRC, indicated that all participants of the market should be prepared for the restoration of normal transaction of Stock Index Futures products, and, China would open more futures products to foreign investors and encourage and help futures companies to go IPO in domestic and international finance markets. The next day, on December 2^nd, the market witnessed a great increase in the liquidity of stock index futures contracts driven by following moves, i.e. the margin on Chinese stock index futures was reduced by half, the transaction fee down by 1/3, and the single-day trading limit up to 50 lots per contract. Not only were the policy adjustments made so quickly (actually, the next day after the indication), the policies themselves took effect right on the next trading day, which was way faster than market anticipation. On December 3^rd, in an enthusiastic response, a number of futures companies actively participated into the market with the help of SDS IDX futures data center platform.

Compared with matured markets, Chinese derivatives market is still on the way of development and innovation and still has a great space for future development. For example, in USA, an example of matured markets, the nominal market value of futures and options positions accounts for about 22% of the total value of the same stocks. But in China, the ratio is 0.3%. That means there is a great derivatives market in China to explore. Vertically and horizontally, a great variety of trading products will emerge in floor market and OTC market. With this in view, SDS IDX data center platform will remain loyal to its original aspiration and serve Chinese real economy by providing high-quality and high SAL communication services for the derivatives market and meet the challenge of future with more integrated innovations.