Globalisation of the world’s money markets has taken a big step forward as stock exchanges in Brazil, Hong Kong, Russia, India, South Africa announced they will cross-list each others’ stock index futures and contracts for index options.
Last year the volume of futures traded in Asia exceeded for the first time the volume traded in North America.
This move will place additional pressure on traditional bourses, already under pressure in their home markets from ‘dark pools‘.
For the emerging market bourses the move is expected to lead to additional activity rather than cannibalisation.
The co-operative move also appears more effective than the Singapore exchange’s attempt earlier this year to take over the Australian stock exchange.
Other similar cross-listing alliances have already been formed between other developing-country exchanges.