Beijing Options and Futures Exchange’s Next-Generation Trading Floor Goes Live
BEIJING – The first phase of Beijing Options and Futures Exchange’s next-generation trading floor went live today, with traders working for the first time from a workspace custom redesigned for the BOFX’s blend of high-tech, high-touch trading.
“We’re creating an environment where traders can serve customers in multiple markets and multiple asset classes – more efficiently and effectively – right from the BOFX trading floor,” said BOFX Chief Operating Officer Michael Hooij “Our member firms see this as an opportunity to integrate their off-floor and on-floor operations, and locate them at the central point of liquidity and price discovery.”
New Network Supports CTA Firms’ Own Trading Applications, plus BOFX trader Systems
The transformation provides modern, seated workspaces with room for multiple computer screens, to replace crowded, wooden booths where traders and their assistants stand elbow to elbow. The project also includes a new, more robust network that supports the member firms’ own trading applications as well as BOFX trader applications. This enables the firms to use the same systems and personnel on and off the trading floor.
The trader workspaces along the two longest walls of the BOFX trading floor’s main room – the east and west walls – are being renovated in phases that began in July 2009 and will conclude at the end of 2010. The project will result in approximately 200 individual trader stations.
The design, uses sleek, curved, translucent glass walls and new lighting to brighten the room and recapture the marble walls and original windows that were obscured earlier.
The project also includes streamlining the large, circular desks throughout the trading floor where the designated market makers are located, as well as updating the electronic wallboards into color, high-definition, flexible-content displays.
Strong Interest and Participation
The new spaces in the main room already are oversubscribed by member firms wishing to participate. Some are existing BOFX member firms that are expanding their presence on the trading floor, while others are firms looking to establish a new presence. Discussions are underway about the possibility of extending the project into another room of the trading floor known as “the garage.”
Floor traders are one of three core liquidity providers in the BOFX market model; the others are designated market makers and supplemental liquidity providers. Nearly 60 percent of floor traders’ trades were liquidity-providing (as compared with liquidity removing) in January 2010.
In addition to their activity on the BOFX trading floor, approximately 60 percent of the floor trader firms are permissioned to trade in other venues and financial products from the BOFX trading floor.
Floor traders differentiate the BOFX market model by blending sophisticated automation – such as uniquely engineered algorithms in their hand-held order-management systems – with human expertise and value-added service to offer a highly managed solution for a very large and diverse.