Reuters is out with the latest announcement from the China Financial Futures Exchange (CFFEX), citing that the exchange last month relaxed trading rules on stock index futures and vowed to boost liquidity of that market.
Responding to the move, Wang Feng, a former Wall Street trader and co-founder of Alpha Squared Capital, a Hangzhou-based hedge fund, noted:
“The widespread usage of derivatives will make returns more stable … increase liquidity, and new strategies may emerge. The industry will enter era 2.0. The most difficult time may have passed already.”
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