Rosario Futures Exchange

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Rosario Futures Exchange (ROFEX)
ROFEX.jpg
Founded 1909
Headquarters Rosario, Argentina
Key People Andrés Ponte, Chairman
Products Futures contracts
Website www.rofex.com.ar/eng

The Rosario Futures Exchange (Rofex), founded in 1909 and known locally as Mercado a Termino de Rosario, is an Argentina-based derivatives exchange offering futures and options contracts on several local agricultural commodities, energies, currencies, interest rate and stock index futures.

The exchange received approval in January 2019 from regulators to merge Rofex with the Mercado a Termino de Buenos Aires (MATba), also known as the Buenos Aires Futures and Options Exchange. The merger is expected to be completed by May 2019.[1]

Rofex ranked 23rd in 2018 in the Futures Industry Association's global list of derivatives exchanges measured by volume, up 28 percent to 192 million contracts from a year earlier. [2]

Background

The Rosario Futures Exchange was established in 1909 as the "Mercado General de Productos Nacionales" (General Exchange of National Commodities) and mostly traded agricultural commodities during its first years of operation. It later became a government regulatory agency and official grain purchaser. In the early 1990s Rofex began negotiating and trading grain contracts in U.S. dollars, opening the way for free trading of commodity derivatives. In 1998, Rofex introduced an electronic trading platform called e-ROFEX.

The exchange's derivatives financial division began trading U.S. dollar - Argentine peso futures and options contracts in 2002, and those contracts eventually made up the vast majority of Rofex market volume.[3] Overall trading volume on Rofex ballooned from just 17,387 in 1996 to 18,211,700 in 2006, including a leap from 408,470 in 2002 to 8,165,481 to 2004. Driving this growth was a 30-fold leap in trading volume for the peso-dollar contract between 2002 and 2005.

In 2006, the exchange demutualized, allowing an more open membership model and in 2010 it introduced electronic trading.

In 2011, the exchange announced a merger deal with Mercado de Valores de Rosario (MervaRos), or the Rosario Stock Exchange, putting it in competition with the Buenos Aires Stock Exchange. That deal was subsequently voted down by the stock exchange shareholders in March 2012.[4] [5]</ref> [6]

This followed a fallout of the potential merger between Rofex and commodity derivatives exchange Mercado a Término de Buenos Aires (Matba) in late 2010.[7] On Dec. 27, 2011, MervaRos and Rofex announced plans for Argentina's other three domestic bourses to join the integrated group.[8]

However, in a reversal of prior history, the exchange received approval in January 2019 from regulators to merge Rofex with the MATba, also known as the Buenos Aires Futures and Options Exchange. The merger is expected to be completed by May 2019.[9]

Key contracts

Financial:

  • US Dollar Index Futures
  • Euro Index Futures
  • Rofex 20 Index Futures and Options
  • Bond Futures and Options
  • BADLAR Interest Rate Contract
  • Sovereign Bonds Futures

Commodities:

  • Soybean Futures & Options
  • Soybean Index (ARS) Futures
  • Wheat Futures and Options
  • Corn Futures and Options
  • Chicago Soybean Futures and Options
  • Chicago Corn Futures and Options
  • Basis Futures and Options
  • Deliverable Corn Futures

Key People

Annual Volumes

Year Total Annual Volume Percent Change
2018 192,340,218 28.1%
2017 1150,138,251 32%
2016 113,367,851 53.5%
2015 73,870,916 13.3%
2014 65,187,932 27.4%
2013 51,176,700 .2%
2012 51,071,227 (-) 7.1%
2011 55,000,041 (-) 11.4%
2010 62,046,820 20.5%
2009 51,483,429 --

References

  1. ROFEX and MATba to Merge into a Single Futures Exchange. Finance Magnates.
  2. 2018 Annual Volume Survey. Futures Industry.org.
  3. Rosario Futures Exchange (ROFEX). Afmorg.net.
  4. Argentine exchange merger to boost competitiveness. The Trade.
  5. Argentine exchanges agree to merge. Financial Times.
  6. Rofex and MervaRos merger falls through. FOW.
  7. Argentina’s Matba open to merger with Rofex. Financial Times.
  8. Argentine exchanges plan further integration. Financial Times.
  9. ROFEX and MATba to Merge into a Single Futures Exchange. Finance Magnates.