NEWS UPDATE
ASIA
DRW to break into Hong Kong market for first time with new trading desk
New desk will initially focus on options , cash equities and futures , with plans to expand into other asset classes in the future .
Market maker DRW Holdings is set to expand into the Hong Kong market for the first time with a new trading desk .
The firm is currently in the process of gaining a financial services license from Hong Kong ’ s Securities and Futures Commission ( SFC ) and exploring exchange membership options with Hong Kong Exchanges and Clearing ( HKEX ) to begin market making in index futures and options and cash equities towards the end of this year .
Newly appointed managing director of the Hong Kong business at DRW , Stuart Knowling , will be responsible for the expansion plans .
Trading desk wise , the team will start off fairly small , as some trading strategies can take up to three to six months to develop . The team will also initially add quants , analysts and technology developers alongside traders .
“ DRW ’ s plans to open an office in Hong Kong builds on the strength of our existing business in Singapore and expands our global footprint ,” said Knowling . “ We see Hong Kong as a gateway to China in terms of market access , but it also provides a deep pool of trading , quant , and tech hires .”
After a year of setting up its initial business , the market maker then intends to expand into other asset classes within the region . It is not so prevalent in equities in Asia and so this is one potential area for expansion . DRW has had a crypto business since 2014 and this could also be another area that it chooses to expand into further within Hong Kong .
The move will further diversify DRW ’ s existing offering in Asia and expand its global footprint . The market maker has roughly 1700 members of staff globally , however , just 60 people on the ground in Singapore . Hong Kong and Mainland China have launched several collaborative initiatives in recent years including the Stock Connect service aimed at expanding southbound and northbound ETF trading between the two .
10 // TheTRADE // Q3 2023