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From Karsten Schroeder, CEO Amplitude Capital (www.ampcap.com): As a systematic trading fund, Amplitude always seeks to integrate new electronic markets provided they meet our stringent qualifications. However in general the transition to electronic markets on the commodity side is still slow, despite some positive examples, such as Brent Crude Oil on the IntercontinentalExchange (ICE) formerly the IPE.

Lobbying for pit-trading still remains strong in the U.S. Instead we see some Asian exchange in countries like India, China and Japan increasingly offering electronic access and execution. However volumes remain small at present but they continue to grow thus increasing the attractiveness of those markets. A reason why volumes are low in Asia is that most Asian exchanges are younger than their U.S. counterparts.

With demand for commodities in economies like China, India, Korea, Taiwan growing, it is anticipated that the volumes traded on those exchanges will pick up. From the technology point of view the younger exchanges in Asia tend to use more of the latest technology so the transition required to trade those markets could be perceived as shorter. The only remaining challenge for direct market access is that most of these exchanges do not allow direct order routing to non-members and not all members that we have looked at have the requisite connectivity and technology currently. It is an evolving area and remains ......................

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