Monthly Archives:: May 2010

THE RISE OF ASIA AS A GLOBAL TRADING DESTINATION: BUSINESS OPPORTUNITIES & CHALLENGES

Posted by & filed under Capital Markets, Events, Global Markets, Solutions: Trading.

In Japan, by 2008, the majority of trading was already through electronic channels. There is also a trend, within that flow, for more algorithmic execution and less ‘point-and-click’ DMA.
In Hong Kong around 28% of institutional flow was electronic with two-thirds of it DMA. However, this data is a more than a year and we would expect to find a greater share for algorithmic solutions today. Singapore, Korea and Taiwan show similar figures and trends: around 25% being electronic and a slow trend within that flow for more algorithmic trading at the expense of DMA.

POST-TRADE FOR DERIVATIVES: HOW MANY PRODUCTS CAN WE POSSIBLY CLEAR IN THE DERIVIATIVES WORLD?

Posted by & filed under Capital Markets, Derivatives, Events, Solutions: Post-Trade, Solutions: Trading.

In Hong Kong the back-office support of derivatives activity has become more complex because volumes are rising and products traded are becoming more elaborate. The capabilities of back-office organisations are being stretched and the current level of technology is not resilient enough. More ASP (application service provider) service is needed.

WHAT IS THE GROWTH POTENTIAL FOR ETFs IN ASIA IN 2010?

Posted by & filed under Capital Markets, Events, Global Markets, Solutions: Trading.

Index Futures and Equity Swaps (also known as CFDs) are products that give similar exposure to ETFs. While ETFs are not yet as widely used as the other two products, around a third of the larger firms are using them today with a significant increase in adoption over the last two years. Equity swaps can be used for purposes of hedging protection, access, “equitisation” and leverage; that most ETFs are useful only for access and “equitisation” may be limiting their adoption. However, in the US, ETFs are traded at fine spreads and can enable a better appreciation of transaction costs which may be attractive to asset managers.