This page contains a Flash digital edition of a book.
REGIONAL e-FX PERSPECTIVE


and watch. No one here wants to rush into regulatory reforms before examining them carefully.”


Achieving SEF and OTC status


“With APAC playing an increasingly influential role in the global financial markets [regulation] is a hot topic,” says Jamie Salamon. “We are already seeing clearing of non deliverable forward (NDF) products, foreign exchange options (FXO) are moving towards central clearing and trading is being focused on swap execution facilities (SEF) or organised trading facilities (OTF). We will start to see the current platforms increasingly gearing up their e-trading capabilities to meet the regulatory requirements and get SEF/OTF status. We will also likely see more requirements for post-trade transactional reporting”


However Joseph Ng at Philip Futures highlighted that, “From US to Asia, regulatory bodies around the world are looking to bring more transparency and accountability into the derivatives market, which will certainly have a major impact on the overall FX market. Controls and transparency are well and good if they can be implemented reasonably without


disrupting business flow. Tis will create high barriers to entry for investors, and possibly curb the growth of the industry, making the market place niche and opening it to only the big boys, high net worth and sophisticated traders. It is also foreseeable that market participants will move to set up business in countries not affected by such reforms.”


Forex clearing


In October of this year Singapore Exchange (SGX) launched a clearing service for FX non-deliverable forwards in Asian currencies. Te eligible currencies are Chinese Renminbi (CNY), Indonesia Rupiah (IDR) Indian Rupee (INR), Korean Won (KRW), Malaysian Ringgit (MYR), Philippine Peso (PHP) and Taiwan New Dollar (TWD).


Regulatory pressure in due course may lead to higher volumes and additional products such as client clearing. In addition if it emerges in due course that FX options fall within new regulatory parameters SGX advises that this may be added to the range of products and facilities that it offers. Readers can find further details of the SGX clearing facility in the leader article of this issue of e-Forex.


Meanwhile several established global exchanges have launched new currency futures products over the past several years and Singapore is no exception Singapore Mercantile Exchange has launched EUR/USD Futures and CME has launched some Asia currencies futures.


FX prime brokerage


One of the currently growing business streams of the global banking groups and larger local players in the region is prime brokerage (PB). However while it may assist clients and capture business flow for providers, prime brokerage brings with it concerns which the current crisis in the Eurozone and the inexorable tightening in the interbank market are not helping.


Joseph Ng


“With e-trading becoming the norm and with the presence of stronger competition, prices have also narrowed tremendously.”


78 | january 2012 e-FOREX


“South East Asia is a highly fragmented market with many countries and different regulatory frameworks. Regulations in a lot of countries, unlike Europe, do not permit financial institutions to participate in the FX market,” says Nomura’s Saurabh Sharma. “Terefore we expect demand for FX prime broking as well as cross asset PB services to continue to grow as more hedge funds and high frequency players look to provide liquidity to institutions in the region but would have very limited access without a PB.”


Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20  |  Page 21  |  Page 22  |  Page 23  |  Page 24  |  Page 25  |  Page 26  |  Page 27  |  Page 28  |  Page 29  |  Page 30  |  Page 31  |  Page 32  |  Page 33  |  Page 34  |  Page 35  |  Page 36  |  Page 37  |  Page 38  |  Page 39  |  Page 40  |  Page 41  |  Page 42  |  Page 43  |  Page 44  |  Page 45  |  Page 46  |  Page 47  |  Page 48  |  Page 49  |  Page 50  |  Page 51  |  Page 52  |  Page 53  |  Page 54  |  Page 55  |  Page 56  |  Page 57  |  Page 58  |  Page 59  |  Page 60  |  Page 61  |  Page 62  |  Page 63  |  Page 64  |  Page 65  |  Page 66  |  Page 67  |  Page 68  |  Page 69  |  Page 70  |  Page 71  |  Page 72  |  Page 73  |  Page 74  |  Page 75  |  Page 76  |  Page 77  |  Page 78  |  Page 79  |  Page 80  |  Page 81  |  Page 82  |  Page 83  |  Page 84  |  Page 85  |  Page 86  |  Page 87  |  Page 88  |  Page 89  |  Page 90  |  Page 91  |  Page 92  |  Page 93  |  Page 94  |  Page 95  |  Page 96  |  Page 97  |  Page 98  |  Page 99  |  Page 100  |  Page 101  |  Page 102  |  Page 103  |  Page 104  |  Page 105  |  Page 106  |  Page 107  |  Page 108  |  Page 109  |  Page 110  |  Page 111  |  Page 112  |  Page 113  |  Page 114  |  Page 115  |  Page 116  |  Page 117  |  Page 118  |  Page 119  |  Page 120  |  Page 121  |  Page 122  |  Page 123  |  Page 124  |  Page 125  |  Page 126  |  Page 127  |  Page 128  |  Page 129  |  Page 130  |  Page 131  |  Page 132  |  Page 133  |  Page 134  |  Page 135  |  Page 136  |  Page 137  |  Page 138  |  Page 139  |  Page 140  |  Page 141  |  Page 142  |  Page 143  |  Page 144  |  Page 145  |  Page 146  |  Page 147  |  Page 148  |  Page 149  |  Page 150  |  Page 151  |  Page 152  |  Page 153  |  Page 154  |  Page 155  |  Page 156  |  Page 157  |  Page 158  |  Page 159  |  Page 160  |  Page 161  |  Page 162  |  Page 163  |  Page 164  |  Page 165  |  Page 166  |  Page 167  |  Page 168  |  Page 169  |  Page 170  |  Page 171  |  Page 172  |  Page 173  |  Page 174  |  Page 175  |  Page 176  |  Page 177  |  Page 178  |  Page 179  |  Page 180  |  Page 181  |  Page 182  |  Page 183  |  Page 184  |  Page 185  |  Page 186  |  Page 187  |  Page 188  |  Page 189  |  Page 190  |  Page 191  |  Page 192  |  Page 193  |  Page 194  |  Page 195  |  Page 196