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


JP Morgan’s Shankar Hari sees the greatest growth potential in South East Asia as residing in the countries outside Singapore. “Most Singaporean clients have already been mined,” he says. “But in other markets such as Philippines or Indonesia or Malaysia there is greater scope for growth. As local regulations become more relaxed it will also lead to higher liquidity in their FX markets.”


“Japan remains the largest retail margin trading centre in APAC despite the de-leveraging regulations brought in over the last couple of years,” explains Jamie Salamon at RBS. “However there is a definite trend for growth outside of Japan and this is centred mainly in Hong Kong, although pockets of substantial retail FX business also exist in South East Asia.” He anticipates continued growth in the retail space.


Other influences


Regulation is likely to remain a significant influence for the foreseeable future. Te credit risk challenges currently confronting FX options business lead many to believe that it will be necessary for there to be clearing houses located in each time zone to cover each


“We want to be the clearing centre of choice in Asia,” Muthukrishnan Ramaswami


FX derivative product, whether NDFs, options and perhaps futures.


Consequently as co-president of the SGX exchange Muthukrishnan Ramaswami surveys the future he sees it as holding great prospects for his business and for Singapore as a regional hub. “We want to be the clearing centre of choice in Asia,” says Ramaswami.


“OTC transactions by nature are borderless but there will also be instruments that are principally domestic and participants may want those to be cleared locally. We will have to wait for the regulations to emerge. We currently list on SGX over 95% of the bonds listed in Asia that are issued cross border. But not domestic issues of which there are a great many. With other products it will be the same way. We see that the risk management will have to happen in each time zone where the risk happens. Terefore, broadly speaking there will be the need for a clearing centre in each of the three time zones.”


His message, like those of others in the vibrant South East Asian market, is that this is a region where FX is a rapidly growing, technology facilitated business. Tis is where there is going to be a lot happening as continued strong economic fundamentals power the development of new FX products and capabilities over the coming years.


86 | january 2012 e-FOREX


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