Opportunity for Asia to capitalise on lessons from market integration initiatives in Europe
Satvinder Singh, global head of trust and securities services and cash management for financial institutions at Deutsche Bank discusses how the bank seeks to help customers negotiate the “new normal”. February 19, 2013 | Foo Boon PingThe establishment of the ASEAN Trading Link takes the prospect of regional financial market integration a step closer to reality and presents enormous opportunities for market participants. The trading link brings together seven regional exchanges with a combined capitalisation of about $2.1 trillion, representing the fourth largest market in Asia Pacific. Satvinder Singh, global head of trust and securities services and cash management for financial institutions at Deutsche Bank, believes this is an opportunity to take the lessons from initiatives—such as CCP, CEE and Target-2 Securities aimed at forging market integration in Europe—to Asian markets. However, he is quick to caution that Asian markets are vastly different and more complex. There are a lot more currencies and diverse legal and regulatory regimes to deal with. Notwithstanding the diversity in the current market structure, Singh sees the bank playing an active role in contributing to and facilitating development in the regulatory landscape and the financial market infrastructure in Asia. He sees the bank bringing an approach that is focused on cooperation between public and private sector stakeholders. The bank recently published a white paper presenting a model for an ASEAN post trade link that emphasises interoperability and ease of entry and access for market participants. It sees opportunities and challenges especially in the development of central counterparties (CCPs) and central securities depositories (CSDs) in post trade integration and wants to bring a balance of regional and global perspective to the discussion. “When applying lessons we learnt elsewhere to what is applicable in Asia, we are not just transplanting them as they are, but we take into account the market differences and the diverse nature of this region by giving them an Asian flavour, he elaborated. He observes that in Asia, it will become increasingly apparent to market... Please login to read the complete article. If you already have an account, you can login now or subscribe/register.
Categories: Trade Finance, Transaction BankingTrade Finance,Transaction Banking, Trade Finance,Transaction Banking, Keywords:Deutsche Bank, ASEAN Trading Link, CCP, CEE, Target-2 Securities, CSD Deutsche Bank, ASEAN Trading Link, CCP, CEE, Target-2 Securities, CSD
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