“Smart banks focus on aspects that will help them differentiate and win business”
Steve Grob, director of group strategy at Fidessa, discusses how Asian investment banks can leverage on technology to help them succeed in their businesses as they expand through the region. January 21, 2014 | Steve GrobOver the past few years, Asian investment banks have begun looking outside their own borders; expanding into neighbouring markets where they can use expertise gained in their home countries to win shares of new markets. These banks play an important role in facilitating cross-border business in and out of their home markets, particularly in the trading of equities and derivatives. Asian volumes continue to grow and outperform in a fairly flat global environment. Derivatives volumes on the Singapore Exchange (SGX) grew by 20% YoY in 2013; Bursa Malaysia hit all-time volume highs in derivatives; Japanese equities boomed; and the Philippines issued its first ETF. In this positive environment, it’s not surprising that institutions are looking next door, as it were, for the next growth opportunity. Derivatives volumes on the SGX grew by 20% YoY in 2013 Figure 1. Total number of derivatives contracts traded on SGX The maturation of Asian equity markets over the beginning of the 21st century has created fertile ground for such growth. Most Asian exchanges have undertaken or announced upgrades in recent years, piquing the interest of international institutions and allowing local ones to deal more efficiently in domestic stocks. Regulation has assisted the trend as well. While a unified approach to Asian market regulation is still far beyond the horizon, global changes like those of Dodd Frank and Basel have prompted Asian regulators to look more closely at intra-regional regulations, and begin discussions around how these may affect areas of common ground. Yet, performing cross-border business activities remains challenging in Asia. Unlike anywhere else in the world, banks in the region must grapple with complex webs of local regulations, trading cultures and market rules, as well as the requirements of foreig... Please login to read the complete article. If you already have an account, you can login now or subscribe/register.
Categories: Exchanges, Innovation, Markets & Exchanges, Risk & Compliance, Technology & Operations, Trading & DataExchanges,Innovation,Markets Exchanges,Risk & Compliance,technology,Trading & Data, Exchanges,Innovation,Markets & Exchanges,Risk & Compliance,Technology & Operations,Trading & Data, Keywords:Steve Grob, Fidessa, SGX, SET, NVDR Steve Grob, Fidessa, SGX, SET, NVDR
|