Derivatives Trading in Asia: Struggle for Regional Supremacy

by Anshuman Jaswal, PhD, February 1, 2011
Industry Trends
Asia-Pacific

Abstract

The Asian derivatives market has shown a lot of promise in the last few years. Asian exchanges are well-poised to take advantage of the growth that is expected in the region. This rapid growth is leading to strong competition, forcing the exchanges to continually innovate and diversify in their efforts to survive and succeed.

In a new report, Derivatives Trading in Asia: Struggle for Regional Supremacy, Celent examines the landscape for derivatives trading in the Asia-Pacific region. The region has strong economic growth and resulting strong requirements for derivatives trading. The introduction of a number of new products, especially in an exchange-traded environment, is expected to spur further growth as well as competition.

The Korea Exchange is in a league of its own, while the other exchanges can be compared to each other. The Chinese and Indian exchanges have increased their market share by volume in Asia and have reduced the overarching dominance of Korea Exchange. This trend is expected to continue. The overall volumes for Asia have grown by more than 26% in this period.

“Asian derivatives exchanges have laid down the marker for their global counterparts,” says Anshuman Jaswal, Celent Senior Analyst and author of the report. “It is important for them to build upon their recent success by enhancing their product range, adopting better technology, and increasing cross-listings of derivatives products.”

Celent is a research and advisory firm dedicated to helping financial institutions formulate comprehensive business and technology strategies. Celent publishes reports identifying trends and best practices in financial services technology and conducts consulting engagements for financial institutions looking to use technology to enhance existing business processes or launch new business strategies. With a team of internationally based analysts, Celent is uniquely positioned to offer strategic advice and market insights on a global basis. Celent is a member of the Oliver Wyman Group, which is a wholly-owned operating unit of Marsh & McLennan Companies [NYSE: MMC].

Media Contacts

North America
Michele Pace
mpace@celent.com
Tel: +1 212 345 1366

Europe (London)
Chris Williams
cwilliams@celent.com
Tel: +44 (0)782 448 3336

Asia (Tokyo)
Yumi Nagaoka
ynagaoka@celent.com
Tel.: +81 3 3500 3023

Table of Contents

Executive Summary

3

Introduction

6

Market Overview

7

 

Trends in the Asian Derivatives Markets

7

Comparison Between Exchange-Based and OTC Trading

13

Product Comparison of Exchanges

15

Leading Asian Derivatives Exchanges

20

 

Korea Exchange (KRX)

20

 

National Stock Exchange of India (NSE)

23

 

Singapore Exchange (SGX)

25

 

Australian Securities Exchange (ASX)

26

 

Osaka Securities Exchange (OSE)

28

 

Taiwan Futures Exchange (TAIFEX)

29

 

Hong Kong Exchange (HKEx)

31

 

Tokyo Financial Exchange (TFX)

33

 

Tokyo Stock Exchange (TSE)

34

 

Bursa Malaysia

36

Conclusion

39

Leveraging Celent’s Expertise

41

 

Support for Financial Institutions

41

 

Support for Vendors

41

Related Celent Research

42

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