Richard Willsher
Richard Willsher

Asia

Dodd Frank, RMB and Mrs. Watanabe: Richard Willshire reveals how all signs point to a great leap forward for e-trading in Asia’s foreign exchange market, where regulation, trade in renminbi and the Japanese retail sector are the outstanding features in the landscape.

First Published: e-Forex Magazine 55 / Regional eFX Perspective / January, 2014

The preliminary results of the 2013 BIS Triennial Central Bank Survey of turnover in foreign exchange markets published in September show that daily volume in April last year in the three principal Asian centres of Hong Kong, Singapore and Tokyo amounted to USD1,032 bn per day. This was up more than a quarter on the same measure three years earlier. Together they account for 15.4% of global daily turnover, marginally less than the 16.2% in 2010 but the total was larger. Moreover the BIS findings are regarded as conservative by market commentators who say that they do not fully take account of internal netting by banks and broker dealers. The actual figure could be significantly higher. Furthermore these BIS numbers take into account spot transactions, outright forwards, currency swaps and FX options but not futures. The change in the make up of instruments traded, and we look at this later, is showing a significant shift. For example CME, which offers 61 futures contracts and 31 options out of its...continued

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