Richard Willsher
Richard Willsher

China and South East Asia

Rapid growth and technical change are continuing to drive electronic foreign exchange trading in China and South East Asia. The world’s biggest technology providers, banks and market makers are all active in the region, beefing up their capabilities and many hiring new staff. At the same time regional banks and brokers are rushing to offer more sophisticated technology to their customers. In the meantime they all have their eyes on China so that they’ll be ready for any significant changes that could open up the world’s most populous market and soon-to-be world’s largest economy.

As it stands, Singapore and Hong Kong appear to account for roughly 10% of global turnover in FX spot and forward markets, based upon the 2010 Bank of International Settlements Triennial Central Bank Survey, a report on the global foreign exchange market activity which is due for update in April 2013. More recent data collated by The City UK, the body that promotes UK financial services, suggests that Singapore ranks equal third with Tokyo after London and New York in terms of share of global foreign exchange turnover. The Singapore Foreign Exchange Market Committee reports that in April 2011 average daily turnover in spot, outright forwards and FX swaps was US$308bn, while average daily reported turnover in OTC foreign exchange derivatives was US$46bn. The latest figures are below.  Total FX and FX Derivatives Monthly Volume (adjusted for double counting of deals between survey contributors) Source: Singapore Foreign Exchange Market CommitteeJonathan Woodward“In China there was previously a...continued

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