Richard Willsher
Richard Willsher

Regional e-FX perspective on Asia

Electronic trading across Asia continues to become more widespread and is increasing rapidly by volume. But, as Richard Willsher discovers, the countries and customers of the Asian theatre are so varied that it would be a mistake to see it as a single market where one size fits all.

Research published by Greenwich Associates in March 2014 found that in the previous year, the total volume of FX traded in Asia, ex-Japan executed through electronic systems increased. However this growth failed to keep pace with the overall growth FX trading volume conducted by any method. This illustrates the growing appetite for FX trading across the region but also that not all geographical areas can support the technology required for fully-fledged e-trading. A spokesperson for the Monetary Authority of Singapore points out that Asian markets have been more voice-brokered, particularly in emerging Asian FX, as compared to the more advanced markets in London and New York. According to a report by Greenwich Associates, the share of G10 cash currencies trading executed electronically is 79%, significantly higher than 56% for emerging markets. Asian markets have been slower to adopt e-trading due to a variety of factors including the heterogeneous make-up of the Asian marketplace and the differing levels...continued

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