In the second of a series of whitepapers from Equinix and Kapronasia, the latest report looks at trading in Singapore, and its central role as a diverse and efficient trading hub in Asia, with an especially well developed OTC derivatives market, ranked 8th globally.
Building on the G20 Pittsburg Summit major OTC derivatives markets have been very busy implementing major reforms in centralized clearing. Singapore however was relatively slow to react to the changes, but rules are now clear and centralized clearing is in operation.
The other major story presented in the report is of increasing closeness between Singapore and China, with RQFII being rolled out to Singapore, allowing eligible institutional investors access to the quota system. This will only reinforce Singapore’s role as a major FX hub in the region, having overtaken Japan last year to make it the third-largest FX trading market in the world.
The report ties together the broad regional trends, including the internationalization of the RMB and changing trends with regards to FX trading across the region, and the demand for increasingly sophisticated derivatives products, to present the picture of an evolving and dynamic market that everyone needs to know more about.
Read the full version of ‘Trading in Singapore’ report here.
Trading in Singapore Report
