OTC Derivatives in Asia

Over-the-counter (OTC) derivatives have come under scrutiny since the Global Financial Crisis (GFC) of 2008. The global OTC derivative market is primarily dominated by the US and Europe, with Asia accounting for less than 10% of notional outstanding. The Asian financial market, unlike its western counterparts, is not a homogeneous entity. Rather, the countries in the region are divided along jurisdictional lines with limited regional integration. Thus Asia not only consists of a large number of countries with each at different level of economic development, they also have different regulatory and monetary regimes. This has resulted in a number of highly localized markets with the exception of a few, notably Hong Kong and Singapore. In two new reports Celent discusses the development in the OTC markets in 11 Asian countries, divided into two groups. The first report looks at the advanced economies and includes Australia, Hong Kong, Japan, New Zealand, and Singapore. The second report covers the emerging economies of China, India, Indonesia, Malaysia, South Korea and Taiwan. It is interesting to note that the emerging countries account for only 9% of total OTC turnover in these countries, even though there share is much higher on other economic and financial indicators.blog
Arin Ray About Arin Ray

Arin Ray is an analyst with Celent's Securities & Investments practice and is based in the firm's New York office. Arin's expertise lies in capital markets where he has extensive research experience in exchange trading, clearing and settlement, brokerages, and use of technology in capital markets. In his recent consulting work, he has advised a large European financial services provider to devise their post trade (settlement) strategy, a tier 1 Japanese brokerage in their product and technology strategy, and a leading international exchange in their market entry and growth strategy in Asian markets. He has published research reports on exchange and over the counter trading, exchange strategies, and adoption of trading technology in different sub-segments of capital markets.

Arin has been quoted regularly in the media, including Reuters, Wall Street Journal, Financial Times, Dow Jones, Press Trust of India, Economic Times, Financial Express, Finance Asia, Global Investor Magazine, BusinessWeek, Business Standard, Asian Investor, Pension & Investment, Business Week, and Securities Industry News. In addition, he regularly contributes bylined articles for the financial media; his articles have appeared in The Journal of Trading, Advanced Trading, Free Press Journal, FT Asian Investment, gtnews, and Ignites Asia among others.

Arin received his MBA from the Indian Institute of Management, Bangalore and B.E. in Electronics and Telecommunication Engineering from Jadavpur University. He is fluent in English, Hindi and Bengali.

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