Electronic Trading Update: Attractive Markets Lie to the East
Report Summary
Electronic Trading Update: Attractive Markets Lie to the East
Given steady trading volume, technology and infrastructure upgrades, and growing market fragmentation, Asia-Pacific markets are ripe for electronic trading.
London, 8 January 2013 – A new report from Aite Group explores electronic trading in the Asia-Pacific. Based on Aite Group interviews with broker-dealers, asset managers, exchanges, and technology vendors, the report discusses some of the difficulties faced by electronic traders in U.S. and European markets and considers the evolution of the Asia-Pacific into an attractive market for opportunity-seeking electronic traders.
Barriers to the advancement of electronic trading, such as constricting regulation and dwindling volume, are appearing in developed markets and may hinder the growth of electronic trading within those markets. As a result, firms heavily involved in this form of trading are looking for alternative places in which to develop their trade. The still-evolving Asia-Pacific markets, with their stable liquidity, trading-friendly regulation, developing landscape, and greenfield opportunities, are fulfilling the needs of electronic traders from the United States and Europe.
“The developed markets of the Asia-Pacific—Japan, Australia, Hong Kong, and Singapore—have developed their infrastructure to align with those of the United States and Europe and are now focused on developing their market structure via the introduction of alternative venues,” says Simmy Grewal, senior analyst with Aite Group and author of this report. “Meanwhile, the emerging markets of Korea, Taiwan, and India are hot on the heels of their counterparts in terms of technology upgrades; with regulatory revisions, they will be primed to accept significant foreign investment.”
This 34-page Impact Report contains nine figures and one table. Clients of Aite Group’s Institutional Securities & Investments service can download the report.