The derivatives trading happening on exchanges in Asia was recently boosted by market participants based in foreign nations, executives from financial institutions such as Hong Kong Exchanges & Clearing and Singapore Exchange stated at a recent industry event.
At a session that was held in Chicago before the start of the latest annual version of the Futures Industry Association Expo, executives from various financial firms stated that in the last few years, derivatives trading volume attributed to those outside of Asia has risen, according to The Financial Times.
Various reasons were noted for the migration of traders to Asian markets, and Nick Notorangelo, director at technology company LaSalle Solutions, stated that some of the activity had been created by derivatives regulations, the media outlet reported. He specifically named the Dodd-Frank Act.
While industry participants in the United States have protested such regulatory regimes by saying that they could serve to undermine the trading of these financial instruments, Asian markets might benefit from the implementation of such restrictions.
Market participants might also be driven to conduct trades on Asian exchanges as a result of the confusion surrounding the regulations of derivatives trading that happens between counterparties in the United States and Europe.