Asia Risk/News
Thai equity derivatives market to double
Demand from corporate and private bank investors to drive growth in Thai structured product market
Korean regulator allows synthetic ETFs
Issuance of South Korean ETFs to remain largely from local managers despite changes to allow synthetic ETFs
Newedge to offer OTC clearing in Asia
Broker seeks to broaden its Asia offering by adding OTC IRS clearing in Singapore
NZX to launch equity derivatives market
New Zealand Stock Exchange to launch equity derivatives to meet demand for hedging instruments
Thailand insurers shun interest rate derivatives for RBC liability hedging
Derivatives and structured products remain unpopular with Thai insurers looking to hedge their liabilities following the introduction of a risk-based capital framework
ASX to use cross-margining efficiencies in battle for Australia clearing market
Australian domestic clearing house hoping to use lower margin costs as a means to win market share
RBI sees developing repo markets necessary in meeting Basel liquidity rules
India central bank views repo as an increasingly important market in the wake of Basel III implementation
Chinese equity derivatives master agreement close to being finalised
Securities firms in China have begun trading OTC equity derivatives, with a final master agreement expected soon
Little incentive for China to implement Fatca
The US is pushing to sign up as many countries as possible to an IGA, but for China signing an IGA appears less appealing
Basel II implementation in Vietnam by 2015 remains challenging
While the Vietnam regulator is consulting on setting up an asset management company to take on NPLs to help clean up domestic banks' balance sheets, slow progress is being made towards Basel II
Revised LCR falls short on ending Basel III concerns over trade finance
The relaxation of Basel III’s liquidity coverage ratio (LCR) requirements have been a major boon to trade finance, a sector which expected to suffer badly from the new regulatory regime. But not all issues related to Basel III have been resolved
Proposed derivative restrictions for Singapore insurers to have a limited impact
New MAS proposals to unify investment guidelines for all insurers, and in doing so limit derivatives usage, will not affect existing investment policies for insurance firms
OTC derivatives trading for securities companies to take off in China
Pilot programmes by the CSRC to encourage OTC derivatives trading for securities companies in China
Yen threatened by Japan insurers unwinding dollar/yen hedging positions
While foreign hedge funds have been driving down the value of the yen, now Japan insurers may strengthen the trend
On the move
On the move
BoJ target leaves Japan inflation swap market unmoved
Doubling Japan's inflation target has been viewed as a big deal internationally but players on the ground say the impact on the domestic inflation market has been limited
Hong Kong retirement funds may be exempt from Fatca
The largest pension schemes in Hong Kong can potentially be exempted from Fatca after being judged by the US to be low risk for tax evasion
CME launches three-year CNH futures contract to meet dim sum bond hedging demand
CME to offer CNH futures from February 25; becomes second provider after HKEx launched CNH futures contract last September
Philippine central bank NDF curbs won’t stop peso appreciation
Attempts by the Philippine central bank to curb increases in the value of the local currency won't work, according to market observers
US firms returning to iron ore derivatives after SGX and CFTC clear regulatory obstacles
The CFTC’s no-action relief letter issued late last year and SGX’s upcoming iron ore futures contract have ended uncertainty and brought back hesitant market participants
Global liquidity flows threatened by Dodd-Frank provision on foreign banks
Japanese banks criticise proposed US regulation of foreign banking entities
HKMA warns banks not to weaken liquidity profile to benefit from LCR phase-in
Hong Kong regulator to consult banks on new LCR this quarter and assess level playing field implications before deciding on whether to adopt a phased approach
Undeveloped Asian capital markets continue to make hedging difficult
A lack of liquidity is still providing problems for corporates looking to hedge – even in Hong Kong
HKEx to start OTC clearing in April
The Hong Kong bourse is set to start OTC derivatives clearing in April and is planning to expand its cross-asset derivatives offering over the next two to three years