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Andy Nybo Bailey McCann, Opalesque New York:
Investors and managers seeking new markets and better returns are focusing in on Asia. The domestic Asian financial services industry is also growing to meet this rising demand. As Opalesque previously reported, investors based in Asia-Pacific, specifically institutional investors, are actively looking for opportunities. Despite this increased attention investors and managers outside the region may find it difficult to access these markets.
Many of Asia's markets are closed to foreign direct investment, a condition which has frustrated global investors. However, the tide may be turning according to research from Tabb Group, "It is this regulatory isolation that provides an
opportunity to the region’s highly competitive exchanges seeking to expand their
franchises. And there is substantial pent-up demand for instruments that can
provide precise exposure to a specific company domiciled in the closed markets
of Asia," the report says.
Listed derivatives and the OTC market are currently bridging the gap, but regulators are starting to look at ways to limit OTCs as those instruments often exist outside of their purview. According to Tabb Group, the global effort to lower counterparty risk is driving i...................... To view our full article Click here
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