Regulation of derivatives in Asia: when technology meets financial engineering

• Main Author: CHEN, Christopher C. H.
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2020
• Subjects: derivatives; financial regulation; financial innovation; reporting; clearing; mandatory trading; initial margin; Asian Studies; Banking and Finance Law; Finance
• Online Access: https://ink.library.smu.edu.sg/sol_research/3158; https://search.library.smu.edu.sg/discovery/fulldisplay?docid=alma99347912702601&context=L&vid=65SMU_INST:SMU_NUI&lang=en&search_scope=Everything&adaptor=Local%20Search%20Engine&isFrbr=true&tab=Everything&query=any,contains,Research%20Handbook%20on%20Asian%20Financial%20Law&sortby=date_d&facet=frbrgroupid,include,9059760129920654919&offset=0
• Institution: Singapore Management University

This chapter introduces the current state of derivatives market regulation in Asia following the global financial crisis. It focuses on Singapore and Hong Kong, the two largest international financial centres in the region. Singapore and Hong Kong have adopted international regulatory reforms, including mandatory trade reporting, centralized clearing, exchange trading requirements and the initial margin rule. The implementation has varied greatly because reporting requirements and initial margin rules have been implemented whereas clearing and trading requirements are waiting for full implementation. The arrival of financial technology may help Asian regulators oversee derivatives markets, by improving cross-border information sharing, reporting or collateral management. The combination of financial technology and derivative techniques may bring new markets for physical and futures trading. This may offer many opportunities in Asia and potential regulatory issues in the future that are worth monitoring to find global solutions.