The 'Country Profile' section of the Global Investor Securities Finance Asia-Pacific Guide sets out recent developments and anticipated changes for the most active securities finance markets in the Asia Pacific region. The guide covers securities lending and synthetic finance as well as tri-party and repo. ICBC Standard Bank has supported this guide with expert eye sections on selected repo markets in the region.
Participation in Asia Pacific repo forms an important part of an increasingly international financing market.
Since the financial crisis, the repo market has changed fundamentally. A variety of new regulations, coupled with greater control from internal risk frameworks, have placed uncertainty around the product and, according to the latest International Capital Market Association (ICMA) survey, restricted growth.
At the same time, central bank policy has provided large amounts of liquidity to banks. The onward use of this liquidity, during a period of low outright interest rates and reduced spreads, has resulted in the repo market generally looking for new horizons.
There has been a clear trend for global finance being provided into an Asia Pacific market with a vibrant domestic and international fixed income market.
Following the harsh lessons of the 2000s, the need is greater than ever for providers to co-opt local knowledge to gain a deeper understanding of the collateral they are trading and the counterparty that is in receipt of the cash. I hope you will find this guide useful and insightful.
Head: Flow Sales, ICBC Standard Bank
Telephone: +44 203 145 6658