Celent introduces the report ‘Asian Securities Exchanges Landscape’ with the analysis of major industry trends from 2002 to 2008.
In 2007, Asian equities trading was dominated by six exchanges, which accounted for 80% of total trading volume and 86% of trading value. However, equities trading activities at the Asian exchanges weakened significantly in 2008 as a result of the worldwide financial crisis.
Since 2003 Asian markets have experienced the rise in listing revenues, initial public offerings, demand for market data and as a result the need for better information services to the forefront. 4.3 billion derivative contracts were traded at Asian stock exchanges in 2007 despite the economic crisis. Stock index options are the most popular instruments in Asia, followed by commodity futures and stock index futures.
Asian bond markets are still underdeveloped. The number of bonds listed at the Asian exchanges has grown at a moderate rate compared to growth in the equities markets. Total bond trading value has remained more or less the same over the last six years. This trend, however, does not exhibit any slowdown in 2008 despite the slowdown in the equities markets.
“The Asian exchange industry, following a worldwide trend, has undergone major changes in structure and governance model, and many exchanges have become publicly traded companies through demutualization,” says Arin Ray, analyst and author of the report, Celent. “The exchanges are highly profitable and growing, with an average profitability of almost 50%.”
L.D.