Euromoney, by Paul Golden

A recent survey of Asian FX trading organizations found that 70% were already using electronic platforms.

In April, the Monetary Authority of Singapore announced that it had given regulatory approval to R5. The electronic venue’s CEO, Jon Vollemaere, observes that while eFX in Asia has increased liquidity in major currencies, emerging-market currencies have largely remained unchanged.

“Different countries have different levels of eFX trading,” he says. “India and South Korea are highly electronic, but Indonesia, the Philippines and Malaysia are far less so while China is somewhere in the middle. There has been volume growth in some of these buy lexapro india currencies, but that is due more to economics and changes in policy than electronic adoption.”

Vollemaere says FX traders in Asia are frustrated with a lack of transparency and periods of limited liquidity and see electronification as the solution, but acknowledge that simply plugging a G10 platform into the Asian markets isn’t the answer. “It is also apparent that China will go down its own path, not necessarily following the ISDA/CLS route,” he says. “It is much more likely that China will develop the CFETS/CIPS/CHIX path and have the world come to them.”

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