ABN AMRO is planning to centralize its Asian derivatives businesses in Hong Kong and is getting ready to shift some 70 staff from Singapore. Firm officials said the details have yet to be ironed out, but noted the move is being driven by a greater focus on opportunities in the Northern Asian markets of Hong Kong, China, Taiwan and Korea. Officials at the firm expect the relocation to commence in two-to-three months. Li Koon Lim, spokeswoman in Singapore, declined comment.
ABN trades fixed income, credit and foreign exchange derivatives out of Singapore and equity out of Hong Kong. Market officials said the move will allow ABN to reduce operational costs by placing all trading out of one center.
The initiative is in line with several rival derivatives houses, including ING Financial Markets (DW, 2/3/03) which shifted fixed income trading from Hong Kong to Singapore, and more recently UBS, which centralized Asian credit trading out of Hong Kong this year (DW, 1/7). JPMorgan has also transferred senior fixed income staff from Singapore to Hong Kong (DW, 9/17).
Hong Kong is starting to win more business from Singapore, according to bankers in the region. This is because of dealers' eagerness to participate in China's anticipated growth.
