Conference speakers highlighted the importance of non-Japan Asia, and especially China, for future increases in derivatives volumes. "This is the most exciting market in terms of growth potential," said Michele Faissola, managing director and global head of over-the-counter derivatives for global markets at Deutsche Bank in London.
Most conference delegates' eyes were firmly focused on the potential of China. Xinqiang Zhu, general manager of the global markets group at the Bank of China in Beijing, said planned derivatives regulation in China is expected to be issued in the coming months, which will aid development.
In the rest of non-Japan Asia, South Korea is the hottest market. Korea is the largest generator of revenue, according to Philip Tsao, managing director and joint head of the Asian debt capital markets group at UBS Warburg in Hong Kong. This is partly because of a tripling of the exotic bond market to USD6 billion (DW, 6/16). Credit products in Korea are also expected to take off with the Bank of Korea taking a more open stance toward products, such as CDOs.
