Six transformational trends in Asia-Pacific

Technology and regulation are driving change. BNP Paribas Securities Services explores how they are transforming clearing and settlement in Asia-Pacific.

Markets in Asia-Pacific are in a state of flux as factors such as new technology, regulations and settlement standards challenge the traditional methods of trading and clearing securities. The region’s exchanges are updating their connectivity infrastructure and introducing new products in an effort to stay ahead of the competition.

While these enhancements present an opportunity, participants need to be aware of the potential for increased complexity and costs as the region adapts to new operating models.

Asia-Pacific financial markets are known for being dynamic. But even within that context, a confluence of factors is transforming the way exchanges operate and how market participants connect to them.

BNP Paribas Securities Services has identified six areas these changes fall into: technological enhancement, settlement cycle reduction, market competition, product enhancement, international regulation and local regulation.