South Korea is well on its way to entering the next stage in the development of advanced market structures as it overcomes regulatory hurdles. FSC Korea is well-advised to reconsider its present market share limitation on primary venue and individual stock trading. Providing an enabling environment for ATS means relaxing existing restrictions and widening options for participants as Korea remains a relatively retail-heavy market. More importantly, market users will be able to realise tangible gains in the form of lower trading fees and tick sizes. Elsewhere in the region, the volumes under the Hong Kong–Shanghai connect programme remain underwhelming and China’s domestic OTC market is a work in progress, but the long-term strategic goal of integrating with the international capital markets through a managed transition is both prudent and wise. Asia’s financial markets are in a state of evolution as markets remain fragmented and the lack of harmonisation continues to challenge the aspirations of participants who wish to access deep and liquid capital markets.
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