Despite standing out as one of the best performing Asian markets recently, international investors face a number of deterrents, including delays and valuation problems.
Aberdeen’s Asia head of equity dealing notes the difficulty of managing numerous sales trading relationships in the region, and flags changes he’d like to see in other areas.
Bank compliance and legal counsel officers raise serious doubts over how new regulatory rules to curb rogue algo trading would be applied and who would potentially be held liable.
Investors and analysts doubt the latest reduction in transaction charges will have a positive market impact in the face of a slowing economy and the eurozone crisis.
The agency broker has extended the crossing system, which alerts buy-side firms to uncommitted orders on their peers’ trade blotters, to Asia’s equity markets.
Darren Tay, who runs the dealing desk at the Singaporean fund house, outlines some of his concerns, including market fragmentation and changing market microstructures.
Asia-Pacific stocks have seen sudden sharp price drops during the recent turmoil due to inappropriate use of trading algorithms, says John Tompkins of Senrigan Capital.