Summary: | This research paper seeks to develop a deeper insight into the derivatives markets in Asia. It is achieved by first providing a basic understanding of the working mechanics and types of derivatives products available before introducing the reader to various current macro trends around the globe. An analysis was also attempted to illustrate the idiosyncrasies of the Asian market, with special attention paid to identify the underlying opportunities and obstacles present in Asia.
Central-clearing and standardization for the over-the-counter markets are significant developments which play crucial roles in shaping the future regulatory environment. While a number of Asian countries are taking steps to adapt to the changes domestically, other factors, such as the robustness of the legal system, question the viability and sustainability of the reforms.
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