‘Work to­gether to strengthen Asian cap­i­tal marts’

New Straits Times - - Business -

KUALA LUMPUR: Asian mar­kets should not fear com­pe­ti­tion with each other, but should in­stead work to­gether to cre­ate stronger and more co­he­sive cap­i­tal mar­kets.

Ox­ford Fi­nance Group chief ex­ec­u­tive of­fi­cer Dr Ruben Lee said the in­fra­struc­ture in the re­gion in­di­cated that mar­ket struc­tures had re­mained the same.

“In this re­gion, there are five to seven coun­tries that want to be the sin­gle re­gional fi­nan­cial hub for the past 20 to 50 years, and they all want to pro­tect their na­tional mar­kets and re­strict com­pe­ti­tion to their na­tional mar­kets via trad­ing and clear­ance sys­tems.

“Asia has all the sav­ings and fi­nan­cial needs for its in­fra­struc­ture, but could not find in­ter­me­di­a­tion. Hence, the money has to go abroad and be re­cy­cled back here,” he said.

Lee said this at a panel dis­cus­sion ti­tled “Chang­ing Mar­ket Struc­tures and Im­pli­ca­tions to Re­gional Mar­kets” at the Global Emerg­ing Mar­kets Reg­u­la­tory Con­fer­ence at the Se­cu­ri­ties Com­mis­sion, here, yes­ter­day.

The ses­sion dis­cussed sig­nif­i­cant changes to global fi­nan­cial mar­kets fol­low­ing reg­u­la­tory re­forms and growth in tech­nol­ogy and mar­ket in­no­va­tion, which led to evolv­ing mar­ket struc­tures that have im­pli­ca­tions for cap­i­tal mar­kets.

Put­ting forth an ar­gu­ment for the mer­its of com­pe­ti­tion, Lee said the re­sults of such prac­tices could ben­e­fit many par­ties in the long run.

“The re­sults of the com­pe­ti­tion will be that maybe one or two of the seven coun­tries will be the re­gional hub, which will not be good for the rest who covet the po­si­tion.

“How­ever, it will be good for each of the na­tions, even when those na­tions do not pros­per in the way that they might have wanted.

“That is a vi­sion of where we are at the mo­ment,” he added.

Mod­er­ated by Asia Se­cu­ri­ties In­dus­try and Fi­nan­cial Mar­kets As­so­ci­a­tion head of pub­lic pol­icy and reg­u­la­tory af­fairs Wayne Arnold, the ses­sion also fea­tured Bloomberg Asia Pa­cific’s head of mar­ket struc­ture strat­egy Drew Brick and In­ter­na­tional Swaps and Deriva­tives As­so­ci­a­tion Asia Pa­cific re­gional di­rec­tor Keith Noyes.

Dr Ruben Lee

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