A healthy derivatives market is an important element to Japan’s plan to become a global leader in asset management. Asset managers are eager to increase their use of derivatives to better take and manage risk, but note that there is an opportunity to make the market more accessible. Discussions with 20 senior asset managers based in Japan revealed that reducing barriers in the market would enable them to utilize derivatives more efficiently, which, in turn, could enhance Japan’s competitiveness in the global market.
Nearly 80% of respondents indicated that derivatives are currently important to help achieve their strategies and objectives, and also mentioned that derivatives usage benefits both portfolio management and product development. Therefore, they are looking to improve how they trade and process derivatives.
Portfolio managers will need to respond to the changing macroeconomic environment and look to the derivatives market to help manage the implications of potential drivers such as interest rate changes. They may add derivatives to an existing strategy or launch new investment products. Either way, a robust market is necessary to ensure that portfolio managers succeed on behalf of their clients.
Click on the attached PDF to read the full report. A Japanese version is also available.
Documents (2) for The Derivatives Market in Japan: Tapping into the Potential
Latest
An Important Step Towards Efficient Reporting
Of all the problems that have hindered effective trade reporting in the derivatives market, one of the most difficult to resolve has been duplication. In the EU, both parties to a trade are mandated to submit the same information, while...
The ISDA Notices Hub: One Year On
In times of war, armed forces are often required to mobilize over large distances at short notice. The most dreaded response to the question of how they are to be transported is ‘by LPC’, meaning ‘leather personnel carrier’ – the...
ISDA Response to OSC Call for Feedback
On June 26, ISDA responded to the Ontario Securities Commission’s (OSC) consultation on facilitating access to its regulatory framework and reducing the burden for capital markets participants by publishing a machine-readable dataset of regulatory instruments. ISDA's comments are supportive of...
ISDA Comments on EP's MISP Draft Reports
On July 15, ISDA shared comments with policymakers in the European Union on the European Parliament’s (EP) draft reports by Member of the European Parliament (MEP) Markus Ferber and MEP Eero Heinäluoma on the Market Integration and Supervision Package (MISP)....