Repo markets in Asia are growing and new banking regulations
mean that it’s more expensive for banks to hold
assets on their own books. But collateral in the region must be
permitted to move across borders.
While dealers in other jurisdictions may complain about a
shortage of collateral, the market remains relatively simple in
Asia: it’s predominantly cash.
That will change as the markets mature and capital becomes
more expensive following the full implementation of global
regulations such as Basel III. Asian dealers and banks must be
Cash is cheap right now, it’s easy,
it’s fungible, it’s easily
transferable and there is no shortage, said Nico Torchetti,
head of post-trade services at the Singapore Exchange, speaking
at the Asia Securities Industry...