Asia Risk 15: Asian ascendancy in equity derivatives

The equity derivatives business in Asia has experienced dramatic ups and downs during the past 15 years. But overall growth, particularly for equity structured products, has been phenomenal. Harry Thompson reports

The equity derivatives market, notably the structured products market, was hit hard by the recent financial crisis, particularly in 2008. Volumes remain depressed even now, with some bankers estimating that the private bank market is currently around one-third of its size in 2007.

Bankers, however, remain optimistic despite this current low point. “The secular trend is strong. Most countries now have derivatives products, index futures and retail markets for warrants and structured investments