Asian Foreign Exchange Trading Centres

Shanghai

Reference Article: https://www.channelnewsasia.com/news/asia/shanghai-quest-to-become-an-international-financial-centre-12965674

  • China is now the second-largest economy in the world, with the world’s second largest foreign exchange reserves. It is also the world’s biggest trading nation.

  • In 2019, Shanghai attracted a record US$19.05 billion in foreign capital, with foreign financial institutions increasing their presence in the city.

  • In the latest Global Financial Centres Index that takes “business environment”, “financial sector development”, “infrastructure factors”, “human capital”, “reputation and general factors”, Shanghai was ranked the fourth most competitive financial centre world wide, after Tokyo. Singapore followed in fifth position.

  • The city’s key selling point is its access to markets in mainland China.

Singapore SGX

  • The Singapore SGX is divided into 3 verticals: (1) equities, (2) data connectivity index (DCI), (3) fixed income, currencies and commodities (FICC).

  • SGX has fully acquired BidFX, an FX trading platform on 29 Jun 2020. SGX first acquired 20% of BidFX in March 2019.

  • A good FX trading platform requires market participants to benefit from price discovery, liquidity and transparency for both Over the Counter and futures trading.