As the Asia-Pacific region picks up again, there has also been an increase in Asian FX trading. But, unlike most other regions, it is not necessarily the large institutional players that are exhibiting the most sophistication. Mark Pelham reports.After six years in the doldrums, the Asia-Pacific region (excluding Japan) seems to be on a genuine upswing again. Combined with the global search for yield, this is generating a renewed interest in FX trading. As in the rest of the world, FX is increasingly being used as an asset class; but, unlike other regions, those using the most advanced FX products are the supposedly less sophisticated, small corporate users and retail investors.
While Asia-Pacific may be regarded economically and geographically as a separate region, in today’s financial markets it is not so straightforward. “FX is an international business,” says Ed Hulina, global head of FX marketing at UBS Investment Bank. “The needs of FX users are more segment driven than regionally driven.”
