Evolution in South Korea’s Derivatives Market: Factors for Change
Abstract
South Korea’s listed derivatives trading market boasts the world’s greatest trading volume, accounting for roughly 20% of the global total, and it continues to grow steadily. In contrast, the nation’s OTC derivatives trading volume possesses a meager 0.19% of the global pie, lagging significantly behind other world markets.
In the report Evolution in South Korea’s Derivatives Market: Factors for Change, Celent analyzes the current status and future prospects of South Korea’s domestic derivatives market. The report takes a look at the most traded listed derivatives market in the world as well as its lagging over-the-counter (OTC) derivatives market counterpart, contrasting the trading volumes and value of each as well as placing them in an international context.
Financial markets in South Korea have undergone significant reforms and are reaching a major turning point. Growth-promoting factors are paving a path for expected growth, the prospects of which are examined in this report.
“While South Korea’s derivatives market may not be able to maintain its steep growth curve, it should continue its solid growth due to support from substantial financial market reforms that are taking place,” says KyongSun Kong, an Analyst with Celent's Asian Financial Services Group and author of the report.
This report delves into the regulatory infrastructure of South Korea’s derivatives market, examines the transformation afoot in the nation’s overall financial market, and analyzes the collective effects these are likely to have on the derivatives market.