Japan’s Derivatives Market: Toward Greater Stability and Transparency
Abstract
In recent years, repeated revisions of regulation tightening have been undertaken to boost the stability and transparency of Japan’s derivatives market. These have paid dividends, and the nation’s derivatives market has been enjoying sound if modest growth. However, to continue this growth, efforts to increase market stability and transparency will be needed.
In this new report, Japan’s Derivatives Market: Toward Greater Stability and Transparency, Celent examines the current state of Japan’s domestic derivatives market and analyzes its potential for future development. The report also examines the current states of and contrasting tendencies between the domestic listed derivatives market and the over-the-counter derivatives market while offering an international comparison and in-depth analysis of transaction and trading volumes.
In 2011, Japan’s listed derivatives market recorded 404.3 million transactions. While this level pales in comparison with the world’s major derivatives exchange, transaction volume is growing steadily. Japan’s OTC derivatives market in 2011 logged approximately 5.1 million transactions, accounting for approximately one-fourth of all such global transactions.
“For Japan’s derivatives market to maintain growth, it needs to win the trust of investors by continuing efforts to boost stability and transparency,” says KyongSun Kong, an Analyst with Celent's Asian Financial Services Group and author of the report.