Market Opportunity in Asia-Pacific Capital Markets: Potential for Market Data Providers

by Anshuman Jaswal, PhD, December 1, 2014
Product Trends/ Reviews
Asia-Pacific

Abstract

The market data industry in Asia-Pacific has been growing steadily in the last few years.

It has seen a lot of competition among the leading global vendors, which are trying to gain a strong footing in the growing low latency data market. There are also some regional vendors which have been serving this market for some time.

In the report Market Opportunity in Asia-Pacific Capital Markets: Potential for Market Data Providers, Celent considers the market opportunity in the Asia-Pacific market data industry and discusses the potential of some leading regional markets, such as Singapore, Hong Kong, South Korea, India, Taiwan, and Malaysia. While smaller than the leading Asian market (Japan), each of these markets has potential for entrants, and we compare them on parameters such as market development, trade volumes, and presence of large sell side and buy side firms.

The figure compares the markets in terms of the number of tier I sell side and buy side firms and the asset size respectively, while the size of the bubble indicates the number of equity trades that occurred in the respective markets in 2013. South Korea is the leading firm when considering these three parameters. Singapore and Hong Kong also perform well, while India has a large cash equity market and derivatives market, especially with respect to the number of trades.

“Most of the leading firms focus on real time and consolidated datafeeds used mainly by brokers and hedge funds,” says Dr. Anshuman Jaswal, a senior analyst with Celent’s Securities & Investments practice and author of the report. “But some players are now beginning to focus more on growth segments such as analytics and OTC derivatives.”

The report begins with a discussion of the market system and socioeconomic indicators for the leading Asia-Pacific markets. This is followed by an analysis of the trading volumes for the cash equity and derivatives markets in the region, along with a look at the assets under management and the number of Tier I sell side and buy side firms in the respective markets. Finally, the report undertakes a brief comparison of the market presence and product offerings of the leading market data vendors in Asia-Pacific.

Celent is a research and advisory firm dedicated to helping financial institutions formulate comprehensive business and technology strategies. Celent publishes reports identifying trends and best practices in financial services technology and conducts consulting engagements for financial institutions looking to use technology to enhance existing business processes or launch new business strategies. With a team of internationally based analysts, Celent is uniquely positioned to offer strategic advice and market insights on a global basis. Celent is a member of the Oliver Wyman Group, which is a wholly-owned subsidiary of Marsh & McLennan Companies [NYSE: MMC].

Media Contacts

North America
Michele Pace
mpace@celent.com
Tel: +1 212 345 1366

Europe (London)
Chris Williams
cwilliams@celent.com
Tel: +44 (0)782 448 3336

Asia (Tokyo)
Yumi Nagaoka
ynagaoka@celent.com
Tel.: +81 3 3500 3023

Table of Contents

Executive Summary

1

Introduction

3

Market Overview

4

 

Exchange Trading Volumes

6

 

Assets under Management

7

 

User Classification

8

Market Data

9

 

Market Sizing

9

 

Comparison of Leading Market Data Providers

10

Conclusion

12

Appendix

13

 

Market Fundamentals

13

Leveraging Celent’s Expertise

15

 

Support for Financial Institutions

15

 

Support for Vendors

15

Related Celent Research

16

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