Asian markets face a pivotal year in 2025, shaped by three key dynamics: the continuing accumulation and deployment of wealth, uncertain geopolitical conditions including potential impacts from US policy shifts which may lead to volatility, and ongoing structural reforms across Asia’s diverse capital markets. 

Asia remains a very dynamic region. While the regulatory landscape has been challenging in countries like China, South Korea and India, we are seeing tremendous wealth creation in markets such as India and Southeast Asia. From a capital markets perspective, Japan has offered the region valuable lessons in how to stimulate market activity through a package of measures and corporate governance reforms. Elsewhere in Asia, the capital markets emergence from a decade-long low interest rate environment has been slower. We will be looking closely at China, Hong Kong and Singapore as they find means to stimulate growth and investment in public markets.   

As a growing Asian quantitative asset manager, our focus will be on Australia, India and Japan. We believe that caution and volatility will likely be the significant themes of 2025, but opportunities will be available for those who can navigate Asia’s intricacies.   

Jon Hodges, head of trading and asset services APAC, FIS     

The capital markets landscape is poised for significant shifts in 2025, driven by evolving investment strategies, regulatory developments, and the push for operational efficiencies. Across APAC, the convergence of buy- and sell-side demands is reshaping how market participants approach technology and service integration.     

Private markets continue to be a standout growth area, with robust interest in Southeast Asia and Australia as the ongoing shift in capital provision from banks to non-banks continues. The increasing sophistication of private capital strategies reflects a broader trend toward democratising investments and enhancing access to diverse asset classes, including the fast-growing private credit market. Elsewhere, Japan is fostering growth in its asset management sector by encouraging individual savings and operational reforms among listed companies. 

Operational scalability remains a priority, with institutions exploring business process outsourcing to meet cost-efficiency goals while navigating regulatory complexities. Around 75% of leaders from UK and Singapore view outsourced managed services as having a high impact on cost reduction, according to FIS’s 2024 Global Innovation Research. Meanwhile, technology-driven solutions, such as advanced securities matching platforms and portfolio management systems, are helping organisations streamline workflows and improve market connectivity.    

As APAC’s capital markets evolve, the interplay between local nuances and global influences will continue to shape the competitive landscape. Success will depend on aligning technological advancements with client needs while adapting to the unique regulatory and market structures of the region. 

Lee Bartholomew, global head of FIC ETD product design, Eurex     

The outlook for European FIC volatility in 2025 depends on several factors that may cool or fuel further uncertainty. European rates volatility is set for further benign periods as rate cut cycles in the US and Europe reach their lows by mid-2025. This assertion requires a continued return of inflation to central bank targets and economies growing at on consensus paces with low and stable unemployment.    

Potentially rising government debts, however, present upside risk for rates volatility, be it due to US tax cut extensions or infrastructure investments from various European sovereign issuers paired with growing political uncertainty there with early elections in Germany and most likely in France limiting effective policies.

Against this backdrop, I consider that credit is going to be an interesting space. We expect macro factors to be supportive of credit, and therefore, expect to see an acceleration in the use of credit derivatives.   

Kerim Acanal, global head of emerging markets, Tradeweb    

Emerging markets investors will have to navigate several uncertainties next year, from the threat of new trade tariffs under the Donald Trump presidency to mounting inflationary pressures, and questions around the Federal Reserve’s interest rate cutting path. There is also increasing geopolitical risk, such as the ongoing Russia and Ukraine conflict and the reignited Syria crisis. It is clear that financial markets will be anything but quiet next year, and it will be interesting to see the impact that these events will have on emerging markets participants.

However, despite the many unknowns, I would expect one theme to remain consistent, namely the role electronic trading can play in ensuring efficient risk transfer during times of heightened market stress. Being able to offer emerging markets investors a complete electronic trading toolkit covering all asset classes will be key, and at Tradeweb our goal is to continue to develop a host of trading protocols, functionalities and products that make trading more efficient and streamlined, while helping to further electronify our core emerging markets regions. 

Duncan Higgins, chief executive officer, Sustainable Trading 

In 2025, we predict a turning point for European capital markets: a move away from siloed thinking and towards greater collaboration to address shared challenges too. Historically, market participants have operated with a divisive mindset, prioritising rivalry over cooperation.  

Yet, with subdued trading volumes, geopolitical divides following Brexit, and growing global competition, the industry can no longer afford to remain as fragmented.  While various initiatives aim to improve markets, progress has been slow, hindered by these entrenched divisions. However, firms are beginning to recognise that collective action may be the only viable path to building more effective and resilient markets. By setting aside differences, market participants can work together to foster a stronger, more capable ecosystem; a better, more vibrant market benefits everyone. 

Embracing a more collegiate approach doesn’t mean abandoning competition, firms can still differentiate. But in areas where cooperation unlocks mutual benefits, 2025 could be the year joint efforts take centre stage.  

This shift mirrors the spirit of collective action already seen in other areas, such as sustainability, where progress relies on shared commitment to change. By working together, those active in European markets can secure a stronger future, fostering growth and resilience for the benefit of all stakeholders. 

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The development will be used to support the commercial bank’s RMB cash bond market-making under Bond Connect and its USD interest rate swap (IRS) market-making in Hong Kong.

Read more: Bloomberg and HKEX enhance Swap Connect solutions to facilitate global investments for IRS market

Bloomberg’s sell-side solutions – which include TOMS and ETOMS – will allow the bank to optimise its trading services for international investors; automate the workflows of bond pricing, sales and trade execution; and electronify USD IRS market-making.

“As China’s financial markets continue to open up, China Minsheng Bank is committed to strengthening ties and communications with foreign investors and enhancing our market-making capabilities,” said Qingyu Wang, head of financial markets department at China Minsheng Bank.

“Our collaboration with Bloomberg provides automated workflows for better operational efficiency, a transparent price display channel to facilitate informed decision-making and a means to reach out to global investors.”

TOMS was previously adopted by China Minsheng Bank to book multiple asset class exposures, enabling real-time profit and loss and risk analysis, as well as integration with back-office settlement systems.

The addition of ETOMS will enable the commercial bank to send customised quotes to clients, provide pre-trade quotes and axes into aggregation tools, and display real-time quotes on a designated page of the bank on the Bloomberg Terminal, bolstering communication and trading efficiency among investors overseas.

“We are pleased to strengthen our partnership with China Minsheng Bank and support its international business development with our industry-leading sell-side solutions,” said Dahai Wang, head of Greater China at Bloomberg.

“Electronic trading and automated workflows are important trends in global finance, enhancing competitiveness through more accurate pricing, smoother trade execution, and efficient risk management.”

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Announced on social media, the move was described as marking “a significant milestone in Millennium Advisors’ growth, reinforcing [its] commitment to the APAC region”. 

The strategic development is set to pave the way for enhanced global operations for the firm, as well as signalling Millennium Advisors’ commitment to its counterparties. 

Read more: Millennium Advisors hires from within for new head of EMEA sales

Earlier this year, Millennium Advisors partnered with fixed income software solutions provider Investortools to streamline workflows for municipal bond investment managers through digitisation. 

Through the partnership, Millennium is set to be fully featured as an electronic trading package for straight-through-processing, enabling users to lift, bid, counter and receive allocation details electronically directly within Investortools’ software.

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Rohit Verma

The platform, aimed at the global FX market, combines the benefits of an NDF CLOB with clearing.

Rohit Verma, head of post-trade Asia Pacific at LSEG, said: “As a leader in the Asian NDF market and Singapore’s first LCH ForexClear member, we look forward to supporting their clearing activity on the platform.”

LSEG’s fully cleared non-deliverable forwards (NDF) matching platform went live in November 2023 following the initial announcement in May. 

The Singapore-based platform has the backing of the Monetary Authority of Singapore (MAS) and represented the first stage of LSEG re-platforming its FX venues to its core technology. 

Kelvin Ng, group head of global markets, at UOB, said: “Through this service, we are able to benefit from enhanced execution and access to cleared liquidity in addition to the operational efficiencies that LSEG’s end to-end-solution provides.”

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Specifically, the offering enhances and aligns trading opportunities for users across the Korean, US, and European time zones, making Korean derivatives available during US and European trading hours.

Milan Galik, chief executive of Interactive Brokers highlighted exactly what time means for users: “Clients can now take advantage of extended hours to trade in one of the world’s most liquid derivatives markets. Our global client base, including APAC, European and American clients, benefit by having access to KOSPI derivatives during normal and extended trading hours, regardless of location.”

Through the expanded trading hours, products include: KOSPI 200 Options, Mini-KOSPI 200 Futures, KOSPI 200 Futures, and USD/KRW currency futures.

Speaking in an announcement, the firm confirmed that recent regulatory changes have made processes easier for foreign investments in South Korean equities.

“These changes are expected to elevate South Korea’s status from an emerging to a developed market, making it more appealing to global institutional investors,” said the company.

Read more: Interactive Brokers expands European trading through Cboe Europe Derivatives

Interactive Brokers’ clients can trade Korean derivatives along with the rest of the business’ offering from a single unified platform across various currencies, including the Korean Won.

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If authorised, Mizuho is set to leverage its presence in the region which includes several offices.

The firm will provide services and solutions across high added value funds raising and management, centring on bonds. These will be available to issuers and investors both within and outside of China.

The capital markets in China are the world’s third largest fee pool, with further investment in the region and market expansion expected across the industry, asserted Mizuho.

Read more: Celebrating International Women’s Day with… Mizuho’s Lu Fu

According to the firm, “through the new securities company in China, Mizuho will contribute to the further development of the Chinese capital markets and provide even stronger support for clients’ China and renminbi-related business”.

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The launch follows the Group’s global institutional FX exchange, LMAX Exchange, receiving a Recognised Market Operator (RMO) licence from the Monetary Authority of Singapore (MAS) in November last year. 

Read more: LMAX Group given green light for NDF trading in both Singapore and London

The FX NDFs are traded on a central limit order book (CLOB), delivering transparent price discovery and execution to all market participants including banks, non-banks, proprietary trading firms, institutional brokers, asset managers and buy-side institutions.  

“We are delighted to go live with this offering, which will provide local FX market participants with access to an expanded pool of NDF liquidity through a regulated exchange venue and a CLOB model that delivers efficient market structure and transparent, precise, consistent execution,” said Matt DellaRocca, head of liquidity and analytics, APAC at LMAX Exchange. 

“We look forward to supporting our global customers as we expand our FX offering for customers operating in the Asia Pacific region.” 

The launch will initially target Asia Pacific and will support increasing regional demand for FX NDF trading and access to institutional liquidity as well as enhanced FX market structure. 

LMAX Exchange’s FX NDF trading via Singapore and London will initially offer top Asian USD crosses including Indian Rupee (INR), South Korean Won (KRW), New Taiwan Dollar (TWD), Chinese Yuan (CNY), Indonesian Rupiah (IDR), Philippine Peso (PHP) and Malaysian Ringgit (MYR), with LATAM crosses expected to be offered at a later stage.  

“The launch of NDF trading by LMAX Exchange is a significant step forward in the growing importance of Singapore as a hub for FX price discovery,” said Paul Buttenmueller, global head of eFX trading at UBS. 

“This will improve market access to local pricing for Asian emerging market currencies, building liquidity and supporting volume growth of NDFs.”

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The development coincides with the latest enhancements applicable to the Northbound Swap Connect scheme, which commence today and are introduced by China Foreign Exchange Trade System (CFETS), Shanghai Clearing House, and OTC Clearing Hong Kong.

Bloomberg’s enhancements to its Swap Connect solution include new features that support IRS contracts with International Monetary Market (IMM) dates and the ability to offset existing contracts in global investors’ portfolios.

Swap Connect is the OTC derivatives trading link between Mainland China and Hong Kong, which allows market participants to trade IRS.

Read more: Swap Connect launches as first derivatives trading link between Mainland China and Hong Kong

The new acceptance of mainstream IMM dates-based IRS contracts will enable the scheme to further meet investors’ risk management needs, according to Bloomberg.

The offset services will also allow investors to compress eligible IRS contracts with equal and opposite economics at the clearing house, helping reduce capital costs and bolster trading.

HKEX’s subsidiary for clearing has also implemented enhancements to Swap Connect in partnership with CFERS and SHCH.

The enhancements will offer improved flexibility for international investors to manage RMB interest rate risk through China’s onshore interbank markets.

The new measures aim to enable more international institutional investors to manage interest rate risk on RMB bond investments with RMB interest rate swaps, which will ultimately help bolster Hong Kong’s competitiveness and supporting the internationalisation of RMB.

“As we reflect upon one year of Swap Connect in operation, it is only fitting that the first derivatives mutual market access scheme between Mainland China and Hong Kong is taking another significant step forward,” said Dahai Wang, head of Greater China at Bloomberg.

“We will continue to work closely with our partners to optimise this solution, empowering global investors and helping to deliver new levels of access to China’s onshore financial markets.”

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Yen Leng Ong

Specifically, trading will be provided via Northern Trust’s ITS, which is offered through the institutional brokerage part of the firm’s Banking and Markets segment, which also provides: FX, securities lending, and transition management services.

Yen Leng Ong, country executive, Southeast Asia at Northern Trust, explained that New Silk Road approached the firm looking for a solution “to help navigate cross-border trading challenges amidst a changing market structure in North America”.

Leng Ong added: “By enabling our client-centric solution approach, we determined that our ITS offering was the right fit to provide seamless integrated middle to back-office processing along with efficient trade execution. We look forward to continuing to build our relationship with New Silk Road to enhance their global trading needs.”

Read more: T+1 Industry Issues Forum 2024: Funding and FX challenges

The imminent shift to T+1 in the US is a clear catalyst for this move as Asia-based asset managers expect big challenges due to the time differences.

Northern Trust’s outsourced trading capability “combines worldwide trading expertise in equities and fixed income, exchange traded derivatives, futures and exchange traded funds (ETFs) across global markets,” claims the firm. In addition, the offering includes coverage from multiple trading locations.

Read more: Over half of asset managers do not believe that the T+1 shift will make US equities more attractive

“T+1 introduces significant market timing challenges to investors and managers in Singapore and New Silk Road has a strong understanding of the issues involved in this change,” said Gerard Walsh, global head of client solutions, banking and markets at Northern Trust.

“Northern Trust is very pleased to be working with New Silk Road to ensure their US dollar execution, trade matching, clearing, settlement process, and trade-related foreign exchange are managed as a single lifecycle.” 

In addition to the trading services, the firms confirmed that Northern Trust is set to continue to provide global custody services for New Silk Road funds – which it has done since 2011.

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In his new role, Bhat will be responsible for collaboration with front-to-back asset serving platform, State Street Alpha, as well as overseeing all business in the region.

Speaking to his appointment, Bhat said: “I am delighted to be joining CRD at a time of exceptional demand and excited to work closely with our Charles River and State Street Alpha clients, continuing our open partnership model that has been at the core of our success. 

“I look forward to working with my new colleagues to build on growth and expansion in the region.”

Prior to joining CRD, Bhat worked in various senior positions over 25 years, focused on sales, consulting, and engineering. Before joining FactSet, he spent a decade at Tata Consultancy Services.

Spiros Giannaros, chief executive and president of CRD highlighted that Bhat’s primary location in Singapore will allow him to work closely with the broader State Street organisation, specifically on go-to market initiatives and client servicing.

He also added: “In addition to his responsibilities for Charles River APAC, Vin will have client and commercial oversight of the Middle East and take on committee chair for a newly formed alpha APAC executive committee.” 

State Street confirmed plans to acquire buy-side front office services provider Charles River Development in a landmark $2.6 billion deal back in July 2018.

CRD’s flagship Investment Management Solution (IMS) automates front and middle office processes for buy-side firms in more than 40 countries, including 50 of the top 100 asset managers that in aggregate have more than $25 trillion in assets under management.

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