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The Asia Derivatives Forum, the first of its kind in the region, was co- organised by the Hong Kong Monetary Authority (HKMA) and the International Swaps and Derivatives Association (ISDA).
In his opening address to the Forum, HKMA's Deputy Chief Executive, Mr David Carse, said: "With the increase in derivatives activities both domestically and globally, it is important for regulators to take active steps to keep themselves up to date with market and supervisory trends and to maintain a close dialogue."
According to the Co-chairman of ISDA (Hong Kong and South East Asia), Mr Quentin Hills, the use of derivatives will gain importance as financial markets in emerging countries in the region mature.
Of the seven largest derivatives markets in the world, three are in Asia - Japan, Singapore and Hong Kong.
A survey conducted by HKMA last year shows that the volume of outstanding foreign exchange and interest rate derivative contracts in Hong Kong as at the end of April 1995 amounted to over US$1,600 billion while the average daily turnover reached US$74 billion.
"The Asia Derivatives Forum underscores the importance of reconciling the proper role of market supervision with market participation and risk management," said Mr Hills.
"The significance of this forum is that regulators and market practitioners are sharing their knowledge and concerns to promote common goals."
Participants of the Forum include senior regulatory officials from Australia, Hong Kong, Indonesia, Japan, Korea, Malaysia, the Philippines, Singapore and Thailand as well as 10 representatives from ISDA who come mainly from leading banking institutions active in derivatives trading in Asia.
Among the topics discussed were client suitability and appropriateness, disclosure of derivatives activities to regulators and the public, factors affecting the development of the derivatives market and issues concerning the implementation of Basle proposals on market risk.
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