Asia's market share of derivatives transactions has surpassed that of North American for the first time. That means Asia didn't even need the U.S.'s new intensive regulation on its financial industry to take effect to achieve this feat. The market's anticipation of the new rules paired with the region's rapid growth was enough. Even before the summer's aggressive Dodd-Frank financial regulation bill was signed, Asia's derivatives business had exceeded that in North America. Jonathan Burgos from Bloomberg reports:
Derivatives contracts traded in Asia-Pacific accounted for 38 percent of the global total in the six months to June, according to data from the Washington-based Futures Industry Association. That compares with 33 percent in North America, it said.
Once U.S. banks have to begin living under the strict new rules surrounding derivatives imposed by the Dodd-Frank bill, we can expect Asia's market share to grow even more, as the U.S. share declines. It's pretty clear that Asian banks are ready to pick up any derivatives transactions lost by U.S. banks.
Read the full story at Bloomberg.