Japanese progress stirs up international interest

After years with little technological or regulatory progress left Japanese exchanges well behind their competitors internationally, regional competition has stirred Asia’s sleeping giant into action. International firms say interest in trading Japanese products has stepped up, and with more developments in the pipeline – including possible exchange mergers – Japan now looks better placed than it has done for a decade to become a global futures and options trading hub. Japan has suffered in recent years because its regulatory structure restricted overseas firms’ access to its markets, while technology that was market leading in the late 1990s has been overtaken elsewhere in the world in recent years. Although its re-emergence has begun, market participants say there are still hurdles to overcome. They are, however, impressed by Japan’s intent.“Japan is still lagging behind in terms of technology and regulatory structure, and in its understanding of the needs of international liquidity pools,”...