Competition from investment banks' liquidity pools and large Western exchanges have prompted Asian exchanges to work together. "The emergence of potential global platforms, such as NYSE Euronext, Nasdaq and OMX means there is a rising risk that small exchanges may be marginalized," said Hsieh Fu Hua, CEO of SGX. "However, more insidious is the challenge from off-exchange liquidity pools led by investment banks, and broker dealers, such as Bats, which has emerged from nowhere to become the third-largest equity-trading center in the U.S."

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