Research on the development of derivatives’ market in Asia

Abstract

Due to developing economies and companies looking for ways to hedge their risks with profitable investments or insurance policies against loss, Asian countries trade a substantial volume of unregulated derivatives. More market stability may allow stricter controls on this developing industry, which would subsequently strengthen local economies. This paper conducts academic research on derivatives in Asia. Compared with previous literature, this study covers a wide variety of issues. It classifies these issues in light of the widely acknowledged functions that derivative markets provide and limit the evaluation to the most prestigious financial publications as well as those that focus on emerging markets or derivatives. The finding of this paper should help the futures traders, specifically in the Asia hedging market, to explore the possibilities in the market and mitigate the risk.