Power plays from the fringe: East Asian responses to derivatives regulatory reform

Implementation of global derivatives reforms and the extraterritorial application of US and EU regulations in East Asia have generated political interplays unfolded at inter-state and domestic levels. Leading jurisdictions such as Japan, Singapore, and Hong Kong have exercised "power-as-autonomy" in an attempt to push back and delay the reform agendas spearheaded by global standard-setting bodies and the leading powers. Through leveraging the influence of Asian-based foreign dealers and exploiting the transatlantic disagreements, the Asian authorities have gained some rule-making autonomy in introducing derivatives reforms in local markets. This, however, was also driven by a competitive dynamic between individual Asian jurisdictions to promote the growth of domestic derivatives markets, which experienced dramatic growth in the post-crisis years. This resulted in market rules that do not reconcile and are somewhat inconsistent with each other, making the Asian regulatory landscape more uneven and fragmented along jurisdictional lines. Copyright © 2018 Oxford University Press. All rights reserved.