In practice, exchange-traded bond derivatives markets encompass only bond futures and options. Over-the-counter (OTC) bilateral derivatives are not detailed here as their structures vary significantly.
Asian domestic bond markets do not actively use conventional dynamic funding and hedging strategies.
The scope and depth of funding and hedging activities vary throughout the region. For more detailed information, please refer to the individual market home pages.
A summary of hedging practices is contained in the table below.
Short selling debt securities—the selling of a security not owned by the seller that is completed through security borrowing—is allowed in some East Asian markets, including Hong Kong, China; Japan; Malaysia; Republic of Korea; Singapore; and Thailand. Other markets still need to develop rules governing short-selling transactions.
Information on short selling regulations in different markets in the region is summarized in the table below. For more details on short selling, please visit the individual market home pages.
Linked below is the site of the Pan Asia Securities Lending Association (PASLA), an association of firms that are active in the business of borrowing and/or lending securities in Asian markets.