Emerging market liquidity faces capital charge crossroads
Hedge funds and market-makers need a more capital-efficient way to trade EM currencies, argues SGX exec
Emerging market (EM) currencies hold both promise and peril for hedge funds and market-makers alike. Despite their potential for lucrative returns, they are susceptible to changes in global risk appetite, as well as political and economic uncertainty, which leads to heightened volatility.
To safeguard against extreme losses, local governments have implemented various regulatory regimes designed to ensure financial stability while protecting their over-the-counter spot currencies from massive
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