The rise of securities finance e-trading in Asia
04 March 2025
Following several years of small steps, Asia has recently experienced explosive growth in the adoption of electronic trading for repo, writes James Davis, head of APAC at GLMX
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GLMX has had an eye on growth in Asia since 2018, when we launched our international business. In 2018, we experienced minor client-driven flow, typically London-sourced, in Asia. From that modest beginning and especially since early 2023, GLMX business in the Asian region has experienced powerful growth across several dimensions.
Daily volumes (single-counted) in APAC-denominated collateral are over US$90 billion, up 1,100 per cent since January 2023, and daily balances are over US$200 billion. Clients are active across the region, and new names are going live frequently.
I joined GLMX in spring of 2024 to build out our first office in the region, in Singapore. This was a direct response to the rapid and highly organic growth GLMX experienced in Asia. With the office set up and a growing team in place, we are able to provide the support to existing clients that GLMX is known for. In addition, we are well-positioned to help support new clients with their journey into electronic trading.
Singapore was a natural choice for our initial regional base. We received regulatory approval as a Recognized Market Operator (RMO) from the Monetary Authority of Singapore (MAS) in July 2024. Singaporean authorities, regulators, and institutions have a proven track record of fostering innovation. Our ambition is to work with the market’s leading participants in dramatically innovative ways. Our new home in Singapore perfectly fits that bill and we look forward to seeing our clients both in the country and in the region.
My background is in rates sales at a number of banks in APAC covering clients across the region. This included covering repo, which was done entirely manually with all the resultant booking problems and operational risk. Upon joining GLMX and seeing its technology, my first impression was: “Where was this when I was in the market?” The team at GLMX clearly understands the perspective of repo traders and sales traders, and the years of investment in GLMX technology is immediately apparent.
The trend towards digitisation
As I have introduced myself (and in some cases re-introduced myself) to various people in the region, I have been struck by how much this community can benefit from electronic trading. Where there are global sell side institutions who have reaped the benefits in North America or Europe, the conversation tends to be around how we can work together to articulate the value to the buy side to help digitise more of their inbound flows. It is all about a better workflow and superior connectivity. In repo, that fundamentally better experience on the GLMX platform enables the sell side to support more clients more efficiently and effectively, which in turn supports buy side growth — a win for all parties. Superior workflow combined with a network that includes wide market coverage, creates an experience through which the entire repo market can work better.
GLMX’s reputation for better trading tools and a platform that connects trading counterparties in the protocols they need has led to new growth outside the repo market. Borrowers and lenders in the securities lending space have — dramatically more so than the repo market — been underserved by technology that materially improves their experience and results. Furthermore, the importance of a robust and secure platform has never been more important. GLMX has found a natural and eager client base in this market segment.
Working across short-end markets
Across securities finance, the market is asking for a nuanced platform that delivers engagement with clarity, and GLMX is happy to bring our tried and tested approach to bear. Such capability inevitably leads to a conversation with dealers about the convergence of short end markets. Many are looking for tools to optimise collateral use, balance sheet, and client engagement across repo, securities borrowing and lending (SBL), and, increasingly, total return swaps (TRS) markets.
With TRS, specifically within APAC, we see specific local factors driving demand. For example customers looking to gain economic exposure without having to deal with the operational burden of trading a physical security outright. This can occur in markets where there is mandatory buy-in for settlement fails, especially following the move to T+1 settlement and its acute impact on APAC time zones.
This space is on the verge of huge steps forward, and innovation-oriented market participants will reap the rewards.
For the buy side, there is more variation. For some, it is an extension of the well-established flow in many other offices already using GLMX technology. As we have expanded our liquidity network to include both new firms and regional desks, trading electronically has become a no-brainer.
For others for whom GLMX is new, the technology speaks to liquidity access, optimised workflows and of course the value of straight through processing. Buy side clients around the world have been able to set up and scale important trading strategies, enabled by the workflow and connectivity provided by GLMX.
One thing is clear across the repo market, especially in Asia — the ability to transact confidently requires more than just good tools and wide connectivity. In fast-moving rate environments and growing markets, traders need clear visibility into market levels, and the tools to analyse liquidity. GLMX helps dealers assertively engage with their clients in the trades they want to support, and helps the buy side see the market with clarity as they look to perform at scale. This is only possible with large trading volumes and a broad dealer network.
In terms of product coverage, we see in the Asian region a continuation of the dynamic that has already played out across other parts of the globe. The initial driver was very much the flow markets starting with Japan, as international buy side participants rapidly increased their engagement with the Japanese government bond (JGB) market. This was followed quickly by collateral from other major government issuers. Finally, GLMX’s offering for credit and emerging market repo allowed more niche business to be moved on platform, for the first time covering the full process from price discovery to negotiation to post-trade lifecycle management.
What to expect in 2025
This year, the growing GLMX team in Singapore is sharply focused on what has long driven our ongoing success. We demonstrate the GLMX value proposition to clients on all sides of the market, working hard to understand emerging client needs, and to deliver a fundamentally better trading platform to serve client growth. Our team follows up on this initial approach with a service model allowing clients to go from demo to live trading in as little as one week. I have never seen a business move this quickly with so much client support, and I am excited to continue that trend in 2025.
Asian markets for securities finance are looking at explosive growth this year. GLMX is investing heavily in Asia, and for good reason. Market participants are ready, and we are excited to serve their success with our powerful and ever-improving technology.
Daily volumes (single-counted) in APAC-denominated collateral are over US$90 billion, up 1,100 per cent since January 2023, and daily balances are over US$200 billion. Clients are active across the region, and new names are going live frequently.
I joined GLMX in spring of 2024 to build out our first office in the region, in Singapore. This was a direct response to the rapid and highly organic growth GLMX experienced in Asia. With the office set up and a growing team in place, we are able to provide the support to existing clients that GLMX is known for. In addition, we are well-positioned to help support new clients with their journey into electronic trading.
Singapore was a natural choice for our initial regional base. We received regulatory approval as a Recognized Market Operator (RMO) from the Monetary Authority of Singapore (MAS) in July 2024. Singaporean authorities, regulators, and institutions have a proven track record of fostering innovation. Our ambition is to work with the market’s leading participants in dramatically innovative ways. Our new home in Singapore perfectly fits that bill and we look forward to seeing our clients both in the country and in the region.
My background is in rates sales at a number of banks in APAC covering clients across the region. This included covering repo, which was done entirely manually with all the resultant booking problems and operational risk. Upon joining GLMX and seeing its technology, my first impression was: “Where was this when I was in the market?” The team at GLMX clearly understands the perspective of repo traders and sales traders, and the years of investment in GLMX technology is immediately apparent.
The trend towards digitisation
As I have introduced myself (and in some cases re-introduced myself) to various people in the region, I have been struck by how much this community can benefit from electronic trading. Where there are global sell side institutions who have reaped the benefits in North America or Europe, the conversation tends to be around how we can work together to articulate the value to the buy side to help digitise more of their inbound flows. It is all about a better workflow and superior connectivity. In repo, that fundamentally better experience on the GLMX platform enables the sell side to support more clients more efficiently and effectively, which in turn supports buy side growth — a win for all parties. Superior workflow combined with a network that includes wide market coverage, creates an experience through which the entire repo market can work better.
GLMX’s reputation for better trading tools and a platform that connects trading counterparties in the protocols they need has led to new growth outside the repo market. Borrowers and lenders in the securities lending space have — dramatically more so than the repo market — been underserved by technology that materially improves their experience and results. Furthermore, the importance of a robust and secure platform has never been more important. GLMX has found a natural and eager client base in this market segment.
Working across short-end markets
Across securities finance, the market is asking for a nuanced platform that delivers engagement with clarity, and GLMX is happy to bring our tried and tested approach to bear. Such capability inevitably leads to a conversation with dealers about the convergence of short end markets. Many are looking for tools to optimise collateral use, balance sheet, and client engagement across repo, securities borrowing and lending (SBL), and, increasingly, total return swaps (TRS) markets.
With TRS, specifically within APAC, we see specific local factors driving demand. For example customers looking to gain economic exposure without having to deal with the operational burden of trading a physical security outright. This can occur in markets where there is mandatory buy-in for settlement fails, especially following the move to T+1 settlement and its acute impact on APAC time zones.
This space is on the verge of huge steps forward, and innovation-oriented market participants will reap the rewards.
For the buy side, there is more variation. For some, it is an extension of the well-established flow in many other offices already using GLMX technology. As we have expanded our liquidity network to include both new firms and regional desks, trading electronically has become a no-brainer.
For others for whom GLMX is new, the technology speaks to liquidity access, optimised workflows and of course the value of straight through processing. Buy side clients around the world have been able to set up and scale important trading strategies, enabled by the workflow and connectivity provided by GLMX.
One thing is clear across the repo market, especially in Asia — the ability to transact confidently requires more than just good tools and wide connectivity. In fast-moving rate environments and growing markets, traders need clear visibility into market levels, and the tools to analyse liquidity. GLMX helps dealers assertively engage with their clients in the trades they want to support, and helps the buy side see the market with clarity as they look to perform at scale. This is only possible with large trading volumes and a broad dealer network.
In terms of product coverage, we see in the Asian region a continuation of the dynamic that has already played out across other parts of the globe. The initial driver was very much the flow markets starting with Japan, as international buy side participants rapidly increased their engagement with the Japanese government bond (JGB) market. This was followed quickly by collateral from other major government issuers. Finally, GLMX’s offering for credit and emerging market repo allowed more niche business to be moved on platform, for the first time covering the full process from price discovery to negotiation to post-trade lifecycle management.
What to expect in 2025
This year, the growing GLMX team in Singapore is sharply focused on what has long driven our ongoing success. We demonstrate the GLMX value proposition to clients on all sides of the market, working hard to understand emerging client needs, and to deliver a fundamentally better trading platform to serve client growth. Our team follows up on this initial approach with a service model allowing clients to go from demo to live trading in as little as one week. I have never seen a business move this quickly with so much client support, and I am excited to continue that trend in 2025.
Asian markets for securities finance are looking at explosive growth this year. GLMX is investing heavily in Asia, and for good reason. Market participants are ready, and we are excited to serve their success with our powerful and ever-improving technology.
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