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emerging markets and liquidity

thanks newmoon for your post! I heard this Barclays trader giving a talk abt emerging market, which i got the impression as south east asia, India , China, and US!

lol!

 

Capital Flows will affect any Market be it BIG or small, established or emerging. Hedging instruements have got nothing to do with the liquidity of a Market - it is just an option that you could use to hedge against the futures if you so choose.

All Big Players are able to liquidate their positions thru The Market Makers at the right price, of course! The recent sell-off wasn't that bad as compared to that of  the Asian Currency Crisis of 1997.

 

that may be true to a certain extent... but I think the market in Singapore is gradually becoming more sophisticated.

SGX is growing agressively and looking into new financial instruments for trading and I think we'll see interesting times ahead.

 

emerging markets like singapore are illiquid in a bear phase and lack hedging instruments-so the fall is catastrophic as large positions cannot be unwound- so sell the rallies if there are any and come back when the mother of all bear markets is over.