Launching in APAC: Comparing Asia’s Major Exchanges

The Asia-Pacific (APAC) region represents a significant opportunity for global trading firms, with some of the world’s largest and most active equities and derivatives markets. From established financial hubs such as Japan, Hong Kong, Singapore, and Australia to rapidly evolving markets in India, South Korea, and Taiwan, the region offers diverse sources of liquidity and opportunities for expansion.

However, APAC is far from a single, unified market. Each country has its own exchange structures, trading hours, regulatory requirements, and market access considerations. As trading activity expands across the region, understanding these differences is increasingly important for firms looking to access new markets while managing the complexity of their market data infrastructure.

For firms considering entry into APAC or expanding an existing presence, understanding how the region’s major exchanges compete, connect, and complement one another is an important first step.

Table 1. 2025 full-year figures, USD

Financial Region	Total Market Capitalization (in trillions)a	Exchange-traded Derivatives Volume ( in billion contracts) b	Fund Assets Under Management (in trillions)c
APAC	50.5	75.5	38.4
EMEA	24.9	–	33.3
The Americas	72.6	35.89	71.8

The APAC region covers dozens of countries, but global firms tend to focus on regional powerhouses such as Japan, Hong Kong, Singapore, and Australia before expanding to more complex emerging markets. No matter where in APAC a firm operates, its strategies will be affected by its largest market—China—whose partnerships and policies affect all its neighbors. However, evolving market structures, growing liquidity, and expanding trading opportunities across the region are also reshaping how global firms approach APAC.

Why Is China the Largest Financial Market in APAC?

China is APAC’s largest equity market, led by the Shanghai Stock Exchange (SSE) and Shenzhen Stock Exchange (SZSE). Together, these exchanges represent a significant share of the region’s market capitalization and offer access to thousands of publicly listed companies.

China’s exchanges have gradually expanded access to international investors, first through the Qualified Foreign Institutional Investor (QFII and RQFII) programs and later through Stock Connect. The Shanghai-Hong Kong and Shenzhen-Hong Kong Stock Connect programs allow eligible international investors to trade mainland Chinese A-shares through the Hong Kong Exchanges and Clearing (HKEX). However, access is limited to eligible securities and remains subject to market-specific trading and regulatory requirements.

Both Shanghai and Shenzhen offer co-location infrastructure, but China’s regulatory environment presents additional considerations for high-frequency and algorithmic trading firms. New program trading rules introduced in 2025 and 2026 strengthened reporting requirements and oversight of high-frequency trading activity, including for international investors accessing mainland equities through Stock Connect.

For many international firms, Hong Kong remains an important gateway to mainland Chinese equities. Its established financial infrastructure and Stock Connect relationships provide access to Chinese liquidity while positioning Hong Kong as a major hub for trading across the broader APAC region.

How Do Mature APAC Markets Support Global Trading?

Exchanges in Hong Kong, Japan, Singapore, and Australia have established themselves as important gateways for global trading firms through advanced trading infrastructure, strategic partnerships, extended trading hours, and diverse financial products. While each market offers distinct advantages, all four provide opportunities for international investors seeking access to liquidity across the Asia-Pacific region.

Hong Kong

In addition to serving as a gateway to mainland China through Stock Connect, Hong Kong Exchanges and Clearing (HKEX) offers equities, index futures, options, and other derivatives products covering markets across Asia. Its international investor base, established financial infrastructure, and connectivity to mainland Chinese exchanges make Hong Kong an important entry point for global firms expanding into APAC.

Trading in Hong Kong is supported by low-latency co-location services and alternative liquidity sources, including broker-operated dark pools. Hong Kong’s stamp duty on share transfers also creates a distinction between equities and derivatives trading, with qualifying derivatives transactions generally exempt from the duty.

As regional trading activity evolves, HKEX continues to strengthen its role as a bridge between mainland China and international capital markets through expanded Stock Connect offerings, market infrastructure improvements, and new investment products.

Japan

Japan is one of APAC’s largest and most developed financial markets, led by Japan Exchange Group (JPX), which operates the Tokyo Stock Exchange (TSE) and Osaka Exchange (OSE). The TSE provides access to a broad range of Japanese equities and ETFs, while OSE is a major venue for derivatives trading.

Japan’s market structure has evolved considerably as alternative trading venues, including Japannext and Cboe Japan, have expanded opportunities for accessing liquidity outside traditional exchange hours. The Tokyo Stock Exchange also extended its cash equities trading session by 30 minutes in November 2024, reflecting efforts to improve market accessibility and trading opportunities.

JPX maintains international exchange relationships, including partnerships with Singapore Exchange (SGX) and the Shanghai Stock Exchange, supporting cross-border investment products and market access.

Japan also maintains specific regulatory requirements for high-frequency trading firms, including registration, risk management, and order reporting obligations. For international participants, understanding these requirements alongside Japan’s evolving liquidity landscape is an important consideration when establishing a trading presence.

Singapore

Although smaller than other established APAC equity markets, Singapore plays an important role as a regional financial hub, particularly in derivatives, foreign exchange, and commodities trading.

Singapore Exchange (SGX) maintains a broad network of international exchange relationships, supporting a diverse range of financial products, including equity index futures, currency derivatives, and commodity contracts. Its derivatives offerings provide international investors with exposure to markets across Asia, including China, Japan, and India.

Extended derivatives trading hours allow SGX participants to access Asian markets during portions of European and U.S. trading sessions, making Singapore an important location for firms managing positions across multiple time zones.

Singapore has also strengthened its position as a global foreign exchange trading hub, attracting international banks, electronic trading platforms, and liquidity providers. This combination of regional connectivity, derivatives liquidity, and financial infrastructure makes Singapore an important component of many global trading strategies.

Australia

Australia’s equities market is led by the Australian Securities Exchange (ASX), with competition from TMX Australia Exchange, formerly Cboe Australia, and Chi-X Australia. The presence of multiple trading venues provides additional sources of liquidity and execution options for firms trading Australian securities.

Both ASX and TMX Australia Exchange support trading in Australian equities, while alternative execution mechanisms, including midpoint and other non-displayed liquidity, contribute to the country’s evolving market structure. For firms seeking best execution, connectivity to multiple venues can be an important consideration.

Australia also benefits from significant domestic investment demand driven by its compulsory superannuation system. As of July 2025, employers are required to contribute 12% of eligible employee earnings to superannuation funds, supporting a substantial pool of retirement assets invested across domestic and international markets.

Australian exchanges also provide opportunities for accessing New Zealand’s smaller financial market. Many New Zealand companies maintain dual listings on ASX and New Zealand Exchange (NZX), creating additional opportunities for regional investment and trading.

For global firms, Australia’s established regulatory environment, developed capital markets, and connections to New Zealand make it an important market within a broader APAC trading strategy.

Navigating APAC’s Evolving Markets

From established financial centers to emerging trading hubs, APAC offers significant opportunities for firms looking to expand their global trading strategies. However, differences in market structure, trading hours, regulatory requirements, and connectivity can make accessing liquidity across the region increasingly complex.

As trading activity grows and liquidity spreads across more venues, firms need market data infrastructure that can support expansion without adding unnecessary operational complexity.

Looking to expand your trading presence in APAC? Download our Guide to APAC Markets to explore regional market dynamics, emerging opportunities, and the infrastructure considerations for accessing Asia-Pacific liquidity.