Asia Pacific is playing an increasingly important role in the global economy and is expected to contribute around 60% of global growth in both 2025 and 2026, according to the International Monetary Fund. Asian economies such as China, Japan and India now account for three of the top five countries in the World Bank’s global nominal GDP rankings.
The combination of the region’s ongoing economic importance, developing financial markets and regulatory environment is creating opportunities in derivatives, as the global market shifts its focus eastward.
Rising Derivative Demand
Asia Pacific accounted for the largest share of derivatives trading of any region during October 2025 at 62% of all futures and options traded globally during the month, with trading volumes in the region increasing by 4.5% month-on-month, according to the Futures Industry Association This regional momentum was also reflected at CME Group – global average daily volumes (ADV) hit their highest level for October on record at 26.3 million contracts, with ADV in Asia Pacific rising by a significant 29% year-on-year to 2 million contracts.
Growth in derivatives trading in Asia Pacific is being driven in part by its rising middle class. The number of middle-class consumers in the region has already overtaken the combined total for the U.S. and Europe, and it is projected to continue to grow to hit 3.5 billion by 2030, when it will account for 65% of the global total.
As retail investors become both more affluent and sophisticated, moving beyond savings accounts to diversified investment portfolios, many are looking for ways to manage the risks associated with interest rates, currency fluctuations and equity volatility. At the same time, the growing importance that Asia plays in the global economy has led to increased demand from institutions, both locally and internationally, to manage a wider range of risks. This rising demand is expected to continue to drive the development of the futures and options market over the next five to 10 years.
One area that reflects this rising demand is Asian consumers’ growing appetite for gold derivatives. Gold has long been favored by Asian investors, not only as a symbol of wealth, but also as a perceived safe-haven asset. Its appeal has grown as a combination of trade tensions, geopolitical conflicts and the outlook for the U.S. economy have contributed to increased global economic uncertainty. Gold has enjoyed a significant bull run, with prices rising by more than 50% in the past year and doubling in the past five years, to reach a record high of nearly $4,380 per ounce in October. In the second quarter of 2025, a third of CME Group Gold futures by volume were traded during Asian hours, up from around 25% historically, while Micro Gold futures volume rose to 42%.
China Continues to Embrace Derivatives Markets
The ongoing development of China’s derivatives market is a significant highlight in the Asia-Pacific derivatives industry. Over the past 15 years, China’s futures and options market has experienced robust growth, in terms of both product availability and investor access, as the market has developed in line with the real economy.
China’s regulators are continuing to open up the derivatives market to Qualified Foreign Investors (QFIs), helping to attract global capital, create robust price discovery mechanisms and support the internationalization of the renminbi. A series of announcements this year saw QFIs gain access to 23 new commodities contracts in March and a further 16 contracts across three major exchanges in June. In October, participation in on-exchange ETF options was opened to QFIs for hedging purposes, bringing the total number of tradeable futures and options products available to QFIs to more than 100.
Meanwhile, in May, the Shanghai Futures Exchange announced a consultation on a draft of proposals that would enable increased participation from overseas investors, including allowing them to use foreign currency as collateral for yuan-denominated trades and to trade directly with the exchange without having to go through an onshore intermediary. It is also looking at opening its domestic nickel futures contract to foreign investors.
China is also continuing to develop the regulatory framework for its futures market. On October 9, 2025, the China Securities Regulatory Commission’s Administrative Provisions on Program Trading in the Futures Market (Trial) was implemented. The provisions aim to enhance the regulation of program trading, standardize its development and maintain order in futures trading, and bring regulation in line with that governing the securities market.
Morgan Stanley became the second U.S. bank to have a futures operation in China after launching its service earlier this year, marking another significant development in the market.
In the coming decade, China’s futures market is not only expected to continue to develop, but it could also foster the growth of smaller, rapidly developing economies in the region, as China shares its professional expertise and its infrastructure projects strengthen connectivity with neighbouring countries.
Vietnam Introduces Reforms
Regulators in Vietnam are also taking steps to open its markets to foreign investors. A series of reforms in 2025 have included introducing a new stock market trading system to improve reliability and align it with global trading practices, removing pre-funding requirements for Foreign Institutional Investors and reforming benchmark interest rates. Amid these changes FTSE Russell has announced that it will upgrade Vietnam from Frontier to Secondary Emerging Market status, effective on September 21, 2026, subject to a review to ensure sufficient progress has been made in opening up the market to global brokers. These reforms are likely to increase market participation and in turn drive demand for derivative products.
A new Ministry of Finance circular came into effect in June 2025 to streamline the registration, custody, clearing and settlement of securities transactions, including derivatives. Meanwhile, a VN100 Index Futures contract was launched in October. The contract, which is the second equity index-based derivative product, covers 95% of the VN All Share Index’s market capitalization.
Looking Ahead
Asia’s growing importance on the global economic stage looks set to drive significant growth in its derivatives market. A combination of growing internal demand from an increasingly sophisticated institutional and retail investor base, combined with regulatory reforms to open up the region’s markets to foreign capital, could potentially contribute to both higher trading volumes and greater product innovation.
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