James Leong, chief executive officer, Grasshopper Asia
Asian markets face a pivotal year in 2025, shaped by three key dynamics: the continuing accumulation and deployment of wealth, uncertain geopolitical conditions including potential impacts from US policy shifts which may lead to volatility, and ongoing structural reforms across Asia’s diverse capital markets.
Asia remains a very dynamic region. While the regulatory landscape has been challenging in countries like China, South Korea and India, we are seeing tremendous wealth creation in markets such as India and Southeast Asia. From a capital markets perspective, Japan has offered the region valuable lessons in how to stimulate market activity through a package of measures and corporate governance reforms. Elsewhere in Asia, the capital markets emergence from a decade-long low interest rate environment has been slower. We will be looking closely at China, Hong Kong and Singapore as they find means to stimulate growth and investment in public markets.
As a growing Asian quantitative asset manager, our focus will be on Australia, India and Japan. We believe that caution and volatility will likely be the significant themes of 2025, but opportunities will be available for those who can navigate Asia’s intricacies.
Jon Hodges, head of trading and asset services APAC, FIS
The capital markets landscape is poised for significant shifts in 2025, driven by evolving investment strategies, regulatory developments, and the push for operational efficiencies. Across APAC, the convergence of buy- and sell-side demands is reshaping how market participants approach technology and service integration.
Private markets continue to be a standout growth area, with robust interest in Southeast Asia and Australia as the ongoing shift in capital provision from banks to non-banks continues. The increasing sophistication of private capital strategies reflects a broader trend toward democratising investments and enhancing access to diverse asset classes, including the fast-growing private credit market. Elsewhere, Japan is fostering growth in its asset management sector by encouraging individual savings and operational reforms among listed companies.
Operational scalability remains a priority, with institutions exploring business process outsourcing to meet cost-efficiency goals while navigating regulatory complexities. Around 75% of leaders from UK and Singapore view outsourced managed services as having a high impact on cost reduction, according to FIS’s 2024 Global Innovation Research. Meanwhile, technology-driven solutions, such as advanced securities matching platforms and portfolio management systems, are helping organisations streamline workflows and improve market connectivity.
As APAC’s capital markets evolve, the interplay between local nuances and global influences will continue to shape the competitive landscape. Success will depend on aligning technological advancements with client needs while adapting to the unique regulatory and market structures of the region.
Lee Bartholomew, global head of FIC ETD product design, Eurex
The outlook for European FIC volatility in 2025 depends on several factors that may cool or fuel further uncertainty. European rates volatility is set for further benign periods as rate cut cycles in the US and Europe reach their lows by mid-2025. This assertion requires a continued return of inflation to central bank targets and economies growing at on consensus paces with low and stable unemployment.
Potentially rising government debts, however, present upside risk for rates volatility, be it due to US tax cut extensions or infrastructure investments from various European sovereign issuers paired with growing political uncertainty there with early elections in Germany and most likely in France limiting effective policies.
Against this backdrop, I consider that credit is going to be an interesting space. We expect macro factors to be supportive of credit, and therefore, expect to see an acceleration in the use of credit derivatives.
Kerim Acanal, global head of emerging markets, Tradeweb
Emerging markets investors will have to navigate several uncertainties next year, from the threat of new trade tariffs under the Donald Trump presidency to mounting inflationary pressures, and questions around the Federal Reserve’s interest rate cutting path. There is also increasing geopolitical risk, such as the ongoing Russia and Ukraine conflict and the reignited Syria crisis. It is clear that financial markets will be anything but quiet next year, and it will be interesting to see the impact that these events will have on emerging markets participants.
However, despite the many unknowns, I would expect one theme to remain consistent, namely the role electronic trading can play in ensuring efficient risk transfer during times of heightened market stress. Being able to offer emerging markets investors a complete electronic trading toolkit covering all asset classes will be key, and at Tradeweb our goal is to continue to develop a host of trading protocols, functionalities and products that make trading more efficient and streamlined, while helping to further electronify our core emerging markets regions.
Duncan Higgins, chief executive officer, Sustainable Trading
In 2025, we predict a turning point for European capital markets: a move away from siloed thinking and towards greater collaboration to address shared challenges too. Historically, market participants have operated with a divisive mindset, prioritising rivalry over cooperation.
Yet, with subdued trading volumes, geopolitical divides following Brexit, and growing global competition, the industry can no longer afford to remain as fragmented. While various initiatives aim to improve markets, progress has been slow, hindered by these entrenched divisions. However, firms are beginning to recognise that collective action may be the only viable path to building more effective and resilient markets. By setting aside differences, market participants can work together to foster a stronger, more capable ecosystem; a better, more vibrant market benefits everyone.
Embracing a more collegiate approach doesn’t mean abandoning competition, firms can still differentiate. But in areas where cooperation unlocks mutual benefits, 2025 could be the year joint efforts take centre stage.
This shift mirrors the spirit of collective action already seen in other areas, such as sustainability, where progress relies on shared commitment to change. By working together, those active in European markets can secure a stronger future, fostering growth and resilience for the benefit of all stakeholders.