At present, capital markets are undergoing substantial changes:
- Regarding structural changes, an increase in the number of offshore investments and the globalization of companies, such as diversifying corporate operations towards overseas subsidiaries and outsourcing, are further accelerating the globalization of capital markets and closer integration of various financial markets.
- Regarding fund flows, amidst the global ultra-low interest rate environment is driving the flow of funds into higher-risk and lower-liquidity funds, increase in international tensions and geopolitical risks exacerbate the uncertainty in the global economic outlook.
- Furthermore, rapid progress of digitalization is having a significant impact on all capital markets and market participants. Financial institutions are being pressed to overhaul their business models due to progress in technology, such as AI, and in the utilization of data. The market landscape is being transformed as a result of the proliferation of algorithmic and high-speed trading. In addition, new products and transactions, such as crypto-assets, are emerging.
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