March 29, 2017 / 4:49 PM / 10 months ago

Emerging markets debt trading rises to $5.167 trillion in 2016 -EMTA

NEW YORK, March 29 (Reuters) - Trading volume for emerging market debt rose 9 percent last year to $5.167 trillion, according to a survey of 45 leading investment and commercial banks in 90 emerging market countries.

The survey from EMTA, the emerging markets debt trading and investment industry trade association, found that debt trading volume fell in the fourth quarter of 2016 to $1.132 trillion.

That number was down 18 percent from trading during the third quarter of 2016 and 2 percent lower than trading in the fourth quarter of 2015.

EMTA said that emerging markets debt trading volume in 2015 was the lowest recorded since 2009.

The growth in 2016 was the result of “strong inflows, volatility related to global political events (Brexit, U.S. elections), and idiosyncratic market developments within emerging markets,” Hongtao Jiang, head of emerging market credit strategy at Deutsche Bank, said in a statement with the release.

He also noted that India and Argentina were the largest contributors to idiosyncratic country risk.

“However, this masks a multi-year declining trend in trading volumes as 2016 total turnover remains substantially lower than 2013 and 2014 levels,” he said, “reflecting the impact of tighter regulation across banks on their ability in providing liquidity.” (Reporting by Dion Rabouin; Editing by Grant McCool)

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