March 26, 2018 / 3:45 PM / a year ago

Emerging market debt trading fell 5 pct in 2017 -EMTA

NEW YORK, March 26 (Reuters) - Turnover in emerging market debt fell more than 5 percent in 2017 compared with the previous year, a survey released on Monday showed.

Emerging market debt trading reached $4.901 trillion last year, down 5.1 percent from the $5.167 trillion reported in 2016, according to a report by EMTA, the trade association for the emerging markets debt trading and investment industry.

“We think that lower uncertainty and lower volatility in global markets contributed to slightly lower asset turnover in 2017,” said Jane Brauer, director and EM sovereign strategist at Bank of America Merrill Lynch, in a statement from EMTA.

“Given the volatility and performance we have seen already in 2018, we expect an uptick in trading volume in the coming year,” she said.

Mexican instruments were the most frequently traded overall with US$699 billion in turnover, a 20.2 percent decline from the $876 billion reported in 2016. They were followed by Brazil, at $651 billion, and China, at $400 billion.

Local market instruments turned over $2.747 trillion, a 14.4 percent decrease from the $3.209 trillion in 2016.

Mexican debt instruments were the most frequently traded last year in local markets at $500 billion, EMTA said. Brazil, India, South Africa and China were also highly traded locally.

The survey includes debt instruments from over 90 emerging market countries as reported by 45 banks, asset managers and hedge funds, EMTA said. (Reporting by Rodrigo Campos; Editing by Dan Grebler)

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