Monday, April 18, 2016 1.44PM / Mondovisone
• Exchange traded derivatives volumes rose 12%.
• Equity derivatives retain top slot but currency and commodity derivatives show largest volume growth.
The World Federation of Exchanges, which represents more than 200 market infrastructure providers including exchanges and CCPs, today released the IOMA 2015 Derivatives Market Survey. The report was released at the WFE’s IOMA Post-Trade & Derivatives Conference hosted by Bursa Malaysia in Kuala Lumpur April 17-19.
This annual survey is conducted by WFE and is compiled from questionnaire responses supplied by exchanges and clearinghouses as well as data collected from exchange websites.
Highlights of the report are that derivatives volumes grew strongly in 2015, up 12% on 2014, with trading volumes exceeding 2011 levels for the first time. The Asia Pacific region was responsible for a large proportion of this growth, with volumes up 36% on 2014’s. Equity derivatives remain the most actively traded asset class, but currency and commodity derivatives experienced the largest volume growth in 2015 (up 37% and 26% respectively over 2014). Commodity futures were the most traded contract and overtook single stock options, which to date have been the most actively traded contract. Volumes in the “other derivatives” category (a general category for more exotic derivatives) were up 51%, though from a low base.
“Exchange traded derivatives showed solid growth in 2015 and volumes rose above 2011 levels for the first time,” said Nandini Sukumar, CEO of WFE. “As the underlying trend in the use of financial markets continues to rise, these numbers are milestones on that road. The trend in commodity futures comes during a volatile year for commodity markets and is a tangible use of financial markets for investors seeking to mitigate risk and find transparent prices. Exchanges and markets serve the real economy every day and that will only increase.”
“The growth in exchange traded currency derivatives is particularly interesting inasmuch as it represents a potential shift in volumes from the over-the-counter markets,” said Siobhan Cleary, WFE Head of Research and Public Policy. “Similarly, the growth in the Asia Pacific region may suggest the start of a longer-term trend.”
The 40-page report contains extensive information broken down by product lines (e.g. single stock options and futures; commodity options and futures) and includes comprehensive graphs on the number of product lines per exchange and the number of trading venues by product line. It also carries information on product composition over time by number of contracts traded, including a regional breakdown. The report also carries a detailed statistical digest by product line, region, and exchange.
View the full version of the report attached.