In this article we analyse the trends in ETF derivatives in 2021 compared to 2020. ETF derivatives include both options and futures contracts traded.
The number of ETF derivatives contracts traded in Q3 2021 was 989.42 million, which represented an 8.2% increase on Q2 2021 and a 6.4% decrease on Q3 2020. Options accounted for 99.98% of all ETF derivatives contracts traded, while futures only for 0.02%.
The year-to-date ETF derivatives volume was 3.09 billion, made up of 3.08 billion options and only 608,332 futures contracts. Due to the lack of data from other regions, we only see ETF futures traded in the APAC, while most of the options contracts in 2021 were traded in the Americas (2.16 billion), followed by APAC region (921.58 million). ETF derivatives were not traded in the EMEA region in 2021.
Quarter-on-quarter, in Q3 2021, the number of options contracts traded increased 8.3%, while futures dropped 23.3%. Year-on-year, in Q3 2021 both options and futures contracts declined 6.4% and 31.2%, respectively.
The decrease in the number of futures contracts traded in Q3 2021 compared to the previous quarter was due to the decline in the only region where they are traded (APAC).
The volumes of options in Q3 2021 relative to the previous quarter increased due to both regions where they are traded: the Americas (4%) and APAC (18%). Exchanges that performed well in Q3 2021 were: B3 - Brasil Bolsa Balcão (34.4%), Cboe Global Markets (9.3%), MIAX Exchange (10.4%), Nasdaq-US (2%), Hong Kong Exchange Group (72.4%), Shanghai Stock Exchange (18.6%) and Shenzhen Stock Exchange (9.9%).
Year-on-year, in Q3 2021 futures volumes declined in APAC by a significant 31.2%.
Figure 2: Number of ETF futures contracts traded between Jan 2020 – Oct 2021
Americas has the largest share of option contracts traded (67%), while the APAC accounts for the rest (33%).
Year-on-year, in Q3 2021 the decrease in options volumes was due to the Americas region (13.2%), while APAC rose 11.2%. Exchanges with a notable performance were: Bourse de Montreal (38.1%), B3 - Brasil Bolsa Balcão (2.2%), Cboe Global Markets (1.5%), MIAX Exchange Group (17.7%), Nasdaq – US (2.5%), Japan Exchange Group (31.1%) and Shanghai Stock Exchange (4.6%).
Figure 3: Number of ETF options contracts traded between Jan 2020 – Oct 2021
The number of ETF options and futures traded in each region where they are traded is illustrated in Figures 4-5.
Figure 4: Number of ETF options and futures contracts traded in the Americas between Jan 2019 – Oct 2021
Figure 5: Number of ETF options and futures contracts traded in APAC between Jan 2019 – Oct 2021
 Excludes NYSE from May-21 to present, Shanghai Stock Exchange from Jan-19 to Dec-19 and Shenzhen Stock Exchange from Jan-19 to Mar-21
 Excludes Bourse de Montreal from Dec-19 to present and Johannesburg Stock Exchange from Jun-19 to present