On 20 April 2017, the WFE published its annual report into the global derivatives market.
Highlights of the report are as follows:
- Derivatives volumes continued to grow in 2016 - increasing by 2.2% on 2015 - reaching a total number of 24.9 billion derivatives contracts.
- This was made up of 9.4 billion options (38%) and 15.5 billion futures (62%) traded.
- Growth was driven by volumes traded in the Americas (up 6.7%, and accounting for 41% of total volumes traded), with increases across stock index futures, interest rate, currency and commodity derivatives.
- In a reversal of the trend observed in 2015, the Asia-Pacific region (36% of the total volume), saw a decline of 5.5% in volumes traded vs 2015. This was mainly due to the decrease in volumes of single stock derivatives and stock index derivatives, whilst volumes of commodity derivatives grew by 27%.
- In the EMEA region (23% of the total), volumes rose by 7.8% on 2015, driven by stock index futures, interest rate and commodity derivatives.
- There were volume increases in all product lines, except equity derivatives and ‘other derivatives’ such as REIT derivatives and CFDs, (declines of 11% and 1.1% respectively vs 2015).
- Commodity derivatives volumes - the most actively traded contract type in both 2016 and 2015 - grew by 27.5%.
- Currency derivatives also continued strong volume growth, up 10.4% on 2015.
- Finally, interest rate derivatives were up 5.5% in 2016, a reversal of the declines seen in 2014 and 2015.
Please click here to read the IOMA derivatives report in full. Forty-seven exchanges responded to the 2016 survey, a mixture of WFE members, affiliates and other exchanges that voluntarily submit data.