Derivatives volumes back above 2011 levels

Derivatives volumes back above 2011 levels

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Derivatives trading volumes bounced back last year to register the highest annual figure since 2011.

Exchange body WFE says the number of contracts globally grew by 12% compared to 2014, reaching 23.4 billion in total split between 10.3 billion options and 13.1 billion futures. 

It was the first time that the total number of derivatives traded exceeded the peak volumes experienced in 2011. 

WFE suggested the numbers indicated a potential shift from over-the-counter markets dominated by banks.

“As the underlying trend in the use of financial markets continues to rise, these numbers are milestones on that road," said Nandini Sukumar, chief executive. 

Volume growth was strongest in Asia Pacific (up 36%) across currency, commodity and equity derivatives. 

WFE suggested that the uptick across the region might be the start of a longer-term trend.

In EMEA, overall volumes traded increased by 12% while there was a 1% decrease in the Americas mainly due to weaker stock options volumes. 

Currency and commodity derivatives saw the largest growth globally in 2015, with increases of 37% and 26%.

In commodity derivatives, more than 70% of trading was concentrated in three exchanges: the Dalian Commodity Exchange, the Shanghai Futures Exchange and the CME.

An uptick in currency contracts was driven by large increases at the National Stock Exchange of India, BSE India and the Moscow Exchange.

Equity derivatives remain the most actively traded asset class, although volumes have failed to reach their pre-2011 levels.

"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," added Sukumar.

"Exchanges and markets serve the real economy every day and that will only increase.” 


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