According to the World Federation of Exchanges (WFE), for the first time since 2004, the number of exchange-traded derivatives (ETD) worldwide fell in 2012 by 15% to 21 billion. ?
Other highlights of the preliminary WFE derivatives report for ETDs included the following:
Equity derivatives
- The equity derivatives fall (-19%) mirrors the decline in the value of cash equities. It is likely explained by the significant 2012 decrease in volatility.
- Another factor is the size change of the KRX (Korea Exchange) KOSPI 200 contracts which carries significant weight.When those contracts are excluded from the statistics, the decrease becomes less pronounced (-7.5%).
Commodity derivatives
- This was that only segment that saw an increase in 2012 (+19%). It overcame the interest rate and the currency derivatives markets in terms of the number of traded contracts.
- The volume increase partially came from the Mainland Chinese Exchanges that experienced a 34% increase; this represented 41% of the global volumes in 2012.
?Volume and Growth Rate of Derivative Contracts Traded on Regulated Exchanges (million contracts) year-over-year (2012 to 2011)
Single Stock Options: -1.7%
Single Stock Futures: -8.7%
Stock Index Options: -36.5%
Stock Index Futures:-14.4
ETF Options:-19.3
Total Equity:-19.4%
The full WFE report on derivatives markets will be available after the annual?IOMA?conference held in Busan, South Korea from May 5 to 8, 2013.