On Wednesday, another 2012 year in review had been released and this time it was by the World Federation of Exchanges? (WFE). In it diverse annual survey of global markets, it disclosed that for 2012, global market capitalization increased 15.1% but volume of all products traded on WFE member exchanges fell significantly.?
According to the worldwide?statistics?compiled by the WFE, the value of Electronic Order Book (EOB) shares trading fell 22.5%, and the number of derivative contracts traded on-exchange declined 20%.
H?seyin Erkan, CEO of the WFE said of the review in a press release, “We appreciate our members? commitment to helping us compile our Annual Market Statistics, as we believe it is important to offer a true, objective picture of the current state of on-exchange trading worldwide. Our 2012 Global Market Highlights offers the most comprehensive series of data covering a large range of exchanges? activities, allowing for a more detailed approach of markets.?
It includes a number of different product information but here’s a picture of 2012 derivatives:
- For the first time since 2004, the number of on-exchange equity derivatives contracts traded last year fell by 20.4% to 14.9 billion.
- The 21% decline in equity derivatives mirrors the fall in the value of cash equities; it can be explained by 2012’s large decline in volatility.?
- The volume of Interest Rate options and futures traded fell -17%. Factors unfavorable for interest rates derivatives such as low interest rates environments and neither economic growth nor credit expansion continue in some regions and may explain the trend.