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In 2013, the number of Exchange Traded Derivatives (ETD) worldwide increased by 3% to 22 billion contracts, according to statistics compiled by the World Federation of Exchanges (WFE).
The WFE, which annually conducts a survey on derivative markets, found that in 2013, 22 billion derivative contracts (12 billion futures and 10 billion options) were traded on exchanges worldwide – a 685 million increase above derivatives contracts traded in 2012. The complete WFE analysis of global derivatives markets will be available in May 2013.
Source: World Federation of Exchanges
Other highlights of the preliminary WFE derivatives report regarding exchange traded derivatives (ETD):
- Equity derivatives: The drop in equity derivatives (-5.3%) is mainly explained by the size changing of the KRX (Korea Exchange) KOSPI 200 contracts, the weight of which is very significant. The overall 2013 equity derivatives volume increased by 3.2% when those contracts are excluded from the statistics.
- Interest rate derivatives: The volume of Interest Rate options and futures traded increased significantly (+13%) after the sharp decline observed in 2012 (-15%). Both Short Term and Long Term segments experienced vivid growth.
- Currency derivatives: Currency derivatives increased in volume by 2.2% in 2013.
- Commodity derivatives: Commodity derivatives (+23%) saw the greatest increase in volume in 2013, largely as a result of two major factors: 1.) the transfer of cleared OTC energy swaps to futures in the United States by the InterContinental Exchange (ICE) in 2012 in anticipation of the final Dodd-Frank regulatory requirements, and 2.) the continuing sharp increase in volume at Mainland Chinese Exchanges (+40%). The United States and Mainland China accounted for 79% of the global volumes in 2013.
- Other derivatives: The “other derivatives” category comprises a wide range of products including Volatility Index options, Exotic options and futures, REIT derivatives, Dividend and Dividend Index derivatives or CFDs. Volumes in this category increased sharply (+38.5%) in 2013, highlighting the ongoing innovation in derivatives offered by Exchanges.
Volume and Growth Rate of Derivative Contracts Traded on Regulated Exchanges
(million contracts)
|
2013 |
2012 |
2013/2012 |
|
|
Single Stock Options |
4,074 |
3,990 |
2.1% |
|
Single Stock Futures |
947 |
1,024 |
-7.5% |
|
Stock Index Options |
2,780 |
3,637 |
-23.6% |
|
Stock Index Futures |
2,333 |
2,243 |
4.0% |
|
ETF Options |
1,482 |
1,375 |
7.8% |
|
ETF Futures |
0 |
0 |
-3.8% |
|
Total Equity |
11,617 |
12,270 |
-5.3% |
|
STIR Options |
348 |
379 |
-8.1% |
|
STIR Futures |
1,437 |
1,224 |
17.4% |
|
LTIR Options |
211 |
171 |
23.1% |
|
LTIR Futures |
1,335 |
1,161 |
15.0% |
|
Total Interest Rate |
3,330 |
2,934 |
13.5% |
|
Currency Options |
403 |
288 |
40.1% |
|
Currency Futures |
2,081 |
2,143 |
-2.9% |
|
Total Currency |
2,485 |
2,431 |
2.2% |
|
Commodity Options |
224 |
192 |
16.5% |
|
Commodity Futures |
3,776 |
3,051 |
23.8% |
|
Other Commodity Derivatives |
1 |
0 |
113.3% |
|
Total Commodity |
4,001 |
3,243 |
23.3% |
|
Other Options |
188 |
116 |
61.5% |
|
Other Futures |
180 |
121 |
48.9% |
|
Other Derivatives |
102 |
102 |
0.0% |
|
Total Other derivatives |
469 |
339 |
38.5% |
|
Grand Total |
21,902 |
21,217 |
3.2% |
|
Americas |
9,820 |
8,955 |
9.7% |
|
Asia Pacific |
7,357 |
7,561 |
-2.7% |
|
Europe, Africa, Middle East |
4,725 |
4,701 |
0.5% |
|
Grand Total |
21,902 |
21,217 |
3.2% |
Source: WFE IOMA Survey – Including OTC trades registered on the exchanges
Excluding Kospi 200 options, the highest increase in exchange traded derivatives volume in 2013 was observed in Asia Pacific region (+13.2%), followed by Americas (+9.7%) and Europe, Africa, and Middle East (+0.5%).
