Total volume in 2004 increased 8.9% or 728.2 million contracts from the previous year. Futures-only volume reached 3.5 billion, up 16.3% from the previous year. Options trading grew more slowly, rising 4.6% to 5.4 billion contracts, mainly due to lower levels of trading in the Kospi 200 index option at the Korea Exchange. Excluding the Kospi futures and options contracts, overall global trading increased 17.3% to 6.4 billion contracts, with global futures trading up 15.6% to 3.5 billion contracts and global options trading up 19.4% to 2.9 billion contracts.
Volume rose in all sectors of the market, but the category with the greatest percentage increase was trading in foreign currencies. In 2004, volume in this category surged 35.4% to 105.4 million contracts worldwide. The largest contract in this category was the Bolsa de Mercadorias & Futuros’ U.S. Dollar futures contract, which was up 42.7% to 23.9 million contracts for the year. The Chicago Mercantile Exchange’s Euro FX future almost doubled, up 82.7% to 20.5 million contracts.
Individual equities trading rose 28.4% following a banner year in options on individual equities trading, which rose 27.4% to 1.9 billion contracts. Volume in these products at the International Securities Exchange, the top exchange worldwide for these products, climbed 47.3% to 360.8 million contracts for the year. Trading in individual equity options at Euronext.liffe, the world’s second-largest exchange for these products, grew 23.8% to reach 303.0 million. In single stock futures, trading rocketed 54.8% to 88.0 million contracts for the year. At the National Stock Exchange of India, the global leader in individual equity futures trading, volume in these products grew 72.3% to 44.1 million contracts.
Interest rate products maintained their lead as the world’s most active futures contracts. The CME’s 3-month Eurodollar future gained an additional 42.5% to 297.6 million contracts to remain the world’s largest futures contract, while Eurex’s Euro-Bund actually declined slightly, down 1.9% to 239.8 million contracts.
CME moved past Euronext.liffe in December to become the world’s third-largest global derivatives exchange. Bovespa and the Mexican Derivatives Exchange moved past the American Stock Exchange to numbers eight and nine on the top ten list, respectively.
For more information and statistics on global derivatives exchanges, please visit: http://www.futuresindustry.org/fimagazi-1929.asp?a=1026.
FIA is the national trade organization for the futures industry. Its membership includes more than 40 of the largest futures commission merchants. FIA estimates that its members are responsible for more than 90% of all public customer business executed on U.S. contract markets.
