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Derivatives Market:
2007 was once again a record-breaking year for the derivatives market. The total turnover volume on all derivative instruments in 2007 amounted almost 10 million contracts – it was almost 48% more than in the whole 2006. The total turnover value in 2007 amounted nearly 661 billion PLN – almost 75% more than in 2006.
The average monthly number of transactions on all derivatives in 2007 amounted 256,240, that means a growth of 32% in comparison with the previous year. The average monthly number of orders on all derivatives amounted 3,675,637, that is a growth of about 46% in comparison with the year 2006.
Futures contracts on WIG20 index:
The monthly turnover volume on futures contracts on WIG20 index exceeded in August 2007 for the first time in the WSE history 1 million contracts. The total turnover volume on futures contracts on WIG20 index in 2007 increased by nearly 51% in relation to the whole 2006 and amounted 9.3 milion contracts.
Stock futures:
In November 2007 the turnover on stock futures reached the highest level in the whole WSE history – 22,115 contracts. In 2007 the turnover on stock futures exceeded the amount of 100 thousand contracts.
Currency futures contracts:
In November 2007 the WSE began a successful cooperation with currency futures contracts market maker. A significant growth of turnover was noticed. In the same month the level of 1,250 contracts was reached, already a month later it was more than 1,800 contracts.
Options:
The turnover volume on options in 2007 amounted nearly 400 thousand contracts (more than 22% higher than in 2006). Number of open interests at the end of the year 2007 was 142% higher than in the previous year.
Structured products market:
In 2007 the WSE won two new issuers of structured products: ERSTE Bank and Raiffeisen Centrobank (RCB) – both from Vienna, Austria. Currently on the WSE there are three structured products issuers – Deutsche Bank London with structured notes, ERSTE Bank and Raiffeisen Centrobank (RCB) offering structured certificates – together 12 series of products, including products having foreign indexes, basket of shares or commodities (brent crude oil, gold) as underlyings. Structured products are issued by financial institutions, mainly banks and brokerage houses. The issuer of structured products agrees to pay the buyer (investor) on maturity the settlement amount determined pursuant to a set formula. Based on the settlement formula, the holders of the instruments can monitor their present value.
Figure 1
Annual volume of trading (including block trades) in all derivative instruments since 1998 (million contracts).
 |
Table 1
Volume of trading (including block trades) in 2007 and the number of open positions at the end of 2007, by derivative instrument category.
|
|
turnover
volume |
open
interests |
|
WIG20
contracts |
9,330,506 |
50,159 |
|
mWIG40
contracts |
16,606 |
343 |
|
TechWIG
contracts |
8,687 |
31 |
|
Stock
contracts |
114,021 |
2,403 |
|
Currency
contracts |
6,101 |
494 |
|
WIG20 options |
399,113 |
11,181 |
|
WIG20 index
participation units |
22,258 |
6,099 |
