FOW First Half Derivatives Trading Analysis (Futures & Options World)

October 2014



Futures & Options World

  • Futures & Options World


Global futures and options fell by 14% in the first six months of the year against the same period last

In total across the 85 largest derivatives markets covered by FOW Data 9.7bn changed hands between January and June 2013 compared with 11.2bn the previous year.

The first half global figure is the lowest since 2009 when 8.2bn contracts were traded. The downward
turn in volumes has been global, with almost every major exchange in every major region outside China
and India reporting a fall in trading.

However, there are signs that volumes in some markets are slowly picking up, with sectors such as
short term interest rate, energy and metal derivatives beginning to rise in June. Uncertainty surrounds regulatory reform and persistently low volatility in part due to central bank rates in Europe and the US are seen as the key reasons behind the decline in volumes.

Slow trading across all asset classes hit the world’s largest exchanges: from CME, CBOT, CBOE and ICE in the US, to Eurex and Liffe in Europe, to HKEx and SGX in Asia. However China continued to buck the global trend as its nascent futures markets continue to launch new products. The Zhengzhou Commodity Exchange (ZCE) experienced a massive jump in agricultural futures
trading, while the Dalian Commodity Exchange’s (DCE) iron ore and polypropylene contracts
becoming two of the most dominant contracts in Asia.