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WFE Focus April 2011
WFE sponsors FIA Exchange President and Chairmen Breakfast
From left to right: Ravi Narain (NSE of India), John Damgard (FIA), Larry Tabb (TABB Group), and Jorge Alegria (MexDer)

The WFE sponsored the “Exchange Presidents and Chairmen Breakfast” at the 36th Annual International Futures Industry Conference on 15 March 2011.

The Breakfast brings together the leaders of derivatives exchanges around the world. This year, the breakfast started with John Damgard, the President of FIA, delivering the opening speech, followed by remarks by Jorge Alegria, CEO of MexDer and Vice Chairman of IOMA.

Jorge Alegria updated the participants on IOMA and its upcoming annual conference in Mumbai. He also shared the recently published WFE statistics on exchange-traded derivatives: more than 22.4 billion derivative contracts were traded on exchanges worldwide in 2010 (11.2 billion futures and 11.1 billion options) against a total of 17.8 billion in 2009. The growth rate (+25%) is one of the highest observed since 2003. The number of futures traded increased faster (+35%) than options (+16%), according to WFE, which conducts the annual survey for the International Options Markets Association (IOMA). The provisional report will be presented at the annual IOMA conference, hosted by NSE of India in Mumbai from 1st to 4th May, and then made public afterwards.

Larry Tabb, the Founder and CEO of the TABB Group, gave a presentation on “reshaping the OTC derivatives markets”.  The highlights from his speech were:

• Derivatives are a significant aspect of Dodd-Frank / Wall Street Reform Bill

• Under Dodd-Frank, standardized swaps are matched by Swap Execution Platforms (SEF), centrally cleared, & centrally reported

• Exchanges and new players are beginning to build SEF platforms

• But Interdealers & existing platforms currently have widest product support

• Over-the-Counter Derivatives market is ~$2 trillion under-collateralized; however, the market will “only” need to immediately raise about $240 billion

 

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