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21.5 billion Exchange Traded Derivatives (ETD) contracts (9.3 billion options and 12.1 billion futures) were traded on exchanges worldwide in 2013 (against 21.1 billion in 2012). This modest increase (+2%) reverses the 2012 trend, when the total number of derivatives traded on-exchange decreased sharply (-15%). The increase was largely driven by interest rates and commodity derivatives (+13.5% and +24.4% respectively), whereas equity derivative contracts traded, which represent more than 50% of all contracts traded, decreased significantly (-7.6%). The number of commodity derivative contracts traded reached 4 billion, overtaking the number of interest rate contracts traded (3.3 billion).

Key themes included response to regulation, Moscow’s emergence as major financial center, and recovery of global exchange-traded derivatives The 31st annual World Federation of Exchanges/IOMA conference, devoted to the global derivatives market, concluded today in Moscow. The annual conference brings together both the leaders of the world's futures and options markets and global clearing houses, to discuss market and regulatory issues affecting the global derivatives landscape. This year the conference was hosted by Moscow Exchange, Russia’s main public markets trading platform.

Exchanges and clearinghouse leaders will assemble in Moscow next week for the World Federation of Exchanges’ (WFE) 31st annual derivatives conference, the International Options Market Association (IOMA). The conference, which will take place 26-28 May, will be a forum for the discussion of key regulatory issues affecting the global derivatives landscape. The WFE-IOMA conference will also partner again this year with the Global Association of Central Counterparties, (CCP12) to offer a half-day of combined sessions that will focus on the new challenges facing the clearing markets.

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).

BUSAN, S. KOREA (2 May, 2013) –Leaders of the many of the largest exchanges and clearinghouses will assemble 6-7 May for the annual derivatives conference of the World Federation of Exchanges (WFE) and the International Options Market Association (IOMA).  The 30th annual meeting will focus on market and regulatory issues currently changing the world’s derivatives landscape. 

PARIS (March 7, 2013) –For the first time since 2004, the number of Exchange Traded Derivatives (ETD) worldwide decreased in 2012 by 15% to 21 billion, according to statistics compiled by the World Federation of Exchanges (WFE).

The WFE, which annually conducts a survey on derivative markets, found that in 2012, 21 billion derivative contracts (11 billion futures and 10 billion options) were traded on exchanges worldwide - a decrease from the 25 billion traded in 2011. The full WFE report on derivatives markets will be available following the annual IOMA conference held this year in Busan, South Korea, from 5 to 8 May 2013.

(27 November 2012, PARIS) - The WFE representing 59 publicly regulated stock, futures, and options exchanges and associated clearinghouses, today called on international regulatory bodies to modify capital standards to appropriately reflect the liquidity and efficiency of exchange traded derivative (ETD) markets. In a letter to the Financial Stability Board and other policy organizations, WFE encouraged global standard setting bodies to demonstrate continued support for the G20 commitments to bring greater transparency and central clearing to derivative markets by ensuring that the costs of ETD markets are not unnecessarily increased. 

The WFE respectfully requests global standard setters to eliminate the 5-day margin period of risk banking capital standard for exchange traded derivatives and demonstrate international support for the more appropriate 1 to 2-day standard for the highly liquid, transparent, and efficient exchange traded derivative markets.  This standard should apply across all methods (IMM, CEM and Standardised approach) permitted under the Basel framework to compute counterparty credit risk exposure for ETDs. Such action by global standard setters will be instrumental in advancing the G20’s commitment to bring increased transparency and the safety and soundness of central clearing to the global derivatives market and broader financial system.

Paris (26 September 2012) –Leaders from the World Federation of Exchanges (WFE) have re-emphasized their support of regulatory action in the global derivatives market on the occasion of the publication of a new study commissioned by the WFE to examine the state of over-the-counter (OTC) and exchange-traded derivatives.  The report describes how regulatory reform is resulting in significant shifts in product selection across the global risk transfer market.

(Paris, 18 September 2012) The World Federation of Exchanges (WFE) announced today that the recipient of the WFE Award for Excellence this year will be Dr. Richard Sandor, chairman and CEO of Environmental Financial Products LLC (EFP).   Dr. Sandor was selected for this Award in recognition of his work at the epicenter of environmental and financial markets for more than four decades.

 

PARIS (12 April, 2012) – Global leaders of derivatives exchanges and clearing houses will assemble 16-17 April for the 29th IOMA Conference, the annual derivatives Conference hosted by the World Federation of Exchanges (WFE), to focus on the commercial and technological developments impacting derivatives markets. The conference also introduces the full annual IOMA survey on derivatives market statistics. The preliminary findings released on March 1, highlighted that 25 billion derivative contracts were traded on exchanges worldwide in 2011 - an increase from the 22 billion traded in 2010. Between 2006 and 2011, the number of derivative contracts traded on exchange has more than doubled. While last year’s growth rate (+12%) remains high, it is lower than the one observed in 2010 (+25%).

PARIS (March 1, 2012) –Exchange Traded Derivatives (ETD) worldwide increased in 2011, according to statistics compiled by the World Federation of Exchanges (WFE). The WFE, which annually conducts a survey on derivative markets, found that in 2011, more than 24 billion derivative contracts (11.9 billion futures and 12.9 billion options) were traded on exchanges worldwide - an increase from the 22 billion traded in 2010. Between 2006 and 2011, the number of traded derivative contracts has more than doubled.

(12 October 2011, Johannesburg) Leaders from more than 60 of the world’s foremost exchanges gathered in Johannesburg, South Africa, this week for the 51st General Assembly and Annual Meeting of the World Federation of Exchanges (WFE), the association of regulated stock, futures, and options exchanges. WFE develops and promotes high regulatory standards in markets to assure their transparency, fairness, and certainty of execution.

Paris (July 21, 2011) – The World Federation of Exchanges (WFE) today released the half-year trading figures for regulated markets worldwide. Strong growth was registered in the market capitalization of stock exchanges, a measure of the total value of listed companies. Exchange-traded futures and options registered higher volumes in most asset classes. The complete report may be viewed here:

PARIS (March 7, 2011) – Trading in derivatives contracts on regulated exchanges worldwide surged to the highest levels in nearly a decade in 2010, according to statistics compiled by the World Federation of Exchanges (WFE). More than 22.4 billion derivative contracts were traded on exchanges worldwide in 2010 (11.2 billion futures and 11.1 billion options) against 17.8 billion in 2009.

The report, “The Global Risk Transfer Market: Developments in OTC and Exchange-Traded Derivatives,” is the work of the TABB Group, a financial markets research and advisory firm. The study was commissioned by the WFE to provide a detailed and unprecedented comparative analysis of OTC and exchange-traded derivative markets with a focus on market size, trade costs and the anticipated impacts of current regulatory reforms.

Paris (6 December 2010) –Leaders from the World Federation of Exchanges (WFE) expressed concern about continued high risk in today’s the over-the-counter (OTC) derivatives market, and costs to the banking sector necessary to bridge an estimate $2 trillion shortfall for current market exposure.

Paris (29 November 2010) - The World Federation of Exchanges (WFE) and the International Options Market Association (IOMA) have submitted a public comment letter to U.S. Treasury Secretary Timothy F. Geithner urging the Treasury Department not to exempt over-the-counter (OTC) foreign exchange (FX) swaps and FX forwards from mandatory clearing and execution requirements that are imposed on other standardized derivatives products under the recently enacted Dodd-Frank Act.

NEW YORK (April 19, 2010) – Leaders of the derivatives exchanges and clearinghouse members of the WFE who have gathered this week for the annual IOMA meeting, today issued a call for coordination of international regulatory reform that will foster additional transparency and more consequential risk management in off-exchange markets.

Panels were: IOMA 2006 Survey, New Products Roundtable, Corporate Actions Task Force, Options Market Surveillance, Briefing on Algo Trading, Business Models in Clearing, Cross Border Regulation, Corporate Actions Task Force - Part I, Keys to success in developing a derivatives market, Corporate Actions Task Force - Part II

panels were: clearing house briefing, risk management and OTC clearing, technology trends, trading, IOMA 2007 survey, trends in exchange sector, new products, observations on the exchange industry by a capital markets essayist, developing derivatives markets in emerging economies, regulation briefing : best execution and remote members.

Focus

Wednesday, April 24, 2013

OTC equity derivatives in Europe: the status quo is no longer an option by David Sagnier, and Derivatives: struggling into the new era by Nick Ronalds

Wednesday, January 30, 2013

Exchange Focus: China Financial Futures Exchange , Dalian Commodity Exchange, and  Zhengzhou Commodity Exchange

Wednesday, October 31, 2012

The new global risk transfer market: transformation and the status quo

Highlights from the 52nd WFE General Assembly in Taipei

Sunday, April 29, 2012

This month in Focus, we look into Chinese capital markets, ahead of the IOSCO Annual Meeting in Beijing.

News Article

Next step in partnership between Moscow Exchange and Deutsche Börse Group/ Futures on EUR-RUB and USD-RUB to trade on Eurex

 

New product segment to start on 7 October 2013/ Futures and options on six of the most important currency pairs

Eurex to launch contracts based on Taiwan’s main index TAIEX in Taiwanese after hours/ TAIFEX to extend global reach of its main index options and index futures contracts

 

BM&FBOVESPA and the Santiago Stock Exchange (BCS) signed an agreement on April 12, 2012 that sets out the implementation of the Chilean derivatives market at the Santiago Stock Exchange. The agreement provides for the transfer of derivatives market knowledge from BM&FBOVESPA to the Chilean Exchange, encompassing products such as equity, interest rate and FX options and futures.

PARIS (12 April, 2012) – Global leaders of derivatives exchanges and clearing houses will assemble 16-17 April for the 29th IOMA Conference, the annual derivatives Conference hosted by the World Federation of Exchanges (WFE), to focus on the commercial and technological developments impacting derivatives markets. The conference also introduces the full annual IOMA survey on derivatives market statistics. The preliminary findings released on March 1, highlighted that 25 billion derivative contracts were traded on exchanges worldwide in 2011 - an increase from the 22 billion traded in 2010. Between 2006 and 2011, the number of derivative contracts traded on exchange has more than doubled. While last year’s growth rate (+12%) remains high, it is lower than the one observed in 2010 (+25%).

The Commodity Futures Trading Commission issued an Order granting CME Clearing Europe Limited registration as a derivatives clearing organization (DCO) pursuant to Section 5b of the Commodity Exchange Act (CEA).

On 1 September 2011, the European Energy Exchange (EEX) and the Eurex Exchange will introduce a new incentive model for the emissions market which aims at strengthening the EEX CO2 market in the competition with other trading platforms. The model targets the secondary market trading and is designed to increase the attractiveness of EEX prices (tight spreads) and hence liquidity of the markets.

The Committee on Payment and Settlement Systems and the Technical Committee of IOSCO have today released for comment a report on the OTC derivatives data that should be collected, stored and disseminated by trade repositories (TRs).

The committees support the view that TRs, by collecting such data centrally, would provide the authorities and the public with better and timely information. This would make markets more transparent, help to prevent market abuse, and promote financial stability.

Views Article

In a letter to the FSB and other policy organizations, WFE encouraged global standard setting bodies to demonstrate continued support for the G20  commitments to bring greater transparency and central clearing to derivative markets by ensuring that the costs of ETD markets are not unnecessarily increased. 

Leaders from the WFE have re-emphasized their support of regulatory action in the global derivatives market on the occasion of the publication of a new study commissioned by the WFE to examine the state of over-the-counter (OTC) and exchange-traded derivatives. The report describes how regulatory reform is resulting in significant shifts in product selection across the global risk transfer market.

Under the backdrop of the current post-crisis climate, the global economy has become significantly more complex as China itself has also witnessed an increasing number of uncertainties in the domestic macro-economy. In response to these challenges, China’s capital markets have shown their commitment to bringing further reform, innovation and opening up under the guideline of scientific outlook on development, achieving sound, stable and rapid growth through strengthened market regulation.

I. The Developments of China’s Capital Markets in Recent Years

China has seen an 9.3% average annual growth in GDP since 2008, laying solid economic ground work for the steady development of capital markets. In recent years, China’s capital markets have been experiencing rapid expansion in terms of financing scale, number of listed companies, investors and new investment products.

To all the superlatives that have been lavished on China one more deserves to be added: The unprecedented ascendancy of the country’s futures markets, which went from being a wild but obscure corner of the derivatives world to join the ranks of the world’s most actively traded futures. Last year the three most active agricultural futures in the world by contract volume were Chinese—the ZCE cotton and sugar contracts and SHFE rubber futures, which traded over 139 million, 128 million, and 104 million, respectively. Out of the top 10 agricultural contracts by volume, 7 were Chinese. The stock index futures contract, launched only two years ago, is second in the world by notional value after CME’s e-mini S&P 500 contract. From 2000 to 2010 contract volume on China’s three futures markets grew at slightly more than 50% annually, from 27 million in 2000 to 1,566 million in 2010. Last year saw the first decline in over a decade as a weak stock market plus measures by the authorities to discourage excessive speculation caused a painful 32.7% contraction in volume. Still, even allowing for the smaller size of Chinese contracts, the performance of China’s futures markets over the past decade has been stunning. But the story has just begun.

Keynote address by Dr. Subir Gokarn, Deputy Governor, Reserve Bank of India at the International Options Market Association, World Federation of Exchanges Annual Conference organised by the National Stock Exchange at Mumbai on May 4, 2011

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If anyone in Chicago in the 1960s had suggested that within a few decades the city would establish itself as an international financial centre, they would have been laughed out of town. To be sure, Chicago was to some degree a centre of money management, a banking hub for the US Midwest. It was also a town whose biggest markets had international significance: the settlement prices for corn, oats, wheat and soybean futures at the Chicago Board of Trade, the world’s biggest futures market, set prices for the whole world. But agricultural commodities were simply not part of mainstream finance. Wall Street was largely indifferent to futures trading, which was looked at as an exclusive domain of farmers and industrial food producers.

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Many central banks around the globe had to take active and aggressive measures to protect their local financial markets and economy during the recent financial turmoil. Thus, interest rates were reduced and quantitative easing of monetary policy brought liquidity back to the market. Fiscal spending was also augmented to stimulate demand, adding more funds available to the market.

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The global derivatives market is a main pillar of the international financial system and the economy as a whole. Today, businesses around the world use derivatives to effectively hedge risks and reduce uncertainty about future prices. Derivatives contribute to economic growth and increase the efficiency of markets by improving price discovery for assets.

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The financial crisis brought over-the-counter (OTC) derivatives to the forefront of regulatory attention. The default of Lehman Brothers, the near collapse of Bear Stearns and the bailout of AIG highlighted to all involved the significant role played by OTC products. Since then, regulators on both sides of the Atlantic have begun to look at how the derivatives market, or “weapons of mass destruction” as they have fashionably come to be known, can made safer. Although derivatives have been around for centuries, from the most basic contracts for the transfer of risk, the innovation within the sector has been fast and finding a solution to producing effective regulation from a policy-making point of view has not been easy.

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William Brodsky, Chairman and CEO of the CBOE and Chairman of the WFE, shares his views on OTC derivatives in the Financial Times’ "Trading Room"

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Derivatives provide a tool for investors to implement strategies for managing counterparty, market and liquidity risk. Order matching, i.e. the transfer of investors’ trading intentions into actual trades, price discovery and centralized clearing are at the heart of the production function of derivative markets. They thereby play a key role in market-based economies.

Event

Video

WFE Annual Meeting, Paris 2010 - Panel 2 Exchanges, clearers and OTC derivatives

WFE Annual Meeting, Paris 2010 - Panel 2 Exchanges, clearers and OTC derivatives summary