International Options Market Association (IOMA) Report

Transcription

International Options Market
Association (IOMA) Report
August 2010
2010 IOMA/IOCA
Annual Conference
program
2010 IOMA/IOCA
Annual Conference
highlights
2010 IOMA/IOCA
Annual Conference
list of participants
IOMA derivatives
market survey 2009
Member exchanges
IOMA was founded as an association of options markets and clearinghouses
around the world. Since 2002, it has been an affiliate of the World Federation of
Exchanges (WFE). As of 2010 IOMA’s membership includes:
Athens Derivatives Exchanges
Australian Securities Exchange
BM&FBOVESPA
Bolsa de Comercio de Buenos Aires
Bolsa de Comercio de Santiago
Bombay Stock Exchange
Borsa Italiana
Bourse de Montreal
Budapest Stock Exchange
Bursa Malaysia Derivatives
CME Group
Chicago Board Options Exchange
Eurex Frankfurt
Eurex Zurich
Hong Kong Exchanges and Clearing
IntercontinentalExchange
International Securities Exchange
Johannesburg Stock Exchange
Korea Exchange MEFF
Mercado Mexicano de Derivados
NASDAQ OMX
NASDAQ OMX PHLX
NYSE Euronext
NYSE Liffe
National Stock Exchange of India
New York Mercantile Exchange
Osaka Securities Exchange
Oslo Børs
Singapore Exchange
Taiwan Futures Exchange
Tel-Aviv Stock Exchange
Thailand Futures Exchange
Tokyo Stock Exchange
Warsaw Stock Exchange
Wiener Börse
Zhengzhou Commodity Exchange
Every effort has been made to ensure that the information in this survey is accurate at the time of printing, but the
Secretariat cannot accept responsibility for errors or omissions.
IOMA | August 2010 1
Contents
2 IOMA/IOCA in brief
3 2010 IOMA/IOCA Annual Conference program
6 IOMA Annual Conference highlights
7 Speakers’ biographies (A-Z)
19 List of participants
22 2009 Derivatives market survey
Special note: Due to the volcanic eruptions in Iceland sending ash over Europe, the IOMA/IOCA Conference program
was affected as some of the speakers could not travel to New York. The IOMA Board kindly stepped up to reorganize
the program where/when necessary. We have reprinted the program here as it was on the eve of the Conference, to
share the program ideas as they were intended to be developed.
2 IOMA | August 2010
IOMA/IOCA in brief
International Association of Options Exchanges and Clearing Houses (IOMA/IOCA)
IOMA was founded an association of options markets and clearinghouses around the world. It includes most of the major exchanges trading
options on equities, equity indexes, debt instruments, currencies and commodities. Since its affiliating with WFE in 2002, IOMA has widened
its scope to include futures and commodity trading.
2002-2008 Derivatives volume growth (billion contracts)
18
16
14
12
10
8
6
4
2
0
Options
2002
2003
2004
2005
Futures
2006
2007
2008
Total
Source: WFE
IOMA conducts the annual survey of options markets, and maintains a directory of IOMA members. Between annual meetings, a Board of
Directors consisting of eight members governs the association.
Membership
Membership in IOMA is open to regulated exchanges and clearinghouses that trade and clear options and futures contracts. Regulated futures
exchanges have also belonged and participated for years. New members are elected as part of the annual meeting. Membership in IOMA is
automatically included for those exchanges that are members of the WFE.
The International Options Clearing Association (IOCA) meets in conjunction with the IOMA annual meeting. IOCA is not a separate
organization; rather it is a section within IOMA that consists of the clearinghouses who are members of IOMA.
For more information visit http://www.world-exchanges.org/ioma
2010 IOMA/IOCA
Annual Conference
New York, 18-21 April
Event hosted by the US members of IOMA/IOCA.
Monday 19 April
Board of Directors meeting
Reserved for the IOMA Board of Directors
Opening the NASDAQ market
IOMA/IOCA Annual Conference opening
Welcome remarks, and IOMA/IOCA update
• Meyer S. Frucher, Vice Chairman, NASDAQ OMX
• Ravi Narain, Managing Director and Chief Executive Officer, NSE India, and IOMA Chairman (excused)
• Richard DuFour, Executive Vice President, CBOE, and IOMA Treasurer
• William Brodsky, Chairman and Chief Executive, CBOE, and WFE Chairman
IOCA panel 1
Risk management, OTC clearing and regulatory reform are the key topics. This first IOCA session sets the
scene as to what is happening, and how this fits with what used to be considered the “normal” business
developments of handling changing risk profiles, providing new services, all while managing to compete
with one another. Today, what messages are being received from regulators, academics, and clients, and
how are these to be interpreted?
• Chair: Michael Walinskas, Senior Vice President, Risk Management and Membership, OCC
• Dale Michaels, Managing Director, Credit & Risk Management, CME Group
• Thomas Book, Member of the Executive Board, Eurex Clearing AG
• Christopher Jones, Director, Head of Risk Management, LCH.Clearnet
• Garry O’Connor, CEO, International Derivatives Clearing Group
2009 IOMA survey results and the corresponding financial effects
Review of last year’s industry business, setting the baseline for where IOMA is now.
• Chair: Hugh Freedberg, Chairman NYSE Euronext Liffe and Former IOMA Chairman (excused)
• Didier Davydoff, President, IEM Finance (excused)
• Bernardo Mariano, Analyst, ERDesk
Indices and product development
Exchanges plan to extend their index futures and options businesses: some are trying to tie up with
exchanges in other regions to add offer to their local marketplaces, and to create global indices. What is
the state of play on the geographical spread beyond “local,” and does this practice grow the market? How
many new products pay off? What concerns do we have about cannibalization?
• Chair: Ravi Narain, Managing Director and Chief Executive Officer, NSE India, and IOMA Chairman
(excused)
• Rina Shafir, Senior Vice President, Trading & Clearing Dept., Tel-Aviv Stock Exchange
• Jacques der Megreditchian, Chairman of the Board of Directors, RTS Exchange
• Jae Seung Shim, Executive Director, Derivatives Market Division, Korea Exchange
Fast growing markets
What market segments and products are outpacing the rest, wherever they are in the world? What kinds
of products are likely to stay on a fast growth track? These are the fastest growing parts of the exchange
industry.
• Chair: Jorge Alegria, Chief Executive Officer, MexDer
• Scot Warren, Managing Director, Equity Index Products and Index Services, CME Group
• Rinjai Chaiyasut, Vice President, The Stock Exchange of Thailand
Tuesday 20 April
IOCA panel 2: Clearinghouses in the OTC space
A question and answer session on developing clearing services: for ICE, the strategy of using joint ventures;
for DTCC, an overview of the OTC warehouse; for CCP 12, the possibilities of regulatory changes; and for
Tokyo Stock Exchange, the perspective for its clearer to develop services in that marketplace.
• Chair: Marcus Zickwolff, Director, Eurex Operations, Chairman of CCP12 (excused)
• Stewart Macbeth, Managing Director, DTCC
• Takeshi Hirano, Head, Strategic Planning, Clearing and Settlement Department, Tokyo Stock Exchange
• Christopher S. Edmonds, President, ICE Trust
• Michael March, Director of Business Development, LCH.Clearnet Ltd.
Technology arms races and the corresponding changes in trading tools and techniques:
This panel will consider algo and high-frequency trading, as well as at derivative trading engines and the
needs of developing exchanges. The capabilities built up are remarkable; it is time for an assessment of the
IT side.
• Chair: Gary Katz, President & CEO, International Securities Exchange
• Tony Weeresinghe, Director, Global Development, London Stock Exchange Group; and Chief Executive
Officer, Millennium IT
• Edwin Marcial, Chief Technology Officer, IntercontinentalExchange
• Anna Ewing, Executive Vice President and Chief Information Officer, NASDAQ OMX
The exchange strategy after years of consolidation
The strategy session, taking stock of the directions in which the industry may be going.
• Chair: Joseph Gawronski, President, Rosenblatt Securities
• Thomas Callahan, Chief Executive Officer, NYSE Liffe US
• Kevin King, Executive Vice President, Head of Risk Management Division, Hong Kong Exchanges and
Clearing Ltd.
• Jeromee Johnson, Head of BATS Options Market
Wednesday 21 April
Welcome remarks by Robert Greifeld, CEO, NASDAQ OMX Group
Financial services reform
Industry leaders, together with regulators, will discuss the significance of potential regulation from an
international angle.
• Chair: William J. Brodsky, WFE Chairman
• Theodore Lubke, Senior Vice President, Bank Supervision Group, Federal Reserve Bank of New York
• Maria Velentza, Head of Unit G3 (Securities Markets) - DG Internal Market & Services, European
Commission
• Richard Ketchum, Chairman and CEO, FINRA
• Elizabeth K. King, Associate Director, Division of Trading & Markets, US Securities and Exchange
Commission (SEC)
Competing client constituencies
With many different types of firms interacting in the markets, what are the expectations and needs of
exchanges if the OTC exchange environments were to be rebalanced?
• Chair: John J. Lothian, President & CEO, John J. Lothian Company
• Todd Hohman, Managing Director, Quant Vol Trading, Goldman Sachs
• Mike Curcio, Executive Vice President, President, E*TRADE Securities
• Martin Mannion, Chief Operating Officer, Citadel Execution Services
How exchanges and clearers have operated through the crisis
A review of how the regulatory, legal and rule structures of exchanges enabled them to stay open since
mid-2007, unlike virtually any other market segment.
• Chair: Steven Sears, Senior Editor, Barron’s
• Eric Noll, Executive Vice President, Transaction Services, NASDAQ OMX
• Patrick Pearson Head of Financial Markets Infrastructure, European Commission (excused)
2010 IOMA/IOCA
Annual Conference highlights
The world’s credit market troubles began in early 2007, and
successive crises have moved on one by one to other parts of the
world’s financial system since. In sharp contrast to other actors,
derivatives exchanges and their associated clearers have offered the
financial community certainty of execution and transparency of
pricing.
The conference examined the business position of clearing
houses in this light, their usefulness for prudent speculation and
risk management. Risk profiles of market participants have been
changing, often rapidly and negatively, yet exchange trading and
clearing have functioned without significant disruption. Also, in
response to the ongoing crisis environment, this industry has been
responding by extending its range of services, including overthe-counter (OTC) trade reporting, bilateral clearing, and central
counterparty clearing for more kinds of contracts. More effort than
ever has been put into finding margin offsets to reduce costs to
customers.
Conference participants looked for a product roadmap: what are
different exchange and clearing house plans beyond credit default
swaps? How is clearability of these other instruments defined and
commonly understood? Indeed, what does “standardized” mean for
a contract? On systemic risk, what kinds of “meltdown” scenarios
are being contemplated, precisely in order to avoid them? Have
there been changes in minimum requirements for clearing house
membership in the course of the past three years? How does this
private-sector industry association view the prospect of public
authorities mandating clearing, and how easy a fit would this be
relative to the current accepted risk portfolios managed? The idea
of forced clearing of OTC contracts which may not be standardized
was a source of considerable unease, in fact; OTC works differently
and meets its own economic purposes. The two worlds do not easily
overlap.
audit trails. The self regulating organization (SRO) managers and
the speakers representing public authorities were in agreement
that whether the trading is taking place on- or off-exchange, more
transparency is needed and will be mandated.
The information technology front has been equally busy for
exchanges this past year as latency has fallen to near zero,
processing capacity has risen sharply, and above all the message
traffic for derivatives exchanges has exploded. There is in effect
something of an IT arms race taking place in the trading sector,
though as a result exchanges are able to offer very different kinds of
trading services to their customers. In fact, the closing panel session
was devoted to listening to different kinds of client constituencies to
hear more about their diverse needs, which have to be balanced out
against one another within the exchange space at any given point in
time. Each kind of client naturally puts its own interest forward, and
all must somehow be accommodated.
Given the monetary questions being raised by government economic
and financial support in the form of extraordinarily low interest rates
and nationalizations or very extensive guarantees being extended,
it was thought that futures and options on currencies and interest
rates traded on exchange would have a very bright future.
The conference also addressed the question of further exchange
consolidation: is it in the offering or will there be a pause after
several years of mergers and acquisitions in this sector?
Perhaps the key concluding question had to do with the need to
restore the good name of derivatives. The exchange-traded and
cleared products have been unfairly tarnished by the contracts
traded OTC, with all the economic and social damage they have
wrought.
Participants also addressed the question of global financial market
reform, for regulated marketplaces and for clearers. It was not
evident in April 2010 that there would in fact be effective global
coordination going forward; as one example, that very week the
United States Congress suddenly put financial questions on its
agenda at an accelerated pace, changing the calendar for everyone
else, too. Not addressing financial problems across the world on a
broadly comparable basis was a cause for further concern, as OTC
is precisely the area where the 2007 crisis began; coordination
is indispensable for minimizing future problems by reducing the
possibilities for regulatory gaps. IOMA leaders were therefore
especially pleased to share perspectives on these matters directly
with authorities from the United States and European Union.
Meanwhile, as this crisis has evolved, the self-regulatory organization
managers have had to look ever more closely at various kinds of
fraud issues cropping up, and how to identify them in the midst of
often heavy volumes, large price movements, and ever increasing
cross-border trading. More time has been spent examining the
financial stability of the broker-dealer communities. There is a
need for surveillance staff to be able to reconstruct more complex
Bob Greifeld addresses the conference participants the 2011 Annual
Conference will be hosted by NSE India on 1-4 May 2011. Included within his
remarks were the likelihood of U.S. financial reform passing in both houses of
Congress as well as a discussion of the latest SEC options pricing proposal.
Speakers’ biographies (A-Z)
Jorge Alegria
William J. Brodsky
Chief Executive Officer,
MexDer
Chairman & Chief Executive Officer, Chicago Board Options Exchange (CBOE)
Jorge Alegría is Chief Executive Officer of MexDer (Mexican
Derivatives Exchange) and he has recently been appointed as Head
of the Markets and Information Division of the Mexican Stock
Exchange. He previously served as CEO of ABN AMRO Securities
(Mexico) and as Executive Vice President at Scotiabank Inverlat.
With more than 24 years of experience in the financial sector, he
has also served as board member and held various positions at
major Mexican firms including: AMIB (Mexican Brokers Association),
ASIGNA (Clearing House), Impulsora del Fondo México (Mutual
Fund), and the Mexican Stock Exchange.
Mr. Alegría is also a professor at the ITAM (Instituto Tecnológico
Autónomo de México), focused on derivatives. He serves as
Chairman-elect of the International Options Markets Association
(IOMA).
Mr. Alegría earned a finance degree from the ITAM.
Thomas Book
Member of the Executive Board,
Eurex Clearing AG
Thomas Book is heading the Clearing, CCP & Strategy department of
Eurex and was appointed Member of the Executive Boards of Eurex
Frankfurt AG, Eurex Zürich AG and Eurex Clearing AG in December
2006. He has held a number of different leadership and project
management positions at Deutsche Börse and Eurex since joining
Deutsche Börse Group in October 1995.
Previous to his appointment he was in charge of Trading and
Clearing Market Development in cash and derivatives markets for
Deutsche Börse Group (December 2005 until December 2006) and
Head of Market Development Derivatives Markets, a post which he
held from October 2004 until November 2005.
From 2000 until 2004, Book worked as Senior Project Manager for
Strategic Planning. He has been involved in a number of strategic
projects at Eurex starting with the integration of DTB and SOFFEX
to form Eurex in 1998, up to the merger with the International
Securities Exchange that was completed in December 2007.
Book received a diploma in Business Administration at the University
of Münster in 1995. He completed a Ph. D. thesis on “Electronic
stock exchange trading and global markets” at the University of
Giessen in 2000, which was awarded the first prize of Paul Julius
Reuter Innovation Award in 2003.
William J. Brodsky is Chairman and Chief Executive Officer of the
Chicago Board options Exchange (CBOE). In October 2008, Brodsky
was the first leader of a derivatives exchange to be named Chairman
of the World federation of Exchanges (WFE). He previously served as
Vice Chairman of the WFE from 2007 to 2008. Brodsky’s election as
WFE Chairman marks the culmination of four decades of leadership
roles in the U.S. options, futures and securities markets.
As Chairman and CEO of CBOE since 1997, Brodsky has overseen
a period of tremendous growth and product innovation at the
exchange, as well as the successful transformation of CBOE’s
traditional open-outcry, market model into a world-class hybrid
trading system. He serves as the industry’s leading advocate in
shaping market policy and regulation, and is currently guiding CBOE
through demutualization from a membership organization to a forprofit stock corporation.
Prior to joining CBOE, Brodsky served for 15 years at Chicago
Mercantile Exchange (CME), where he oversaw the launch of
the CME Globex trading system and played a pivotal role in the
development and globalization of stock index futures. He joined CME
in 1982 as Executive Vice President and Chief Operating Officer and,
in 1985, was named President and Chief Executive Officer, a post he
held until joining CBOE in February 1997.
Brodsky began his career as an attorney in the securities industry
with the firm of Model, Roland and Company in 1968. In 1974, he
joined the American Stock Exchange (AMEX) where he became head
of options trading in 1976 and served as Executive Vice President for
operations between 1979 and 1982. He also served for seven years
as the AMEX representative on the board of The Options Clearing
Corporation. In 1994, the AMEX honored Brodsky for his role in the
development of its options programs.
Brodsky serves as a director of Integrys Energy Group, Inc, an S&P
500 company. He is a member of the Federal Reserve Bank of New
York’s International Advisory Committee, the Council on Foreign
Relations in New York City, and the Economic Club of Chicago. He
is also the former chairman of the International Options Markets
Association (IOMA).
He serves on the Kellogg School of Management Advisory Council,
as a trustee of Syracuse University and is a member of the Board
of Directors of Northwestern Memorial Hospital and chairs its
investment committee. Brodsky holds an A.B. degree and J.D. degree
from Syracuse University and is a member of the Bar in Illinois and
New York.
Thomas Callahan
Executive Vice President & Head of NYSE Liffe U.S., NYSE Euronext
Thomas F. Callahan is Executive Vice President and Head of NYSE
Liffe U.S., the U.S. futures exchange of NYSE Euronext.
Prior to joining NYS Euronext, Mr. Callahan was the Head of Global
Financial Futures and Options at Merrill Lynch where he was
responsible for global listed derivatives for debt, equity, FX and
commodity products.
Mr. Callahan held various leadership positions during his 15 year
tenure at Me Merrill Lynch, in both New York and London, including:
Head of Global Debt Financing, Co-Head of Global Prime Brokerage,
Head of European Vanilla Interest Rate Trading and Sales, Head of
Global Money Markets Trading, and Senior Trader in ML Government
Securities, Inc. Prior to that, Mr. Callahan worked for Prudential
Securities, where he began his career in 1992.
He is a 1991 graduate of Harvard University.
Michael J. Curcio
Executive Vice President & President, E*TRADE Securities
As President of E*TRADE Securities, Michael Curcio is responsible
for the strategic direction, customer relationships and ongoing
management of E*TRADE FINANCIAL’s core domestic retail
franchise—including the Company’s investing, trading and banking
solutions. With over 20 years’ experience in optimizing the customer
experience for financial firms, Mr. Curcio is focused on building
the retail business by attracting customer prospects, broadening
engagement with existing customers and improving E*TRADE’s
product line and service offerings. The work of Mr. Curcio and
his team helped E*TRADE close 2009 achieving the Company’s
highest level of trades for any year at 197,000 and record brokerage
accounts of 2.7 million.
Within the retail business, Mr. Curcio oversees:
• Customer relationship management (sales and service), including
continuing service enhancements and educational opportunities
• Development and management of retail products and services,
portfolio planning tools, services and guidance for every stage of a
customer’s life
• Advanced tools and services for equities, options and futures
trading for the Active Trader segment
• Corporate stock plan administration business, which serves 25
percent of S&P 500 companies and serves as an introductory
channel for retail brokerage and banking services
• E*TRADE Capital Markets, the company’s market making business
Mr. Curcio joined E*TRADE in 2002 after a 15-year tenure at TD
Waterhouse, where he last served as Executive Vice President,
Customer Relationship Management. He is former vice chairman
of the Philadelphia Stock Exchange Board of Governors. He serves
on the Board of Directors for Access Worldwide (AWW) and the
Jazz Foundation, and on the Northeastern Regional Board for
Operation Hope. Mr. Curcio holds a Bachelor’s degree in Business
Administration from State University of New York at Plattsburgh.
Didier Davydoff
President, IEM Finance
Founder of IEM-Finance and of the European Savings Institute
(Observatoire de l’Epargne Européenne - OEE) Didier Davydoff had
following functions:
• From 1981 to 1988, Associate Director at the Bank of France. His
duties included producing Financial Accounts.
• From 1988 to 1994, Director of Research and Market Regulation at
the COB (Commission des Opérations de Bourse)
• From 1994 to 1999, Director of Research and Strategy of Paris
Bourse. His duties included representing Paris Bourse on the Board of
STOXX Ltd (a joint venture of Dow Jones Company, the German, the
French and the Swiss stock exchanges)
Didier Davydoff is a member of the advisory panel of financial
services experts of the Committee on Economic and Monetary
Affairs of the European Parliament.
The European Savings Institute (Observatoire de l’Epargne
Européenne) is a not-for-profit association whose mission is to
research on savings in Europe. The European Savings Institute has
been working among others for the European Central Bank, the
European Commission, the OECD.
IEM-Finance is a financial consultancy specialized in market
organization, market regulation and financial innovation.
Richard DuFour
Executive Vice President, Chicago Board
Options Exchange (CBOE)
Richard DuFour is an Executive Vice President of the Chicago
Board Options Exchange. His current responsibilities include
strategic planning, research, product development, international
relations and the joint venture for trading single stock futures. In
previous positions at the CBOE he spearheaded the planning and
development of a new trading facility (1980-1984), established The
Options Institute (1985) and was responsible for the Exchange’s
marketing and public relations activities (1987-1989).
Prior to joining the CBOE in 1980, Mr. DuFour spent ten years in
management consulting where he conducted and supervised a wide
range of assignments. Areas in which he has conducted studies
include strategy development, organizational analysis, financial
feasibility, mergers, facilities planning and management information
systems. During the period 1976-1980 he was responsible for a $125
million expansion program at Rush-Presbyterian-St. Luke’s Medical
Center, a major university medical center in Chicago.
Mr. DuFour holds a bachelor’s degree from Notre Dame University
and an MBA from the University of Michigan. He did postgraduate work at the University of Michigan in the Center for Far
East Asian Studies. While affiliated with Rush Medical Center he
held an appointment as an assistant professor in Health Systems
Management and authored a number of articles on the future of the
health care industry.
Mr. DuFour serves on the boards of OneChicago and of the Lincoln
Park Renewal Corporation. He also serves as Secretary of the
International Options Markets Association and is on the Working
Committee of the World Federation of Exchanges. He is a member
of the Economic Club of Chicago.
Christopher Edmonds
President, ICE Trust
Christopher Edmonds is President of ICE Trust, the whollyowned credit default swap (CDS) clearing house of
IntercontinentalExchange (NYSE: ICE). Mr. Edmonds was named to
this post in February 2010. As president of ICE Trust, Mr. Edmonds
oversees ICE’s U.S. credit derivatives clearing operations.
Prior to joining ICE, Mr. Edmonds was Chief Executive Officer of the
International Derivatives Exchange Group LLC, (IDCG) a clearing
house for interest rate swaps. Prior to IDCG, Mr. Edmonds was the
Chief Development Officer for ICAP ENERGY LLC. Mr. Edmonds held
a variety of positions at ICAP between 2002 and 2008, and at APB
Energy LLC between 1997 and 2002. His professional career prior to
APB Energy focused on advising businesses on strategic planning in
the areas of technology, sales and marketing and operations.
Mr. Edmonds earned a Bachelor of Arts degree in Political Science
from the University of Alabama at Birmingham and is Series 3 and
Series 30 licensed.
Anna Ewing
Executive Vice President & Chief Information
Officer, NASDAQ OMX
Anna Ewing is Executive Vice President and Chief Information
Officer of the NASDAQ OMX Group (NASDAQ: NDAQ). At $23.9
trillion, it was ranked the world’s largest exchange in 2008 based on
value traded on its markets.
Anna has over 25 years experience in delivering client-focused
technology in the financial services industry. In her role at NASDAQ
OMX, Anna is responsible Global Software Development, Global
IT Services, and Market Technology, which provides a commercial
technology offering for 70 exchanges and markets around the world.
Integral to Ms. Ewing’s role is overseeing the exchange’s technology
roadmap.
Most recently, Ms. Ewing has been the technology architect for
NASDAQ OMX’s transformation from a single U.S. cash equities
market to an exchange company with 22 markets around the globe,
covering all major asset classes. In addition to the OMX merger,
Ms. Ewing and her team have re-platformed company acquisitions
including BX, formerly the Boston Exchange and NASDAQ OMX
PHLX; launched a multi-lateral trading facility in London in just
six months; and begun preparation for its Nordic markets to move
to the INET platform in the fall of 2009. The Technology team at
NASDAQ OMX has supported the launch of dozens of new products
across all the company’s business units. All this was accomplished
while providing 99.99+% uptime for its markets, which experienced
record volumes during the financial crisis.
Prior to joining NASDAQ, Anna was with CIBC World Markets in
New York and Toronto, where she served as Managing Director of
Global Applications Services and as a founding member of CIBC.com.
Before that, Ms. Ewing served as Vice President at Merrill Lynch,
where she held various leadership positions within Technology. She
is a graduate of Schulich School of Business at York University in
Toronto.
Hugh Freedberg
Chairman, NYSE Liffe
Mr. Freedberg is Chairman, NYSE Liffe (designate) and a member of
the Board of NYSE Liffe US. He was previously Group Executive Vice
President and Head of Global Derivatives, a member of the NYSE
Euronext Management Committee and a member of the European
NYX Technology Board.
Mr. Freedberg, 63, began his career in financial services in 1975 at
American Express, where he started as Marketing and Sales Director
before being appointed a General Manager. In this position he was
responsible for different markets/regions including UK and Ireland,
Benelux, Southern Europe, Middle East and Africa and South East
Asia. In 1986 he joined Salomon Inc as Chief Executive of The
Mortgage Corporation. In 1990 he became an Executive Director of
the TSB Group and Chief Executive of its Insurance and Investment
Services Division. In 1991 he was appointed Chief Executive of the
Hill Samuel Banking, Investment & Insurance Group.
Joseph Gawronski
Other positions he held at TSB Group included Deputy Chief
Executive of the Group from 1991 to 1996 and a Director of
Macquarie Bank from 1994 to 1996. From 1996 to 1998 he was a
Managing Partner at Korn Ferry International.
President, Rosenblatt Securities
Mr. Freedberg is Chairman of the International Options Market
Association (IOMA) and a member of The Worshipful Company of
International Bankers.
Meyer S. Frucher
Vice Chairman, NASDAQ OMX
Meyer S. (Sandy) Frucher became vice chairman of the NASDAQ
OMX Group when NASDAQ completed its acquisition of the
Philadelphia Stock Exchange (PHLX) in July of 2008. He was
previously chairman and chief executive officer of the Philadelphia
Stock Exchange, appointed to the roles at the Philly exchange in June
of 1998. Frucher also serves as a member of the board of directors of
the Options Clearing Corporation.
Frucher oversaw the demutualization of the PHLX in 2004, the
first floor-based exchange in the U.S. to convert from a seatowned, mutual cooperative institution to a for-profit, shareholding
company.
Prior to the PHLX, Frucher served as a management consultant to
organizations including World Financial Properties Inc. (formerly
Olympia and York). He served as executive vice-president of
development for Olympia and York from 1988 to 1996. He served
from 1984 to 1988 as president and CEO of the Battery Park City
Authority in New York City. Frucher was chief labor negotiator for
the state of New York from 1978 to 1983.
He is the founding chairman and current member of the board of
the Massachusetts Museum of Contemporary Art.
Frucher received a Bachelor’s degree in Government from Columbia
University and earned a Master of Public Administration degree from
the John F. Kennedy School of Government, Harvard University.
Joe Gawronski is the President and Chief Operating Officer of
Rosenblatt Securities, an agency-only institutional brokerage firm
founded in 1979. Headquartered in New York City, with a European
office in Dublin, the firm represents traditional institutions, quants
and portfolio trading customers in all global equity and ETF markets
through its trading desk and via direct access to the NYSE floor,
a service that it pioneered in the late 1980s. In addition, it has
been at the forefront of embracing automation to enhance trading
efficiency and the self-sufficiency of the buy-side, from creating
DOT for non-member firms over fifteen years ago to offering DMA
for ECN access and sophisticated algorithmic tools today. The firm
believes that its responsibility lies not only in executing orders that
are entrusted to it, but also helping clients identify the best tools
for when they are trading themselves, use appropriately the tools
selected, and navigate an increasingly complex equity marketplace.
The firm accesses all exchanges, ECNs, crossing networks and dark
pools that have meaningful liquidity and in its opinion can be safely
used without information leakage or gaming. In addition, the firm
provides analysis on the exchange and brokerage space to (i) traders
to help them make strategic and tactical adjustments to their
trading approaches based on market structure changes and new
product developments and (ii) portfolio managers and analysts to
add the unique, expert insights of a practitioner to their investment
considerations.
Joe is formerly a securities lawyer with Sullivan & Cromwell, a
Vice President in the equities division with Salomon Smith Barney
and COO of Linx LLC, an electronic block trading system. He is
an Allied Member of the NYSE, a member of the NYSE Hearing
Board, a member of the Advisory Boards of both the Journal of
Trading and Wall Street & Technology magazine, a term member
of the Council on Foreign Relations and the author or co-author of
several published papers on equity market structure and frequent
lecturer, moderator and panelist on the topic. He received his B.A.
in Public and International Affairs at Princeton’s Woodrow Wilson
School and his J.D. from Harvard Law School. Joe can be reached at
[email protected].
Gary Gensler
Todd Hohman
Chairman, CFTC
Managing Director, Quant Vol Trading,
Goldman Sachs
Gary Gensler was sworn in as the Chairman of the Commodity
Futures Trading Commission on May 26, 2009. Chairman Gensler
previously served at the U.S. Department of the Treasury as Under
Secretary of Domestic Finance (1999-2001) and as Assistant
Secretary of Financial Markets (1997-1999). He subsequently served
as a Senior Advisor to the Chairman of the U.S. Senate Banking
Committee, Senator Paul Sarbanes, on the Sarbanes-Oxley Act,
reforming corporate responsibility, accounting and securities laws.
As Under Secretary of the Treasury, Chairman Gensler was the
principal advisor to Treasury Secretary Robert Rubin and later to
Secretary Lawrence Summers on all aspects of domestic finance. The
office was responsible for formulating policy and legislation in the
areas of U.S. financial markets, public debt management, the banking
system, financial services, fiscal affairs, federal lending, Government
Sponsored Enterprises, and community development. In recognition
of this service, he was awarded Treasury’s highest honor, the
Alexander Hamilton Award.
Prior to joining Treasury, Chairman Gensler worked for 18 years at
Goldman Sachs, where he was selected as a partner; in his last role
he was Co-head of Finance.
Chairman Gensler is the co-author of a book, The Great Mutual Fund
Trap, which presents common sense investment advice for middle
income Americans.
He is a summa cum laude graduate from the University of
Pennsylvania’s Wharton School in 1978, with a Bachelor of Science
in Economics and received a Master of Business Administration from
the Wharton School’s graduate division in 1979. He lives with his
three daughters outside of Baltimore, Maryland.
Takeshi Hirano
Head, Strategic Planning, Clearing and
Settlement, Tokyo Stock Exchange, Inc.
Takeshi Hirano has been in charge of planning of TSE’s strategy
for clearing and settlement area since he started his career in post
trade business development at TSE in June 2000. He managed the
establishment of Japan Securities Clearing Corporation, the first
cross-market clearing house for listed equities in Japanese stock
exchanges as Chief Manager of Business Set-up Office. Takeshi has
been appointed as a member of variety of relevant committees in
the industry with regard to the dematerialization of stock certificates
in Japan, as well as an executive committee member of CCP12. He
has MBA from Haas School of Business, UC Berkeley.
Todd Hohman focuses on the Quantitative Volatility Trading
businesses within the Securities Division of Goldman Sachs. He has
spent time in New York, Chicago, Frankfurt and London participating
in most local derivatives markets and is currently based in New York.
Todd earned a BS and an MBA from the University of Illinois.
Jeromee Johnson
Vice President, Market Development, Head of
BATS Options, BATS Exchange
Jeromee Johnson joined BATS Exchange in March 2009 as vice
president of market development and head of BATS Options, the
newest U.S. equity options exchange.
Previously Mr. Johnson was president of 3D Markets, a nationally
recognized provider of software and technology for institutional
equity options trading. He was instrumental in designing and
launching Archangel, the first “dark pool” trading network in U.S.
equity options.
Mr. Johnson is the author of a number of seminal industry titles
including “Locating the Invisible: Aggregating Dark Book Liquidity”
and “Trading at Light Speed: Analyzing Low Latency Market Data
Infrastructure.” He is a frequent speaker at industry events and
conferences and a regular fixture in financial media providing expert
commentary on trading technology and financial markets regulation.
Prior to 3D Markets, Mr. Johnson was a senior analyst and consultant
with TABB Group, the financial markets research and advisory firm.
Before TABB, Mr. Johnson was director of product development and
professional services for UNX, an agency brokerage and provider of
electronic trading tools for institutional investors. He holds Series 4,
7, 24, 63 and 65 licenses.
Christopher Jones
Director, Head of Risk Management, LCH.Clearnet
Chris joined LCH in 1993 on the credit and membership side before
assuming responsibility for credit in 1997. He moved into market
risk and the development of new risk techniques for new services
in 1998 and was heavily involved in the development of SwapClear
and RepoClear in 1999. He developed the new VaR model (LCHC
ERA) for cash equities in 2002 before assuming responsibility for
the whole risk management department across both market and
credit risk in 2003. Since that time he has implemented the ‘ground
breaking’ default management arrangements for SwapClear as well
as managing the defaults of Lehmans and near defaults of Refco and
Enron. He has also developed new VaR algorithms for OTC interest
rate swaps. He is currently chairman of the EACH Risk Management
Committee.
He is married with two children and when he has the time is a keen
golfer, surfer and snowboarder.
Gary Katz
President & Chief Executive Officer,
International Securities Exchange
Gary Katz is President and Chief Executive Officer of the
International Securities Exchange (ISE) and is a co-founder of the
Exchange. Prior to assuming his current position, Mr. Katz served as
Chief Operating Officer of ISE.
Mr. Katz is one of the principal developers of ISE’s unique options
market structure - an auction market on an electronic platform.
He is named as inventor or co-inventor on six patents that ISE has
received or applied for relating to its proprietary trading system and
technology.
Before joining ISE at its inception, Mr. Katz served from 1997 to
1998 as President and co-founder of K-Squared Research, LLC, a
financial services consulting firm. From 1986 until 1997, he held
several positions in the Options and Index Products Division at the
New York Stock Exchange where he became Managing Director.
During his tenure at NYSE, Mr. Katz also was a co-founder of The
Options Industry Council, a trade group dedicated to promoting
the equity options sector through the education of the investing
public. Prior to 1986, Mr. Katz was an actuary with the Equitable Life
Assurance Company and is an Associate of the Society of Actuaries.
Mr. Katz formerly was an Adjunct Professor of Statistics at the Stern
School of Business, New York University, where he conducted classes
in business mathematics applications and also taught classes in
options strategies and pricing at the New York Institute of Finance.
Mr. Katz has an MS in Statistics with Distinction from New York
University and a BA from Queens College.
Mr. Katz serves on the Executive Board of Eurex and also represents
ISE on the Board of Directors of The Options Clearing Corporation.
He is also a member of the Board of Directors of Direct Edge
Holdings, LLC.
Richard Ketchum
Chairman and Chief Executive Officer, FINRA
Richard Ketchum, 56, has been chief executive officer of NYSE
Regulation, Inc., since 2006. He is a member of the NYSE Regulation
board of directors and the NYSE Group Operations Committee.
Mr. Ketchum is also chairman of the board of the Financial Industry
Regulatory Authority (FINRA). He also serves as chairman of the
regulatory committee of the World Federation of Exchanges.
Mr. Ketchum had served as the first chief regulatory officer of the
New York Stock Exchange since March 8, 2004. From June 2003 to
March 2004, Mr. Ketchum was General Counsel of the Corporate
and Investment Bank of Citigroup Inc., and a member of the unit’s
planning group, Business Practices Committee and Risk Management
Committee.
Previously, he spent 12 years at NASD and the NASDAQ Stock
Market, Inc., where he served as president of both organizations.
Prior to working at NASD and NASDAQ, Mr. Ketchum was at the
U.S. Securities and Exchange Commission for 14 years, eight of those
as director of the division of Market Regulation.
Mr. Ketchum earned his J.D. from the New York University School
of Law in 1975 and his B.A. from Tufts University in 1972. He is a
member of the bar in both New York and the District of Columbia.
Elizabeth K. King
Associate Director, Division of Trading
and Markets, U.S. Securities and Exchange
Commission
Elizabeth King is an Associate Director in the Division of Trading
and Markets at the U.S. Securities and Exchange Commission. In
this position, she directs the development of policy and regulatory
recommendations for the Commission’s program for oversight of
U.S. exchange-traded options and new derivative products, as well
as the other U.S. securities exchanges and FINRA. She also is also
responsible for developing and coordinating the Commission’s
policy recommendations regarding the OTC derivatives markets.
Ms. King joined the staff in 1993. Prior to joining the Commission,
Ms. King was an associate at the law firm of Shaw, Pittman, Potts &
Trowbridge. Ms. King has a J.D. from the University of Pennsylvania
and an A.B. from Duke University.
Kevin King
Theodore Lubke
Executive Vice President, Head of Risk
Management Division, Hong Kong Exchanges
and Clearing
Senior Vice President, Bank Supervision Group,
Federal Reserve Bank of New York
Kevin joined Hong Kong Exchanges and Clearing Ltd. (HKEx) as
EVP Head of Risk Management Division on March 31, 2008. HKEx
operates the centralized securities and derivatives markets in Hong
Kong and is also responsible for the front line regulation of listed
issuers and for market surveillance. The Risk Management Division
is responsible for the risk management functions within HKEx and
is made up of 3 departments: Cash Clearing Risk Management;
Derivatives Clearing Risk Management and ERM & Surveillance
respectively.
Kevin has 33 years of broad based risk management and finance
experience including corporate finance, risk management advisory
and exchange/clearing house risk management. Before joining HKEx
he was Vice President Risk Management for OMX Nordic Exchange
in Stockholm, Sweden for 8 years. Prior to that he worked primarily
in banking and investment banking in New York and Stockholm.
Kevin has a Bachelor of Arts-Economics from St. Lawrence University
and a Masters Degree in Business Administration-Finance from
Fordham University Graduate School of Business. Kevin is a member
of the Global Association of Risk Professionals and the Professional
Risk Managers’ International Association and is also a member of the
Executive Committee of CCP 12.
Theo Lubke is a Senior Vice President in the Bank Supervision Group
at the Federal Reserve Bank of New York where he oversees efforts
to improve the resiliency of the OTC derivatives infrastructure and
heads the Financial Infrastructure Department. Prior to that, he
managed the supervisory relationships with large, complex foreign
banking organizations.
Prior to joining Bank Supervision, Mr. Lubke headed the Electronic
Payments Function, where he managed the New York Fed’s Fedwire
operations. Previously, he had been in the Research Group where his
work primarily focused on risk management of wholesale payment
and settlement systems. During that time, he represented the New
York Fed on committees at the Bank for International Settlements
coordinating the G-10 effort to reduce foreign exchange settlement
risk and developing core principles for the design and oversight of
payment systems.
Before joining the New York Fed in 1995, he worked on the staff of
the National Economic Council at the White House. Previously, he
had worked as an investment banking analyst at Lehman Brothers.
Mr. Lubke holds a B.A. from Harvard College and a Master of Public
Policy from Harvard University’s Kennedy School of Government.
John J. Lothian
Stewart Macbeth
President & Chief Executive Officer, John J. Lothian Company
Managing Director, DTCC
John J. Lothian is the founder of MarketsWiki.
He is also a futures broker, newsletter editor and publisher,
Commodity Trading Advisor (CTA) and industry consultant. Lothian
is the president & CEO of John J. Lothian & Company, Inc., a
National Futures Association member CTA. John is also the president
of the Electronic Trading Division of The Price Group.
He is the editor and publisher of the John Lothian Newsletter and
publisher of Environmental Markets Newsletter.
He is a 1983 graduate of Purdue University in West Lafayette,
Indiana and holds a Bachelor of Science degree in General
Management/Finance and a Bachelor of Arts in Mass
Communications/Journalism.
John is Scoutmaster of Boy Scout Troop 117 of Elmhurst, IL and
District Chairman of Potawatomi Trails District of Three Fires
Council, Boy Scouts of America. He is also a referee with American
Youth Soccer Organization.
Macbeth comes to DTCC with more than 15 years of OTC
derivatives industry experience. He was most recently managing
director, global head of operations risk and business architecture at
UBS, a position he held since 2007. From 1996 to 2002, he ran fixed
income derivatives operations globally for the firm; managing credit
derivatives support activities, which also included designing and
implementing settlement and confirmation applications. In 2002, he
became global head of all OTC derivatives operations, at which time
he assumed responsibility for equity derivatives.
Prior to UBS, Macbeth was at KPMG in London, in their financial
services practice, where he qualified as a Chartered Accountant.
He earned a Bachelor’s degree in mathematics from Nottingham
University and a Masters degree from the University of London.
Martin Mannion
Edwin Marcial
Chief Operating Officer, Citadel Execution
Services
Chief Technology Officer,
IntercontinentalExchange
Martin Mannion is Chief Operating Officer of Citadel Execution
Services (CES) of North America based in Chicago. CES is part of
Citadel Securities and offers broker dealers a wide range of order
routing and execution services across equities and all listed options
products. Citadel’s automated model provides immediate access to
all U.S. options exchanges. Citadel Securities is one of the largest
liquidity providers in Equities & Options in The United States.
Mr. Mannion currently sits on the boards of DirectEdge Holdings,
an electronic trading system for U.S.-listed equities, and EASDAQ,
which owns and operates Equiduct Systems Ltd., an electronic
exchange for European equities.
Prior to joining Citadel in 2004, Mr. Mannion spent 4 years at the
NASDAQ Stock Market in the Transaction Services group.
Mr. Mannion holds a Bachelor’s of Arts in International Affairs from
George Washington University in Washington, DC.
Michael March
Edwin Marcial has served as Chief Technology Officer of
IntercontinentalExchange (NYSE: ICE) since its establishment in
May 2000 and as a Senior Vice President since November 2002.
Mr. Marcial is responsible for systems development and ICE’s
overall technology strategy. He also oversees the software design
and development initiatives of ICE’s information technology
professionals in the areas of project management, software
development and quality assurance.
Mr. Marcial has nearly two decades of experience building largescale information technology systems in the energy industry. Prior
to joining ICE, Mr. Marcial was on the software development team
at Continental Power Exchange (CPEX), an electronic spot market for
electric power. Before joining CPEX in 1996, Mr. Marcial led design
and development teams at GE-Harris, building software application
for the company’s energy management systems.
Mr. Marcial earned a Bachelor of Science degree in Computer
Science from the College of Engineering at the University of Florida.
Bernardo Mariano
Director of Business Development, LCH.Clearnet Ltd.
Michael March is Director, Business Development at LCH.Clearnet.
The Business Development team has been instrumental in
the development of OTC cleared products. Starting with the
introduction of a clearing service for interbank interest rate swaps
in 1999, the team has gone on to develop OTC services in repo
and bonds, energy, freight and emissions. More recently it has been
involved in developing clearing services for Nodal Exchange, the
new US power market and the new Hong Kong Mercantile Exchange
(HKMEx).
He joined London Clearing House in September 1999, having
spent some twenty five years working in credit and political risk
securities. After 20 years as a specialist insurance broker, he joined
Bank Austria in 1995, where he led the bank’s development of the
then revolutionary concept of alternative risk transfer, specializing
in the creation of support schemes for derivatives exchange clearing
functions. From 1999 to 2008, he was Director of Corporate
Communications for the Group.
Analyst, ERDesk
Bernardo is an analyst at ERDesk covering exchanges and trading
technology firms in the cash, derivatives, energy, and FX markets
in the US, Europe, Asia, and Latin America. He has also has an
extensive experience structuring private deals for the acquisition
of mutual exchanges. Prior to joining ERDesk Bernardo worked as
a Director for Instinet and later, CEO of Reuters’ Bondex. Bernardo
has regularly been quoted in the media, including The Wall Street
Journal, Financial Times, Traders Magazine, Brazil Economic, Traders
Magazine and others. He holds an MS in Economics from The
University of Illinois and a MIA in Finance from Columbia University.
Jacques Der Megreditchian
Chairman of the Board of Directors, RTS
Exchange Chief Business Officer, Troika Dialog
In 2003 Jacques Der Megreditchian became Member of the RTS
Board of Directors, bringing with him nearly 20 years’ experience
in investment banking and brokerage, in both Western and Russian
capital markets. In 2004 Mr. Der Megreditchian was elected
Chairman of the RTS Board of Directors. Since 2006 Mr. Der
Megreditchian has been a Member of the Board of Directors of the
National Association of Stock Market Participants (NAUFOR).
Jacques Der Megreditchian holds a position of Chief Business Officer
of Troika Dialog being in charge of all business divisions including
global markets, investment banking, asset management, private
banking, alternative investments and merchant banking. Previously
from 2000 to 2009, Mr. Der Megreditchian was the Head of Global
Markets at Troika Dialog.
Prior to Troika, from 1996 to 2000, Mr. Der Megreditchian was
Deputy General Manager of Societe Generale in Moscow, where
he was in charge of capital markets and investment banking.
From 1993 to 1996, he was Chief Representative in Russia for
Credit Commercial de France (CCF). He handled major advisory
assignments during Russia’s early privatization programs and served
as the Director of the Framlington Russian Investment Fund, a
Luxembourg-based open-ended mutual fund (SICAV).
Prior to working in Russia, Mr. Der Megreditchian built a solid and
diverse track record with CCF in Europe. From 1991 to 1993, he
served as Deputy General Manager in Brussels where he was in
charge of securities trading operations. From 1986 to 1991, he
worked in the bank’s Paris division, first as a Dealer in the Treasury
Department, then as an Interest Rate Dealer and then as Head of
both Fixed Income (French market) and Proprietary Trading (North
American and European markets). He initially joined CCF as an
Equity Analyst in Paris in 1985.
Jacques Der Megreditchian graduated from European Business
Institute, Paris in 1984 and from French Center for Financial Analysis
(CFAF), Paris in 1987.
Dale Michaels
Michaels joined CME in 1995 as an Investigator in the company’s
market regulation area. He joined the Clearing House’s Risk
Management area in 1996 as a Risk Management Analyst, and
he has held numerous roles and leadership positions in Risk
Management since that time. Before joining CME, Michaels worked
as a Treasury bond futures and options trader and as a Staff
Economist and Financial Analyst at CBOT.
Michaels earned a bachelor’s degree in finance and economics from
Illinois State University and a MBA degree in finance from DePaul
University. He also holds a Chartered Financial Analyst designation.
Ravi Narain
Managing Director & Chief Executive Officer,
Name in Full: Ravi Narain
Date of Birth: August 19, 1955
Present Position: Managing Director and CEO, National Stock
Exchange of India Limited (NSE)
Address: “Exchange Plaza”, Bandra - Kurla Complex,
Bandra (E), Mumbai - 400 051, India.
Education: Degrees in Economics from Cambridge University, UK
and Business Administration (Finance) from the Wharton School,
University of Pennsylvania, USA.
Positions:
Managing Director, Credit & Risk Management,
CME Group
Dale Michaels was appointed Managing Director, Credit & Risk
Management of CME Group in August 2007. He is responsible for
managing CME Clearing’s exposure to counterparty risk, including
monitoring market volatility, setting minimum performance bond
requirements, enhancing CME’s risk management systems and
building new and enhanced margin algorithms.
Previously, Michaels served as Director, Risk Management of CME
since 2001. During his tenure, he has played a key role in CME’s
efforts to establish its historic clearing agreement with the Chicago
Board of Trade® (CBOT®), including responsibility for margining
issues, cross-margining agreement changes and development of new
risk management tools. He also is responsible for the integration
of NYMEX risk management and margins in conjunction with
CME Group’s acquisition of NYMEX. Michaels most recently led
CME Clearing’s development of financial safeguards and margin
methodologies for clearing credit default swaps.
• Part of the core team which established the NSE.
• Prior to joining NSE, worked at senior level positions with the
Industrial Development Bank of India (IDBI).
• Chairman of National Securities Clearing Corporation Ltd. (NSCCL)
and NSE.IT Ltd.
• As a Director on the Boards of the National Securities Depository
Ltd. (NSDL) and National Commodity & Derivatives Exchange Ltd.
(NCDEX)
• Associated with various committees of the Securities & Exchange
Board of India (SEBI) and the Reserve Bank of India (RBI).
• Member of the core team which did the initial work for the
establishment of the market regulator the Securities and Exchange
Board of India (SEBI).
Eric Noll
Executive Vice President, Transaction Services,
NASDAQ OMX
Eric W. Noll oversees the trading operations of all U.S. Transaction
Services business including The NASDAQ Stock Market, NASDAQ
OMX BX, NASDAQ OMX PHLX, The NASDAQ Options Market,
The NASDAQ OMX Futures Exchange and strategic investments
including International Derivatives Clearing Group. In addition,
he is responsible for NASDAQ OMX Europe, the London-based
multilateral trading facility.
Mr. Noll joined NASDAQ OMX from Susquehanna International
Group, LLP where he served as Managing Director of SFG, and
as Associate Director and Global Head of Strategic Relationships
for SIG since 1994. During his time at Susquehanna, Eric oversaw
all the exchange relationships, created the investment banking
department, developed an institutional equity research department
and was responsible for all options and equity order flows for the
market-maker operation. He also managed new businesses, strategic
investments including technology, investment banking, and private
equity focused businesses, as well as acquisitions and international
alliances.
Prior to his time at Susquehanna International Group, Mr. Noll
held positions at the former Philadelphia Stock Exchange and The
Chicago Board Options Exchange. He has a Master of Business
Administration from the Owen Graduate School of Management at
Vanderbilt University with a Finance Concentration and a Bachelor
of Arts with a double major in Economics and Government from the
Franklin and Marshall College. Mr. Noll is a Trustee of Franklin and
Marshall College and is a Member of the Board of Visitors of the
Owen Graduate School of Management.
Garry O’Connor
Chief Executive Officer, International Derivatives Clearing Group
Garry N. O’Connor is the Chief Executive Officer of IDCG.
Prior to joining IDCG, Mr. O’Connor spent seventeen years in the
Investment Banking industry, pricing and managing interest rate
derivative portfolios. He has held senior positions in Sydney, Tokyo,
Hong Kong and New York with Bankers Trust and then Merrill Lynch.
During his time at Merrill Lynch, Mr. O’Connor held a number of
roles managing interest rate derivatives risk including:
• leading the Australasian interest rate derivatives trading operation
out of Sydney;
• leading the Japanese Yen swaps desk out of Tokyo;
• and establishing and managing a USD interest rate trading
business in Hong Kong.
Most recently he was charged with establishing a North American
presence in the European derivatives markets. At Bankers Trust,
Mr. O’Connor managed interest rate, foreign exchange, and
commodities risk in Auckland and in Sydney. He was also responsible
for price making and risk management activities in Australian and
New Zealand interest rate derivatives.
As the CEO of IDCG, Mr. O’Connor has testified on Capitol Hill,
met with government regulators and spoken at numerous industry
forums on the need for central counterparty clearing and the
benefits of extending clearing to all markets participants. He
previously served as IDCG’s Chief Product Officer and remains
responsible for designing and implementing IDCG’s cleared
interest rate derivative products. He has used his experience as an
interest rate trader to design IDCG’s product specifications to be
economically equivalent to over the counter market.
Mr. O’Connor received a BCom (Hons) from Otago University in
1992.
Steven M. Sears
Options Editor, Senior Special Writer, Barron’s
Steven M. Sears is the Options Editor for Barron’s and Barrons.com,
the online component of The Dow Jones’ business and financial
weekly publication. He writes the “Striking Price,” and “Striking Price
Daily” columns, which focus on options trading, the stock market
and investment trends.
In his career at Dow Jones, Mr. Sears has pioneered coverage of the
options markets for Dow Jones Newswires, The Wall Street Journal
and Barrons.com. He also has served as Director of Corporate Affairs
at the International Securities Exchange, and as Senior Advisor to the
Chairman of the Philadelphia Stock Exchange.
Mr. Sears is a member of the Economic Club of New York.
Rina Shafir
Senior Vice President, Trading & Clearing
Department, Tel-Aviv Stock Exchange
Ms. Rina Shafir was born in 1963. She was nominated for her current
position in January 2009.
Prior to joining the TASE, between the years 2005-2008, Ms. Shafir
served as the CEO of Impact Investment Portfolio Management Ltd
(Union Bank Group). From 1995 through 2005 she was the head of
Union Bank’s Securities and Investment Consultancy Department.
Between the years 1985-1995, Ms. Shafir has held various positions
within the Israeli capital market.
Michael Walinskas
Education:
1986 - Tel-Aviv University - B.A. in Economics (cum laude)
1989 - Tel-Aviv University - MBA (majored in Finance)
In addition, Rina Shafir is a member of the Haifa Music Center Board
of Directors.
In 2006 Ms. Shafir received “The woman of the year” award from
“Neta” - women in management, technology and business.
Jae Seung Shim
Executive Director, Derivatives Market
Division, KRX
Jae Seung Shim was born in Daejeon, South Korea on August 23,
1959. He had worked for securities company and investment
advisory firm over ten years until he moved to the Kofex (Korea
Futures Exchange) in 1999. Since 2005, he has been working for
the KRX (Korea Exchange), which was established with the merger
between Kofex and KSE (Korea Stock Exchange). He was appointed
to the Executive Director of Derivatives Market Division, KRX in
2009. Now he is responsible for the development of derivatives
products and clearing & settlement of KRX.
Mr. Shim graduated from Yonsei University in Korea in 1981 and
earned his MBA from the Graduate School of Yonsei University in
1985.
Maria Velentza
Head of Unit G3 (Securities Markets) DG Internal Market & Services, European
Commission
Maria Velentza is the head of unit of the Securities Markets of the
European Commission. She was born in Athens, Greece and has the
Greek nationality. She’s a graduate of the German School of Athens
and studied law at the University of Athens. She continued her
post-university studies (DEA en Droit Communautaire) in European
Law in Paris, Sorbonne (Paris II). She qualified as a lawyer in Greece
in 1990. She has been working in the Commission since 1991 as
a legal advisor in various sectors: enterprise policy (focusing small
and medium sized enterprises); freedom of establishment and free
movement of professionals and services; banking, insurance and
payment systems ; better regulation, contract law, precautionary
principle, late payments directive; pharmaceuticals She has been
working in her current unit since October 2002. At present, her main
responsibility are institutional and legal aspects of the securities
markets, regulatory policy (for instance in the context of the
“MIFID”, Market Abuse and Prospectus directives), Credit Rating
Agencies, international discussions in the field of securities (e.g. on
mutual recognition) and supervisory convergence. She is fluent in
Greek, German, French, English and Spanish and she understands
Italian and Portuguese. She has acquired some basic knowledge in
Dutch and Swedish.
Senior Vice President, Risk Management and
Membership, OCC
Mr. Walinskas is a senior vice president in charge of Risk
Management and Membership for The Options Clearing Corporation
(OCC). Prior to his current position, Mr. Walinskas led Strategy
and Business Development for OCC. He is also a former executive
director of the Options Industry Council, an industry cooperative led
by OCC. Mr. Walinskas joined OCC in 1999.
Mr. Walinskas served on the staff of the Securities and Exchange
Commission (SEC) from 1990 to 1999. As a former associate
director within the SEC’s Division of Market Regulation, Mr.
Walinskas played a key role in the development of SEC policy on
many important equity and derivatives markets issues, and served as
a manager responsible for regulatory oversight of the U.S. stock and
options exchanges.
Mr. Walinskas received a J.D. degree from Georgetown University
and a B.A. degree from the University of Maryland.
Scot E. Warren
Managing Director, Equity Index Products &
Index Services
Scot E. Warren has served as Managing Director, Equity Index
Products & Index Services of CME Group since February 2010. He
is responsible for overseeing the company’s equity product line and
index services business. Prior to assuming his current role, Warren
most recently served as Managing Director, Equity Products since
joining CME Group in 2007.
Warren also serves as CEO of CME Group Index Services LLC, a
joint venture company between CME Group and Dow Jones, which
continues to do business as Dow Jones Indexes and includes the Dow
Jones Industrial Average as well as approximately 130,000 index
properties.
Before joining CME Group, Warren gained more than 16 years
of equity trading management experience. He most recently
served as Vice President, Manager Trading and Business Analysis,
Goldman Sachs and Co. While at Goldman, Warren managed their
equity wholesaling to broker dealers and developed businesses
strategies that analyzed client and product profitability and business
performance. Prior to joining Goldman Sachs, he managed equity
and option execution and clearing businesses for ABN AMRO in
Chicago and was a senior consultant for Arthur Andersen & Co. for
financial services firms.
He earned a bachelor’s degree in accounting from Pennsylvania
State University and a master’s of science degree in financial
markets and trading from the Illinois Institute of Technology Stuart
School of Business.
Tony Weeresinghe
Marcus Zickwolff
Director, Global Development, London Stock
Exchange Group; and Chief Executive Officer,
Millennium IT
Executive Director, Eurex Group
Personal profile
Founder CEO of Millennium Information Technologies
• Built a very innovative company with many patents
• Grew the company from 12 to 450 employees today
• Implemented the 1st event driven stock exchange in the world in
1977
• Interview by world business review Host Caspar Wienberger
(Former United States Secretary of Defense
• Chairman, Forbes Magazine) for innovative technology on
distributed Fault Tolerance.
• Was the first to raise international venture capital for a Sri Lankan
software company.
• Was the 1st company to build a Campus style development center
in Sri Lanka.
• Was the 1st to introduce voice over IP solutions in Sri Lanka.
• Prestigious Customers as ICAP and Amex for the trading system.
• Introduced technology for a very creative cost cutting operation
and employment productivity tools at the company
• Created a unique culture in the company where the attribution is
less than 5%
• Chairman and founder of E-Channelling the 1st e-commerce
company in Sri Lanka.
• Responsible for giving the vision and building the World’s fastest
trading system today.
• Merged with London Stock Exchange after winning the automation
project to change all automation in the London Stock Exchange
group.
• Awarded Presidential award of Sri Lanka Sikhamani (This is given to
the outstanding contribution made to the country, it is given only to
200 living citizen’s)
Position
• CEO and Managing Director, Millennium Information Technologies
Limited: Jan. 1996 - Present
• CEO & President, Millennium IT (USA) Inc: Sep 2001 - Present
• Director of Business Development & Executive Committee Member,
London Stock Exchange Group: Sep 2009 - Present
• CEO, Open Systems Computerland: 1994 - Dec. 1995
• Country Manager Oracle, Data Management Systems Ltd: 1991 - 1993
• Software Manager, Data Management Software Limited: 1984 - 1985
Since July 2007, Marcus Zickwolff has been Head of Trading
& Clearing System Design of Deutsche Börse AG’s derivatives
exchange Eurex in Frankfurt. He is responsible for the design and
implementation management of the Eurex® system for trading and
clearing of derivatives as well as of the CCP system for clearing of
securities and the central Risk Engine system.
In 1992 Marcus joined the Information Technology Section of
Deutsche Terminbörse (DTB). After contributing decisively to
Deutsche Börse´s reorganization and the incorporation of DTB,
Marcus was responsible Program Manager for the successful launch
of the first Xetra® Releases from 1995 to 1997. Xetra® is the
electronic trading system of Deutsche Börse Group’s cash market. As
Head of the Xetra® Market and Product Development Department
he worked for the business development of the cash market,
which included the introduction of a CCP for equities in 2002.
From 2003 Marcus led a group-wide System Design Department
within Deutsche Börse AG’s Functionality Division covering trading,
clearing, settlement and securities financing systems.
Since April 2007, Marcus is Secretary of the European Association
of Central Counterparty Clearing Houses (EACH) and joined the
Executive Committee of CCP12 - the Global Association of Central
Counterparties - as of April 2008.
List of participants
WFE IOMA/IOCA
members
Mr. David Shuler
Managing Director, Alliance and Venture
Management
CME Group
Mrs. Adriana Sanches
Equity Products Manager
BM&FBOVESPA S.A.
Mr. Sean Keating
Managing Director, NYMEX Operations
CME Group
Mrs. Angela Valderrama
Vice President
Bolsa de Valores de Colombia S.A.
Mr. Joe Raia
Managing Director, Energy & Metals Products
CME Group
Mr. Mohamed Dzaiddin Hj Abdullah
Chairman
Bursa Malaysia Berhad
Mr. Paul Hugues
Sr. Business Development Analyst
CME Group
Mr. KS Chong
Chief Executive Officer
Bursa Malaysia Derivatives Berhad
Mr. Andreas Preuss
Deputy Chief Executive Officer
Deutsche Börse AG
Mr. Sree Kumar Ck Nayar
General Manager
Bursa Malaysia Derivatives Berhad
Mrs. Sujata Wirsching
Eurex Clearing AG
Mr. William Brodsky
Chairman & Chief Executive Officer
Mr. Richard DuFour
Executive Vice President
Ms. Carol Kennedy
Vice President, Corporate Communications
Mr. Dale Michaels
Managing Director, Credit and Risk
Management
CME Group
Mr. Scot Warren
Managing Director, Equity Index Products and
Index Services
CME Group
Mr. Thomas Krabbe
Director, Corporate Finance - International
CME Group
Mr. Nicholas Guy Reynoldson
Director, Business Development
CME Group
Mr. Sam Coady
Managing Director, Corporate Finance
CME Group
Mr. Chris LaRosa
Director, Association Relations
CME Group
Mr. John Pietrowicz
Managing Director, Business Development &
Corporate Finance
CME Group
Mr. Thomas Book
Member of the Executive Board
Eurex Clearing AG
Mr. Marcus Zickwolff
Executive Director
Eurex Group
Mr. Richard Ketchum
Chairman & Chief Executive Officer
FINRA
Mr. Kevin King
Executive Vice President, Head of Risk
Management Division
Hong Kong Exchanges and Clearing
Mr. Sukho Jung
Senior Vice President
Korea Exchange
Mr. Michael March
Director of Business Development
LCH.Clearnet Limited
Mr. Christopher Jones
Director, Head of Risk Management
LCH.Clearnet Limited
Mr. Tony Weeresinghe
Director, Global Development
London Stock Exchange Group
Mr. Ignacio Solloa
Deputy Chief Executive Officer
MEFF
Mr. Jorge Alegria
Mercado Mexicano de Derivados (MEXDER)
Mr. Igor Marich
MICEX
Mr. Robert Greifeld
NASDAQ OMX Group
Mr. Meyer S. Frucher
Vice Chairman
NASDAQ OMX
Ms. Anna Ewing
Executive Vice President &
Chief Information Officer
NASDAQ OMX
Mr. Christopher S. Edmonds
President
ICE Trust U.S. LLC
Mr. Eric Noll
Executive Vice President,
Transaction Services
NASDAQ OMX
Mr. Thomas Farley
President/Chief Operating Officer
ICE Futures, U.S.
Mr. Michael Beaver
Managing Director
NASDAQ OMX
Mr. Edwin Marcial
Chief Technology Officer
IntercontinentalExchange ICE
Mr. Charles Mack
Director
NASDAQ OMX
Mr. David Krell
Chairman
International Securities Exchange - ISE
Mr. Bryan Christian
NASDAQ OMX
Mr. Gary Katz
President & Chief Executive Officer
Mr. Thomas Ascher
Chief Strategy Officer
Mr. Jae Seung Shim
Executive Director,
Derivatives Market Division
Korea Exchange
Mr. Barry Nobel
Transaction Services
NASDAQ OMX PHLX
Mr. Tom Wittman
President
NASDAQ OMX PHLX
Mr. Ben Craig
President
NASDAQ OMX Futures Exchange
Other WFE affiliates,
and correspondents
Mr. Michael West
AVP - US Options
The NASDAQ Stock Market
Ms. Shan-Ling He
Associate
Taiwan Stock Exchange Corp.
Mr. Ravi Narain
Managing Director & Chief Executive Officer
National Stock Exchange of India Limited
Ms. Ming-Chieh Hsueh
Associate
Mr. Thomas F. Callahan
Executive Vice President and Head of NYSE
Liffe U.S.
NYSE Euronext
Ms. Rina Shafir
Senior Vice President,
Trading. & Clearing Dept.
Mr. Edward Boyle
Executive Vice President, Options
NYSE Euronext
Ms. Sharon Lavy
Derivatives Unit Manager
Ms. Yu-Ting Chen
GreTai Securities Market
Mr. Hendrik Koppe
Director
NYSE Euronext
Mr. Stewart Macbeth
Managing Director
The Depositary Trust & Clearing Corporation
Mrs. Ha Nguyen Thi Viet
Director of Research &
Development Department
HoChiMinh Stock Exchange
Mr. Hugh Freedberg
Chairman
NYSE Liffe
Mr. Michael Walinskas
Risk Management and Membership
The Options Clearing Corporation (OCC)
Mrs. Thanh Pham Thi Ngoc
Senior Officer-International
Cooperation Department
HoChiMinh Stock Exchange
Mr. Takeshi Hirano
Head, Strategic Planning, Clearing and
Settlement Dept.
Tokyo Stock Exchange, Inc.
Mr. Joseph Rizzello
National Stock Exchange
Mr. Jesper von Zweigbergk
Senior Vice President, Head of Derivatives
Oslo Børs
Dr. Jianyu Chen
Derivatives Dept
Shenzhen Stock Exchange
Mr. Jilin Liu
Deputy Director, IT Engineering Dept
Mr. Yufeng Wang
IT Engineering Dept
Mr. Hong Zhao
System Operation Dept
Mr. Sheng Zou
Assistant President
Mrs. Agnes Siew
Senior Vice President
Singapore Exchange
Dr. Rinjai Chaiyasut
Vice President
Stock Exchange of Thailand
Mr. Steve Wang
Taiwan Futures Exchange (TAIFEX)
Mr. Chin-Ho Liao
Junior Associate
Taiwan Futures Exchange (TAIFEX)
Mr. Chao-Zon Yang
Senior Executive Vice President
Mr. Tsuyoshi Otsuka
Representative and Deputy General Manager,
NY Rep. Office
Tokyo Stock Exchange, Inc.
Mr. Adam Maciejewski
Member of the Management Board
Mrs. Beata Jarosz
Member of the Management Board
Mr. Jing Zhang
Assistant President
Mr. Xueqin Wang
Senior Specialist of R&D Department
Mr. Guangpo Ji
Senior Specialist of R&D Department
Mr. Chao Zhang
Director of Clearing Department
Dr. Ghaleb Mahmassani
Vice Chairman
Beirut Stock Exchange
Mr. Kuo-Huei Ning
Senior Executive Vice President
GreTai Securities Market
Mr. Donald Calvin
Director
National Stock Exchange
Mr. Jacques der Megreditchian
Chairman of the Board of Directors
RTS Exchange
Mr. Andrey Salaschenko
Director of Dept of Interaction with
Authorities and Organizations
RTS Exchange
Speakers and guests
Mr. John Mathias
Consultant
Aequitas Associates
Mr. Steven M. Sears
Options Editor, Senior Special Writer
Barron’s
Mr. Jeromee Johnson
Vice President, Market Development
Head of BATS Options
BATS Exchange, Inc.
Mr. Andre Cappon
President
The CBM Group, Inc.
Mr. Stephan Mignot
Managing Director
The CBM Group, Inc.
Mr. Gary Gensler
Chairman
CFTC
Mr. Gaolong Han
China Securities Depositary and
Clearing Corp. Ltd - Shenzhen
Mr. Guobiao Xie
China Securities Depositary and
Clearing Corp. Ltd - Shenzhen
Mr. Andrew Kolinsky
President
Citadel Execution Services
Mr. Martin Mannion
Chief Operating Officer
Citadel Execution Services
Mr. Bernardo Mariano
Analyst
ERDesk
Mr. Michael Curcio
Executive Vice President and President,
E*TRADE Securities
Ms. Cora Klena
Sr. Manager, Corporate Communications
E*TRADE Securities
Mr. Ireneusz Lazor
Polish Power Exchange
Mr. Noel Dalzell
Vice President
E*TRADE Securities
Mr. Joseph Gawronski
President
Rosenblatt Securities Inc.
Ms. Maria Velentza
Head of Unit G3 (Securities Markets),
DG Internal Markets & Services
European Commission
Mr. Justin Schack
Director
Rosenblatt Securities Inc.
Mr. Patrick Pearson
Head of Financial Markets Infrastructure
European Commission
Mr. Theodore Lubke
Bank Supervision Group
Federal Reserve Bank of New York
Mrs. Judith Hardt
Secretary General
Federation of European Securities Exchanges
- FESE
Mr. Todd Hohman
Managing Director, Quant Vol Trading
Goldman Sachs
Mr. Didier Davydoff
President
IEM Finance
Mr. Garry O’Connor
International Derivatives Clearing Group
Mr. John J. Lothian
John J. Lothian Company
Mr. Kevin Gould
President
Markit
Mr. Adam Kansler
General Counsel
Markit
Ms. Karen Wuertz
Planning & Development
National Futures Association
Mr. Jianchuan Li
Shenzhen Securities Communication Co. Ltd
Ms. Munizeh Majid
Program Officer
(Safe Member Exchanges Affairs)
South Asian Federation of Exchanges
Mr. Kevin McPartland
Senior Analyst
TABB Group
Mr. Joshua Giordano
New York Representative
Tokyo Commodity Exchange
Ms. Elizabeth K. King
Associate Director,
Division of Trading & Markets
U.S. Securities and Exchange Commission
WFE
Mr. Thomas Krantz
Secretary General
Ms. Sibel Yilmaz
Corporate Communications Manager
2009 Derivatives market survey
Conducted by WFE
With the help of Didier Davydoff and Grégoire Naacke IEM Finance
May 2010
Contents
24 Introduction
24 Offers of derivatives
27 The global derivatives market
29 Exchange and products trends
30
44
51
55
A – Equity products
B – Interest rate products
C – Currency products
D – Commodity derivatives
62 Gathering statistics on retail trading
63 Clearing of derivatives transactions
65 Conclusion
Every effort has been made to ensure that the information in this survey is accurate at the time of printing, but the
Secretariat cannot accept responsibility for errors or omissions.
Introduction
This report is the result of the annual survey conducted by the World Federation of Exchanges for the International Options Markets
Association (IOMA) derivatives exchanges. This report deals with the trading of derivatives products and covers 52 exchanges. Some of these
exchanges trade in a wide range of derivatives contracts, while many specialize in a single area of the market. The survey results were analyzed
into seven groups representing underlying assets:
• Single equity
• Equity indices
• Exchange Traded Funds
• Short-term interest rates (STIR)
• Long-term interest rates (LTIR)
• Currencies
• Commodities
The survey was compiled from questionnaire responses sent by IOMA members as well as data from exchange websites. The authors wish to
thank exchanges which responded to the questionnaire and especially to exchange staff who gave further assistance in response to enquiries.
The report begins with an overview of the offering of exchanges in terms of listed products. The section “The Global Derivatives Market”
describes the overall developments in derivative volumes. The section “Exchange and Product Trends” examines volumes and value at each
exchange within each major product type. It shows changes from 2008 for all exchanges. The study ends with “Concluding Remarks”, which
raise further questions for consideration.
Offers of derivatives
The financial crisis has slowed the pace of financial innovation and in 2009 few exchanges have added new classes of underlyings to
their offerings of listed products. Only the Tel-Aviv Stock Exchange started trading in single equity options. Whereas several exchanges
introduced stock futures in previous years, this trend stopped and one exchange withdrew these products. Some changes also occurred in
the listing of STIR derivatives, with the Singapore Exchange dropping the options and Budapest Stock Exchange adding futures. Osaka Stock
Exchange newly listed FX margin contracts and some exchanges already active in currency derivatives launched new products, for example
six “E-micro” currency pairs were newly proposed by CME group to retail investors with contract sizes divided by ten compared to standard
currency futures. Eventually, the most significant move was the introduction of ETF options in Asia, a class of products which was previously
a specificity of the American markets (the only exception being Eurex): two Japanese exchanges, Osaka Stock Exchange and Tokyo Stock
Exchange introduced ETF options.
All three time zones have grown during the decade. Even though the Americas time zone is still the largest region (although much less than
before), the Asia - Pacific time zone share has grown significantly, while the EAME (Europe - Africa - Middle East) area has almost remained
stable.
Products added or dropped during 2009
Added
Stock options
Dropped
Stock futures
ETF options
MexDer
Osaka Stock Exchange, Tokyo Stock Exchange
STIR options
STIR futures
Singapore Stock Exchange
The average for the number of different product lines (excluding exotic products) is 4.5 and the median is 4. The Australian Securities
Exchange is the only exchange whose offers include all classes. At the other end of the spectrum, 10 exchanges offer only one class of
products, the majority being Asian exchanges offering commodity futures.
Exchanges have numerous projects for launching new types of contracts. Among exchanges that have answered the question relating to their
prospects for listing new products, 13 said they did plan on offering new products outside of their current asset classes during 2010 while 15
said the opposite. Most frequently cited classes of products are equity derivatives and exotic derivatives like futures and options on renewable
energy certificates. The Warsaw Stock Exchange has the most numerous projects, including equity and currency options, commodities futures,
metal futures and exotic futures.
CBOE intends to launch new dividends, volatility and variance derivatives, following the introduction in 2006 of the VIX options which have
been increasingly traded. After having launched Euro STOXX dividend index futures in 2008, Eurex also announced dividend futures on
individual stocks while NYSE Liffe will launch CAC 40 dividend futures.
Several exchanges announced or started trading in new commodities derivatives:
• CME Group has projects on GSCI crude oil and gold.
• Johannesburg Stock Exchange on gold, platinum, sweet crude oil futures.
• Eurex launched agricultural futures (mainly potatoes), gold and silver derivatives.
• BM&FBOVESPA will register OTC trades in flexible options on soybean futures.
• TAIFEX launched gold options on January 19th, 2009, and also have new product.
Number of product lines
0
RTS
Rofex
MICEX
Tokyo Grain Exchange
Shanghai Futures Exchange
One Chicago
Dalian Commodity Exchange
Central Japan Commodity Exchanges
Boston Options Exchange
Multi Commodity Exchange of India (incl. MCX‐SX)
Tokyo Financial Exchange Inc.
NYSE Arca Options
Mercado a Término de Buenos Aires
London Metal Exchange
ICE Futures Europe
ICE Futures Canada
Buenos Aires Stock Exchange
NYSE Amex
NASDAQ OMX PHLX
Wiener Börse
Turkish Derivatives Exchange
Thailand Futures Exchange (TFEX)
Oslo Børs
International Securities Exchange (ISE)
Bursa Malaysia
Borsa Italiana
Athens Derivatives
Singapore Exchange
Osaka Stock Exchange
MEFF
ICE Futures U.S.
Tokyo Stock Exchange Group
Chicago Board Options Exchange (CBOE)
TAIFEX
NASDAQ OMX Nordic Exchanges
Hong Kong Exchanges
MexDer
Korea Exchange
Montréal Exchange
Eurex
CME Group
NYSE Liffe (European markets)
BM&FBOVESPA
Australian Stock Exchange
1
2
3
4
5
6
7
8
9
10
List of product lines
• Single stock options
• Single stock futures
• Stock index options
• Single index futures
• ETF options
• STIR options
• STIR futures
• LTIR options
• LTIR futures
• Currency options
• Currency futures
• Commodity options
• Commodity futures
11
12
The global derivatives market
16.6 billion derivative contracts were transacted in 2009 on
exchanges worldwide (7.8 billion futures and 8.8 billion
options). The financial crisis translated into a slight decline
compared to 2008 (16.4 billion contracts). Such stabilization is
a break in the trend of uninterrupted growth recorded in all
previous years since 1998.
7.8
2009 worldwide
derivatives volume
16.6 billion contracts
traded
8.8
Options
Futures
Derivatives volume growth (billion contracts)
18
16
14
12
10
8
6
4
2
0
Options
2003
2004
2005
2006
Futures
2007
2008
2009
Total
For the first time, the futures market stopped growing in 2009. The growth rate was slightly positive for options (+3%) but was at his lowest
level since 2004.
Derivatives volume growth rate
40
34%
30
28%
20
23%
20%
19%
15% 16%
11% 10%
10
5%
11%
1%
Options
2005/04
13%
9%
3%
0
2004/03
13%
10%
2006/05
Futures
2007/06
2008/07
-0.34%
Total
2009/08
In previous years, the variation of global activity of derivatives exchanges was heavily influenced by the weight of the Korea Exchange in
equity index options trading. In 2009, KOSPI 200 options traded on the Korean market still accounted for a huge share (18%) of global trading
of derivatives on all underlying classes but their growth rate was at a similar level as the rest of the market.
Exchange and products trends
For the first time trading volumes of equity derivatives decreased in 2008 due to a small growth rate of options while futures showed a
negative growth rate.
As in 2008, negative growth rates were observed in all groups of interest rate products.
Currency derivatives surged (+48%), driven by futures traded in India.
Eventually, the growth of commodity derivatives accelerated. Two Chinese exchanges, the Dalian Stock Exchange and the Shanghai Futures
Exchange, strongly contributed to this growth. Alone they represented more than half of the global number of contracts traded in commodity
futures.
Contracts traded by product group (billion contracts)
Equity and interest rate
Currency and commodity
12
3.0
10
2.5
8
2.0
6
1.5
4
1.0
2
0.5
0.0
0
2003
Equity
2004
Interest rate 2005
2006
Currency
2009
2008
2007
Commodity
2009 volume and 2009/2008 growth rate
Single stock
Contracts traded (millions)
Growth rate of contracts traded
Stock index
ETF
STIR
LTIR
Currency
Commodities
Options
3 374
3 869
955
397
78
37
132
Futures
501
1 928
-
1 006
896
923
2 515
Options
2%
5%
11%
-9%
-33%
-37%
-14%
Futures
-39%
-16%
-
-21%
-29%
75%
54%
A – Equity products
Equity products still represent the dominant share of derivatives trading although their relative weight slightly decreased in 2009 to 64%
(against 67% in 2008). In 2009 equity derivatives developed during a period of declining volatility after record levels observed at the end of
2008.
Global equity indices volatility
(Annualized volatility of global indexes over 20 days)
120%
100%
80%
60%
40%
20%
0%
Feb. 05
Dow Jones
Jun. 05
Oct. 05
Feb. 06
Nikkei 225 Jun. 06
Oct. 06
Feb. 07
Dow Jones STOXX 600
Jun. 07
Oct. 07
Feb. 08
Jun. 08
Oct. 08
Feb. 09
Jun. 09
Oct. 09
Feb. 10
For the first time since 2002, the traded volumes in stock futures and stock index futures decreased in 2009. Stock options and index options
(including ETF options) grew at a slow pace.
Equity products volume growth (billion contracts)
Options
Futures
6.0
2.5
5.0
2.0
4.0
1.5
3.0
1.0
2.0
0.5
1.0
0.0
0
2003
Stock options 2004
Stock futures
2005
Index & ETF options
2006
2007
Index futures
2008
2009
Stock options
In 2009, the growth rate of trading volumes was insignificant following a decrease in 2008. This stabilization of the market represents a break
after several years of tremendous growth.
The United States continues to dominate the stock options market, with four of the world’s five most active exchanges (ISE, CBOE, NASDAQ
OMX PHLX and NYSE Arca Options).
In South America, BM&FBOVESPA surged in 2009 (+56%) and became the third biggest exchange in the world for its trading volumes.
Petrobas and Vale options remain the most actively traded stock options in the world.
In Europe, Spain experienced one of the strongest growths (+94%) but on all other European exchanges volumes decreased or remained
stable.
Most of the high growth rates in 2009 were observed in the Asia-Pacific region, whilst on the most important exchange in this region for stock
options, namely the Hong Kong Exchange, volumes decreased 13%. Volumes remained much smaller in Asia than in the Americas and Europe.
2009/2008 % Change in stock options volume
%
Korea Exchange
TAIFEX
MEFF(1)
BM&FBOVESPA
NYSE Amex
Borsa Italiana
NYSE Arca Options
NYSE Liffe (European markets)(1)
Montréal Exchange(1)
Australian Securities Exchange ((incl. SFE)(4)
Hong Kong Exchanges(1)
NASDAQ OMX PHLX
Boston Options Exchange(2)
Eurex(1)
MexDer
Wiener Börse
Oslo Børs
Athens Derivatives Exchange(3)
ALL EXCHANGES
-75
(2)
-25
0
25
50
75
100
125
150
4 576
844
649
94
56
41
27
5
2
1
0
-1
-1
-2
-11
-13
-20
-21
-22
-24
-26
-33
-41
-44
-44
-63
: Excluding OTC business registered on the exchange
: Including options on ETF
(3)
: Excluding REPOs
(4)
: Including LEPOs
(1)
-50
2
Stock options contract volume (millions)
0
Other exchanges
200
20
20
25
25
43
29
MEFF(1)
18
36
48
42
Eurex(1)
NYSE Amex
NYSE Arca Options
600
0.0
0.01
0.00
TAIFEX
0.01
0.01
0.04
0.02
MEFF(1)
0.04
0.06
Borsa Italiana
0.11
0.07
Montréal Exchange(1)
0.07
0.08
0.05
0.09
178
138
143
142
197
146
Australian Securities Exchange (incl. SFE)(3)
121
171
426
350
Eurex(1)
547
604
635
687
672
538
1.0
1.5
0.46
0.33
0.35
00.5
0.88
0.40
0.86
0.93
2.19
: Including LEPOs
(3)
NB: Notional values are not available for ISE, Buenos Aires, NYSE Amex, NYSE Arca Options, NASDAQ OMX PHLX.
Stock options contract volume by geographical zone (millions)
3 500
3 000
2 789
2 902
2 500
2 000
1 500
1 000
500
487 421
78
0
Americas
2008
2009
80
Asia - Pacific
3.0
0.26
0.20
: Including options on ETF
2.5
2008
2009
BM&FBOVESPA
(2)
2.0
0.17
0.13
271
274
BM&FBOVESPA
0.5
Other exchanges
2008
2009
NASDAQ OMX PHLX
(1)
800
69
72
Borsa Italiana
400
Stock options notional value (USD trillions)
Europe - Africa - Middle East
2.72
The most actively traded stock options in the world
Underlying equity
Contracts traded
(millions)
Exchange
Market
share
Option premium
(USD billion)
2009
2008
2009
2008
2009
2008
Vale R Doce PNA
BM&FBOVESPA
265.5
130.0
7.4%
3.7%
14.5
6.9
Petrobras PN
BM&FBOVESPA
260.8
210.2
7.2%
6.0%
12.7
14.5
Citigroup Inc.
CBOE
67.2
19.6
1.9%
0.6%
5.0
5.9
Citigroup Inc.
ISE
54.9
20.9
1.5%
0.6%
NA
NA
Bank of America
CBOE
40.5
11.9
1.1%
0.3%
4.7
3.6
Bank of America
ISE
28.3
NA
0.8%
NA
NA
NA
General Electric Company
CBOE
26.2
14.2
0.7%
0.4%
2.3
4.3
Citigroup Inc.
NASDAQ OMX PHLX
22.0
NA
0.6%
NA
NA
NA
General Electric Company
ISE
17.4
9.1
0.5%
0.3%
NA
NA
ING
NYSE Liffe
17.2
23.2
0.5%
0.7%
2.6
7.3
Allianz
Eurex
(2)
0.4%
1.5%
Bank of America
NASDAQ OMX PHLX
15.7
NA
0.4%
Apple Inc.
ISE
15.6
20.1
Apple Inc.
CBOE
13.4
JP Morgan
CBOE
12.8
Wells Fargo & Company
ISE
Royal Dutch Shell
NYSE Liffe
UBS
Eurex
10.6
Schweizerische Rückversicherung
Eurex
Mittal Steel
NYSE Liffe
(1)
Excluding OTC business registered on the exchange
(2)
9.1 (2)
NA
NA
NA
0.4%
0.6%
NA
NA
20.6
0.4%
0.6%
6.4
6.2
NA
0.4%
NA
2.6
NA
12.7
NA
0.4%
NA
NA
NA
10.9
12.6
0.3%
0.4%
1.9
3.2
(2)
0.3%
0.4%
10.3 (1)
9.5 (2)
0.3%
10.1
NA
0.3%
16.1
(2)
54.0
(1)
12.9
(1)
2.4
(2)
1.1
6.7 (2)
NA
0.4 (2)
NA
NA
2.7
NA
Including OTC business registered on the exchange
Several exchanges include a registration facility for OTC trades. In Europe, MEFF recorded very rapid growth of its OTC processing services on
individual stock options (+156%), but NYSE Liffe recorded a decline of its OTC processing services (-29%).
Stock options: OTC trades processed by exchanges
OTC contracts processed by exchanges as a percentage of
total contracts traded (OTC+ on-exchange)
Eurex
Hong Kong Exchanges
NYSE Liffe (Bclear)
MEFF
Montréal
Growth rate
Contracts traded
Notional value of
contracts traded
Number of trades
152
4%
52%
53%
3%
7
-16%
12%
8%
NA
41
-29%
17%
28%
0%
34
13
156%
49%
43%
8%
0.17
0.20
-16%
1%
NA
0%
2009
2008
158
5
29
Stock futures
After having grown more rapidly than other segments of the derivatives market in previous years, the stock futures market declined in 2009.
The annual growth rate was negative (- 39%).
The stock futures market remains located in both the Europe Africa region and in the Asia Pacific region. Due to a fivefold decrease of trading
volumes on the Johannesburg Stock Exchange, the Europe Africa region was overtaken by the Asia Pacific region. The relative decrease of
volumes on National Stock Exchange of India was offset in this region by the surge of the Australian Securities Exchange. In North America the
only exchange offering this class of products for trading is One Chicago where volumes remained modest.
2009/2008 % Change in stock futures volume
%
-60
-40
-20
0
20
60
80
100
120
3 698
Thailand Futures Exchange (TFEX)(1)
Korea Exchange
Borsa Italiana
MEFF(1)
Wiener Börse
One Chicago(4)
Eurex(1)
Oslo Børs
MexDer
ALL EXCHANGES
220
148
105
40
36
6
4
-4
-13
-26
-27
-29
-44
-58
-63
-80
-100
-39
(1)
: Including CFDs
(2)
: Excluding REPOs
(3)
Stock futures contract volume (millions)
0
: Including Stock Index and ETF Futures
(4)
Stock futures notional value (USD billions)
100 200 300 400 500
Other exchanges
7
5
One Chicago(4)
4
3
4
5
0
Other exchanges
2008
2009
250
26
2
1
3
16
7
7
5
Borsa Italiana
4
11
6
6
12
137
Korea Exchange
MEFF(1)
46
45
45
30
Borsa Italiana
32
48
431
69
MEFF(1)
142
226
161
: Including CFDs
(2)
: Excluding REPOs
(3)
: Including Stock Index and ETF Futures
(4)
750 1 000
2008
2009
6
13
Korea Exchange
86
500
9
5
(1)
40
90
59
1 001
968
Stock futures contract volume by geographical zone (millions)
700
600
509
500
400
307
300
340
200
158
100
4
0
3
Americas
2008
Asia - Pacific
2009
Regarding stock futures traded over-the-counter (OTC) and registered on the Exchanges in Europe, NYSE Liffe (Bclear) recorded rapid growth
(+64%), while annual growth for both Eurex and MEFF was negative (-10% and -25% respectively).
On Eurex, OTC trades represented a near totality of the overall trading volumes in stock futures.
Stock futures: OTC trades processed by exchanges
2009
2008
Growth rate
Contracts traded
Notional value of
contracts traded
Number of trades
Eurex
117
130
-10%
99.8%
99.7%
55%
NYSE Liffe (Bclear)
198
121
64%
99%
99.5%
68%
30
39
-25%
40%
41%
3%
MEFF
Index options
Like the equity options market, index options have experienced a slowdown in the growth of traded volumes after several years of rapid growth.
Nonetheless, the annual growth rate remained positive (+5% and +3% excluding figures for Korea).
Trends in 2009 varied considerably between markets in the western and eastern regions of the globe.
Volumes continued to increase in Korea, where 76% of the global volumes were traded in 2009. The number of traded contracts more than
doubled on the National Stock Exchange of India and on the Thailand Futures Exchange (TFEX). The National Stock Exchange of India thus
became the second market in the world in terms of number of contracts traded. The S&P CNX Nifty Index Options ranks second in the list of
the most actively traded index options in the world, behind the KOSPI 200. But given the small size of this contract, it ranks much lower in term
of value of the option premium paid. Positive growth rates in volumes were also observed on the Hong Kong Exchanges (+18%), the Australian
Securities Exchange (+17%) and the Osaka Stock Exchange (+9%).
In North America, Europe and Africa, all exchanges except the Warsaw Stock Exchange showed negative growth rates. Despite a fall of 25% of
its volume traded, the Dow Jones Euro STOXX 50 option ranks third in term of number of contracts exchanged and first for the value of
premium paid. The historical SP 500 options traded on CBOE remain the second most active contract in the world for the value of premium
paid. Furthermore some innovative products are still progressing despite the market turmoil. The most significant is the volatility index option
(VIX) that CBOE launched in 2006. VIX options regularly win market shares and in 2009 it was ranked eighth in the list of the most actively
traded index options in the world (against twelfth in 2008).
In South America, BM&FBOVESPA continued to grow rapidly.
2009/2008 % Change in index options volume
%
BM&FBOVESPA
Korea Exchange
Montréal Exchange
Chicago Board Options Exchange (CBOE)(4)
Eurex(1)
TAIFEX
MexDer
ICE Futures U.S.
Wiener Börse
CME Group
Borsa Italiana
NASDAQ OMX PHLX
MEFF(1)
Singapore Exchange
NYSE Amex
Oslo Børs
ALL EXCHANGES
-60
-20
0
20
40
60
80
100
120
113
109
33
28
18
17
9
6
-12
-14
-14
-14
-15
-20
-22
-23
-23
-24
-25
-26
-28
-28
-28
-29
-30
-33
-47
-51
-53
-55
(1)
-40
5
: Excluding REPOs
(2)
: Including LEPOs
(3)
: Volatility index options
(4)
Index options notional value (USD trillions)
Index options contract volume (millions)
0
Other exchanges
100
18
13
18
14
44
32
32
35
44
37
Eurex(1)
500
600
700
0
Other exchanges
TAIFEX
1.1
0.7
0.7
1.4
2.2
1.4
Eurex(2)
120
96
CME Group
259
223
Chicago Board Options
Exchange (CBOE)(4)
321
2 766
2 921
Korea Exchange
20
0.9
0.7
0.3
0.6
98
76
151
10
Hong Kong Exchanges (1)
81
62
Chicago Board Options
Exchange (CBOE)(2)
400
2008
2009
CME Group
TAIFEX
300
37
27
15
10
200
30
40
2008
2009
2.8
1.6
5.7
3.1
7.3
3.6
16.6
25.1
42.8
40.3
Korea Exchange
: Excluding OTC business registered on the exchange (2): Volatility index options
NB: Notional values are not available for ISE and Osaka Stock Exchange.
(1
Index options contract volume by geographical zone (millions)
3 500
3 000
2 766
2 921
2 500
2 000
1 500
1 000
500
336
289
277
442
293 229
0
Americas
2008
2009
Korea Exchange
Asia - Pacific (excl. Korea Exchange)
The most actively traded index options in the world
Contracts traded
(millions)
Underlying index
Exchange
Kospi 200
Korea Exchange
S&P CNX Nifty Index
NSE India
Euro Stoxx 50
Eurex
S&P 500
CBOE
TAIFEX
TA 25
Market share
in 2009
Option premium
(USD billions)
2009
2008
Total
Ex. Korea
2009
2008
2 921
2 766
69.4%
227.1%
202.1
257.9
321
151
24.9
17.1
7.6%
25.0%
(2)
7.1%
23.3%
155
179
3.7%
12.0%
TAIFEX
72
93
1.7%
5.6%
NA
NA
62
81
1.5%
4.8%
18.0
29.3
Nikkei 225
35
32
0.8%
2.7%
55.5
48.6
Volatility Index Options
CBOE
33
26
0.8%
2.6%
5.2
5.2
401
300
(2)
(2)
431.2
740.8(2)
403.5
621.3
FTSE 100 (incl. Index FLEX Options)
NYSE Liffe
33
31
0.8%
2.5%
76.3
90.7
S&P 500 and E-MINI S&P 500
CME Group
28
39
0.7%
2.2%
3 219.6
NA
DAX
Eurex
(2)
0.6%
2.0%
86.4
AEX
NYSE Liffe(2)
28
0.6%
1.9%
(2)
25
(1)
105
25
(1)
(2)
133.7(2)
19.4
33.5
: Including OTC business registered on the exchange
(2)
Regarding stock index options traded OTC and registered on exchange, the Hong Kong Exchanges with a 71% increase registered the fastest
annual growth rate.
Stock index options: OTC trades processed by exchanges
Stock exchange
2009
BM&FBOVESPA
Eurex
Hong Kong Exchanges
NYSE Liffe (Bclear)
MEFF
2008
Growth rate
Contracts traded
Notional value of
contracts traded
Number of trades
1.1
1.0
18%
37%
44%
12%
306
395
-22%
76%
76%
6%
3
1
90%
35%
33%
1%
26
23
11%
41%
53%
0%
3
6
-52%
38%
38%
2%
Index futures
As for single stock futures, the number of stock index futures traded decreased significantly in 2009 (-16%).
In the Americas, trading decreased 18%. In the United States, the world’s biggest exchange in terms of volumes traded, namely CME Group,
experienced one of the biggest decreases (-21%). However, CME Group still accounted for 37% of global volumes. On the contrary, the
number of trades increased 132% on ICE Futures U.S, but this exchange is still a minor player for this class of contracts in the US. In Canada,
the growth rate was negative (-12%). In South America, volumes decreased, by 5% on the biggest exchange, BM&FBOVESPA, but increased
4% on MexDer.
In the Europe, Africa and Middle East region, volumes decreased 16%. The sharpest decrease was observed on Eurex (-23%) so that the market
share in Europe of this Exchange dropped from 65% in 2008 to 60% in 2009. The second most active exchange in the region, namely NYSE
Liffe, decreased 12%. Four exchanges had positive growth rates in 2009, namely Tel-Aviv Stock Exchange, Turkish Derivatives Exchange,
Warsaw Stock Exchange and Wiener Börse.
In Asia, volumes remained stable. The two biggest exchanges, National Stock Exchange of India and Osaka Stock Exchange had negative
growth rates (-3% and -1% respectively) but the decrease was much less pronounced than the one observed on other large exchanges for
index futures. Moreover, three Asian exchanges showed vivid growth, the Taiwan Futures Exchange, the Thailand Futures Exchange and the
Korea Exchange. The latter climbed to third place in the world for the notional value of its trading.
2009/2008 % Change in index futures volume
%
ICE Futures U.S.
TAIFEX
Korea Exchange
Wiener Börse
MexDer
Chicago Board Options Exchange (CBOE)(4)
BM&FBOVESPA
Montréal Exchange
Singapore Exchange
MEFF(1)
Borsa Italiana
CME Group
Eurex(1)
Bursa Malaysia
Oslo Børs
ALL EXCHANGES
-100
-75
-50
-25
25
50
75
100
294
132
61
30
25
20
9
7
4
0
-1
-2
-3
-5
-5
-12
-13
-13
-14
-15
-16
-16
-19
-19
-20
-21
-23
-32
-89
-100
-13
: Excluding OTC business registered on the exchange (2): Including CFDs
(1)
0
: Excluding REPOs
(3)
: Volatility index futures
(4)
Index futures contract volume (millions)
0
Other exchanges
200
400
600
Index futures notional value (USD trillions)
0
800
59
42
2008
2009
10
Other exchanges
0.8
0.2
0.1
0.2
12
13
19
16
0.5
0.3
19
17
Montréal Exchange
0.6
0.4
BM&FBOVESPA
30
29
BM&FBOVESPA
0.7
0.5
39
34
Borsa Italiana
1.1
0.6
ICE Futures U.S.
17
39
MEFF(1)
1.3
0.7
TAIFEX
32
41
1.0
0.8
43
42
0.9
0.8
Singapore Exchange
60
52
TAIFEX
1.0
1.2
40
65
Korea Exchange
66
83
101
85
131
130
CME Group
708
2.8
4.1
8.2
4.7
5.6
6.0
29.2
15.9
33.3
: Excluding OTC business registered on the exchange (2): Including CFDs
NB: Notional values are not available for ICE Futures US and Singapore Exchange.
(1)
Index futures volume by geographical zone (millions)
1 000
952
800
782
684
600
571
575
571
400
200
0
Americas
2008
2009
Asia - Pacific
50
5.3
3.5
CME Group
898
40
2008
2009
Eurex(1)
439
336
Eurex(1)
30
2.1
1.4
Korea Exchange
202
196
20
54.6
OTC registration of stock index futures decreased everywhere except for NYSE Liffe (Bclear) (+52%).
Stock index futures: OTC trades processed by exchanges
Stock exchange
2009
2008
Growth rate
Contracts traded
Notional value of
contracts traded
Number of trades
59
73
-19%
15%
12%
0%
1
2
-14%
3%
3%
0%
Eurex
Hong Kong Exchanges
NYSE Liffe (Bclear)
MEFF
8
5
52%
9%
10%
0%
0.7
1.3
-49%
7%
10%
0%
ETF options
Trading on ETF options increased 11% in 2009. The ETF options market remains mainly a US market, with very low volumes in Europe (Eurex
and NYSE Liffe) and in Asia. This reflects the uneven development of the underlying market of ETFs which first appeared at the beginning of
the 1990’s in the US, and only ten years later in Europe. Moreover, the European market is still fragmented with several issuers competing on
the same product. For example, there are 32 different ETFs on the Dow Jones Euro STOXX 50 index.
In the United States, ETF options decreased less than index options in 2009. Volumes decreased 16% on CBOE (against 19% for index
options), 9% on the International Securities Exchange (against 26% for index options) and 2% on NYSE Amex (against 53% for index options).
The third most active exchange in the United States for ETF options trading, namely NYSE Arca options, increased 1%.
ETF options are also traded on BM&FBOVESPA and Montréal Exchange, but volumes are very small compared to the United Sates.
2009/2008 % Change in ETF options volume
%
-100
-75
-50
-25
0
25
50
Australian Securities Exchange (incl. SFE)
4 100
BM&FBOVESPA
1 300
Montréal Exchange
174
NYSE Arca Options
1
NYSE Amex
-2
Hong Kong Exchanges
-2
-16
-9
Eurex
ALL EXCHANGES
-73
-99
11
ETF options contract volume (millions)
0
Other exchanges
Montréal Exchange
100
NYSE Arca Options
200
0
0
250
300
350
0
Other exchanges
2008
2009
1
3
Montréal Exchange
79
77
NYSE Amex
NASDAQ OMX PHLX
150
ETF options contract value (USD billions)
NA
500 1 000 1 500 2 000 2 500
3.2
0.8
1.8
19.6
2008
2009
1 655
2 408
175
146
148
301
274
277
330
NB: Notional values are not available for NYSE Amex, NYSE Arca Options and ISE.
ETF options contract volume by geographical zone (millions)
1 000
955
856
800
600
400
200
0.34
0.12 0.12
0
Americas
2008
Asia - Pacific
0.01
2009
The most actively traded ETF options in the United States
Contracts traded
(millions)
Market
share
2009
2008
2009
2008
S&P 500 ETF Options
348
321
49.6%
37.8%
PowerShares QQQ ETF Options
148
222
21.1%
26.1%
Financial Select Sector SPDR ETF Options
88
120
12.6%
14.1%
iShares Russell 2000 ETF Options
73
152
10.5%
17.9%
iShares MSCI Emerging Markets ETF Options
44
35
6.2%
4.1%
* Including CBOE, ISE, NYSE Arca, NYSE Amex and NASDAQ OMX PHLX
B – Interest rate products
Trading in all types of interest rate products diminished in 2009 for the second consecutive year.
Overall, traded volumes were down 23%, the largest decline for the year being on long term interest rate options.
Interest rate products volume growth (billion contracts)
Futures
Options
1.6
0.8
1.4
0.7
1.2
0.6
1.0
0.5
0.8
0.4
0.6
0.3
0.4
0.2
0.2
0.1
0.0
0.0
2003
STIR futures
2004
STIR options 2005
LTIR futures
2006
2007
2008
2009
LTIR options
STIR options and futures
Since the last quarter of 2008 Short Term Interest Rate derivatives have been evolving in a context of near-zero Central Banks’ interest rates.
The market decline for STIR derivatives accelerated in 2009, with options decreasing 9% and futures down 21%. However, the two largest
markets showed contrasting trends. The Eurodollar options and futures traded on CME Group decreased sharply, 30% and 27% respectively.
Meanwhile, the contracts traded on NYSE Liffe either increased slightly (options: +2%) or decreased less (futures: -12%). NYSE Liffe overtook
CME Group as the world’s most active market for STIR options. The fall in liquidity of STIR options traded on CME Group translated into a
39% decrease of the open interest at the end of 2008 compared to the end of 2007. Open interest only partly recovered in 2009. Open
interest also fell on futures in 2008, but it returned to normal levels on Eurex, while it worsened on CME Group.
Most trading in the CME Group is concentrated on Eurodollar futures which remain the most active STIR contracts in the world despite a fall
from 597 million to 437 million contracts. Eurodollar options are also still the most active STIR options globally, but the Euribor options follow
just behind.
The resistance of the NYSE Liffe options is attributable to the Three Months Euribor and Euribor Mid Curve contract which grew by more than
20% while Three Months Sterling contracts declined. Conversely, the Euribor futures declined while sterling futures remained stable.
Other markets offering STIR options include BM&FBOVESPA whose options more than doubled in 2009 while futures diminished. On MexDer
the LTIR introduced in 2007 overtook STIR futures.
All other exchanges where STIR options are traded declined.
a) STIR options
2009/2008 % Change in STIR options volume
%
BM&FBOVESPA
Montréal Exchange
CME Group
ALL EXCHANGES
-100
-75
-50
-25
100
Other exchanges
2
0
1
1
25
50
75
100
125
385
111
86
2
-17
-30
-87
-97
-9
STIR options contract volume (millions)
0
0
200
STIR options notional value (USD trillions)
300
0
2008
2009
100
Other exchanges
0.25
0.03
Montréal Exchange
0.26
0.21
200
300
2008
2009
21
45
BM&FBOVESPA
CME Group
161
187
190
CME Group
229
229
161
234
221
NB: Notional values are not available for Tokyo Financial Exchange Inc.
STIR options contract volume by geographical zone (millions)
300
250
250
206
200
187 191
150
100
2
0
Americas
2008
2009
0
Asia - Pacific
b) 2009/2008 % Change in STIR futures volume
%
-100
BM&FBOVESPA
Montréal Exchange
CME Group
MexDer
Bursa Malaysia
Tokyo Financial Exchange Incl.
Eurex(1)
Singapore Exchange
TAIFEX
ALL EXCHANGES
-90
-80
-70
-60
-50
-40
-30
-20
-10
0
-10
-12
-18
-23
-25
-27
-32
-35
-42
-43
-71
-89
-89
-21
(1)
STIR futures contract volume (millions)
0
Other exchanges
Montréal Exchange
100
10
8
17
14
24
18
CME Group
500
0
600
Other exchanges
400
2008
2009
22
13
BM&FBOVESPA
300
2
1
Tokyo Financial Exchange Incl.
MexDer
200
STIR futures notional value (USD trillions)
Montréal Exchange
9
7
BM&FBOVESPA
9
8
62
42
189
170
342
302
438
100 200 300 400 500 600
1.6
0.9
598
NB: Notional values are not available for Tokyo Financial Exchange Inc. and NASDAQ OMX Nordic Exchange.
CME Group
2008
2009
24
17
335
438
439
599
STIR futures contract volume by geographical zone (millions)
1 000
900
859
800
700
658
600
500
400
359
300
316
200
100
47
0
Americas
2008
31
Asia - Pacific
2009
LTIR options and futures
Among all classes of products, the decline of long term interest rate products was the worst in 2009. The crisis of confidence triggered by
Lehman’s collapse had a very significant negative impact on the liquidity of the market. The global open interest in LTIR options and futures at
the end of 2008 had fallen 45% and 35% respectively compared to the end of 2007. The market went through a quieter period over 2009 but
the open interest in futures did not increase significantly during the year and the increase of 22% in the open interest in options was not
sufficient to recover to the levels observed before the crisis.
This unfavorable trend mainly reflects the situation of the largest markets, Eurex and CME Group, where options traded declined 32% and
36% respectively, while futures declined 4% and 33% respectively. Meanwhile, smaller market places grew rapidly: Johannesburg Stock
Exchange, NYSE Liffe, and ASX for options; Bursa Malaysia, Korea Exchange and Johannesburg Stock Exchange for futures.
Despite the decline of their recorded volumes, EUREX and CME Group still hold an overwhelming market share for LTIR derivatives trading
globally, amounting to 93% for options and 89% for futures. The Euro-Bond futures on Eurex and the 10 Year Treasury Note futures on CME
kept their leading position globally although volumes decreased by more than one quarter for the second consecutive year.
In the Americas, LTIR options are also traded on the Montréal Exchange, the Buenos Aires Stock Exchange and CBOE but volumes are low. As
far as LTIR futures are concerned, volumes traded on other exchanges in the Americas decreased in Montréal, on BM&FBOVESPA and on
MexDer.
In the Europe, Africa and Middle East region it is also worth noting that the surge in the number of LTIR futures recorded on the Johannesburg
Stock Exchange in 2008 continued in 2009 with a 174% increase in volumes.
In the Asia Pacific region, only two exchanges list LTIR options, namely the Tokyo Stock Exchange and the Australian Securities Exchange: the
latter recorded a sharp increase (especially in terms of notional value) while the former remained stable. As for futures, the Korea Exchange
continued its momentum from the previous year, while ASX, Singapore Exchange and Tokyo Stock Exchange recorded lower volumes again.
a) LTIR options
2009/2008 % Change in LTIR options volume
%
-100
-75
Eurex(1)
CME Group
Montréal Exchange
ALL EXCHANGES
-50
-25
0
25
50
75
100
125
174
62
56
-0.38
-32
-36
-47
-52
-33
(1)
LTIR options contract volume (millions)
0
Other exchanges
20
1
2
2
2
CME Group
60
80
0.1
0.5
Eurex(1)
40
LTIR options notional value (USD trillions)
100
0
Other exchanges
2008
2009
Eurex(1)
10
0.1
0.2
20
30
40
2008
2009
2
2
14
10
63
98
CME Group
47
27
(1)
NB: Notional values are not available for Tokyo Stock Exchange Group.
LTIR options contract volume by geographical zone (millions)
120
100
98
80
63
60
40
20
14
4
0
Americas
2008
2009
5
Asia - Pacific
10
b) LTIR futures
2009/2008 % Change in LTIR futures volume
%
-100
Bursa Malaysia
MEFF(1)
Korea Exchange
MexDer
Singapore Exchange
Montréal Exchange
Eurex(1)
CME Group
TAIFEX
BM&FBOVESPA
ALL EXCHANGES
-75
-50
-25
0
25
50
220
148
29
26
20
-1
-4
-13
-16
-28
-29
-31
-33
-36
-78
-81
-29
(1)
LTIR futures contract volume (millions)
0
Other exchanges
Singapore Exchange
100
200
300
LTIR futures notional value (USD trillions)
400
1.0
0.8
500
600
700
0
2008
2009
0.8
0.7
Other exchanges
0.14
0.06
Montréal Exchange
0.69
0.47
MexDer
3
3
Korea Exchange
2
2
Montréal Exchange
7
5
3
3
8
6
5
4
11
7
Korea Exchange
16
20
Eurex(1)
26
25
CME Group
Eurex(1)
CME Group
39
34
383
412
536
615
NB: Notional values are not available for Singapore Exchange, NASDAQ OMX Nordic Exchange.
(1)
50
100
150
200
2008
2009
10
7
59
86
97
165
LTIR futures contract volume by geographical zone (millions)
700
626
600
571
500
420
400
414
300
200
100
67
62
0
Americas
2008
2009
Asia - Pacific
C – Currency products
Due to the very rapid development of currency futures in India, currency derivatives experienced the highest growth rate in 2009 (+63%)
when compared to other segments of the derivatives market. However, when National Stock Exchange of India and Multi Commodity
Exchange of India are excluded from the statistics, the growth rate of traded volumes in 2009 is negative (-10%).
With 37 million contracts traded in 2009, currency options remain the smallest segment of organized markets.
Currency products volume growth (billion contracts)
Futures
Options
1.0
0.10
0.8
0.08
0.6
0.06
0.4
0.04
0.2
0.02
0
0.0
2003
Currency futures
2004
Currency options
2005
2006
2007
2008
2009
a) Currency options
The growth rate of currency options volumes was negative in 2009 for all the stock exchanges except Montréal Exchange.
With 58% of traded currency options worldwide, BM&FBOVESPA remains the leading exchange for this category of product in terms of
contract volumes. Nevertheless, contracts are smaller than those traded on CME Group which dominates the market in terms of notional value.
In the Europe, Africa and Middle East region, the most active exchange was the Tel-Aviv Stock Exchange with 8.1 million contracts traded in
2009.
There is no trading on currency options in the Asia Pacific region at present.
2009/2008 % Change in currency options volume
%
-100
-75
-50
-25
0
25
Montréal Exchange
50
26
-3
CME Group
-19
-26
BM&FBOVESPA
-29
-49
NASDAQ OMX PHLX
-68
-80
-87
ALL EXCHANGES
-37
Currency options contract volume (millions)
0
Other exchanges
NASDAQ OMX PHLX
CME Group
BM&FBOVESPA
5
10
15
20
25
0.5
0.3
Currency options notional value (USD billions)
30
35
2008
2009
1.7
0.3
0
Other exchanges
0.4
0.4
0.7
1.2
BM&FBOVESPA
5.5
250
7
6
500
750
2008
2009
28
17
3.9
5.6
4.5
CME Group
8.1
11.0
21.6
30.6
NB: Notional values are not available for ISE, Johannesburg Stock Exchange, NASDAQ OMX PHLX, Tel-Aviv Stock Exchange.
643
851
Currency options volume by geographical zone (millions)
50
42
40
30
28
20
17
10
10
0
Americas
2008
2009
b) Currency futures
Regarding currency futures, the most significant feature of 2009 was the surge of Indian exchanges: Multi Commodity Exchange of India,
which began trading in October 2008, and the National Stock Exchange of India. Both exchanges rose to the forefront of global trading only a
few months after this product line was launched. However the size of contracts traded in India is small compared to American standards. And
in terms of notional value, they still lag far behind the two leaders, which are the CME Group in first place followed by BM&FBOVESPA in
second place. In terms of notional value, the CME Group has retained its leadership with an 82% share of the world market.
In Europe, RTS surged to the top with 36 million contracts traded on its derivatives division (FORTS). FORTS dollar/ruble futures are increasingly
traded by retail investors and algorithmic traders, while MICEX, the other Russian derivatives exchange, is mostly an interbank market. RTS also
listed euro/dollar and euro/ruble futures in February 2009. The euro/dollar contract was more successful than the euro/ruble contract, and
market participants tended to simultaneously use both dollar/ruble and euro/dollar contracts to hedge the euro/ruble exchange rate.
2009/2008 % Currency futures volume
%
Multi Commodity Exchange of India
(incl. MCX‐SX)(3)
Korea Exchange
RTS
Rofex
CME Group(1)
BM&FBOVESPA
MexDer
MICEX
ALL EXCHANGES
-50
-25
0
25
50
75
100
2 427
1 877
876
508
161
96
63
22
22
14
0.31
-2
-14
-23
-49
-87
74
: Excluding OTC business registered on the exchange (2): Including CFDs (3): Began trading in October 2008
Source : Alexandre Balabushkin, «The return of the ruble», Swiss Derivatives Review, issue 42, Spring 2010
(1)
Currency futures contract volume (millions)
0
50
7
3
1
7
9
8
14
14
MICEX
18
Korea Exchange
14
7
250
0
2008
2009
5
0.01
0.22
Korea Exchange
0.35
0.55
BM&FBOVESPA
10
15
0.03
0.04
132
4.32
3.36
20.54
19.48
42
43
88
71
152
153
CME Group(1)
9
224
11
(1)
226
: Began trading in October 2008
(2)
Currency futures volume contract by geographical zone (millions)
700
600
565
500
400
300
288 273
200
169
100
71
82
0
Americas
2008
2009
25
2008
2009
CME Group(1)
67
20
36
BM&FBOVESPA
200
42
51
Rofex
(incl. MCX‐SX)(2)
150
Other exchanges
Other exchanges
RTS
100
Currency futures notional value (USD trillions)
Asia Pacific
D – Commodity derivatives
The growth of the commodity future markets accelerated again in 2009 at an annual rate of 54%. Commodity options, which are much less
actively traded than futures decreased for the first time, down 14%.
Commodity products volume growth (billion contracts)
Futures
Options
2.7
0.18
1.8
0.12
0.9
0.06
0.0
0.0
2003
Commodity futures
2004
2005
Commodity options
2006
2007
2008
2009
2009/2008 % Change in commodity options volume
%
-75
ICE Futures Canada
ICE Futures Europe
BM&FBOVESPA
CME Group (incl. OTC)
ICE Futures U.S.
ALL EXCHANGES
-50
-25
0
25
50
75
306
174
52
52
6
0
-9
-18
-26
-36
-63
-14
Commodity options contract volume (millions)
0
Other exchanges
20
80
100
120
140
0
Other exchanges
2008
2009
2
2
1
4
TAIFEX
7
6
ICE Futures U.S.
60
2
2
TAIFEX
40
Commodity options notional value (USD billions)
0
250
500
750 1 000
6
6
2008
2009
NA
34
705
384
6
CME Group (Ex. OTC)
17
11
102
NA
937
124
NB: Notional values are not available for BM&FBOVESPA, ICE Future Europe, Mercado a Término de Buenos Aires and ICE Future US.
Commodity options contract volume by geographical zone (millions)
180
160
144
140
120
118
100
80
60
40
20
0
0
Americas
2008
2009
6
Asia Pacific
10
8
b) Commodity futures
CME Group lost its first position for the trading of commodity futures, as it was overtaken by the Dalian Commodity Exchange and matched
by the Shanghai Futures Exchange. However the CME Group still holds the leader position in terms of notional value traded because the size of
contracts on the new emerging markets tends to be lower than in traditional exchanges in America or Europe. But it should be noted that the
Zhengzhou Commodity Exchange is progressing very rapidly in terms of notional value traded. It already represented about a quarter of the
notional value recorded on the CME Group.
The Asia Pacific region became the most active of the three regions for trading commodity futures in 2008 for the first time. In 2009 it
increased its lead over other markets: Overall volumes in Asia represented about twice the volumes recorded on all other exchanges in the two
other regions.
2009/2008 % Change in commodity futures volume
%
-100
-75
-50
-25
0
25
50
75
316
216
210
166
120
71
Bursa Malaysia
33
ICE Futures Europe
8
ICE Futures Canada
6
2
0.64
0.73
0.57
ICE Futures U.S.
-9
-10
Korea Exchange
-12
-14
TAIFEX
-38
BM&FBOVESPA
-39
-43
Central Japan Commodity Exchanges
-46
-48
Eurex
ALL EXCHANGES
(1)
100
-89
54
Commodity futures contract volume (millions)
0
Other exchanges
100
12
11
14
14
400
500
600
700 800
0
2008
2009
13
24
BM&FBOVESPA
44
23
43
28
TAIFEX
60
38
Bursa Malaysia
64
64
106
107
86
ICE Futures Europe
152
165
CME Group(1)
140
1 026
1 399
NA
435
4 669
9 538
7 023
513
516
2008
2009
214
203
223
227
146
1 000 2 000 3 000 4 000 5 000
Other exchanges
43
39
(incl. MCX‐SX)
300
29
22
ICE Futures U.S.
200
Commodity options notional value (USD billions)
313
834
(1)
NB: Notional values are not available for Central Japan Commodity Exchange, ICE Future Canada, Tokyo Grain Exchange, Mercado a Término de Buenos Aires,
ICE Future US, London Metal Exchange, ICE Future Europe, Shanghai Futures Exchange and Multi Commodity Exchange of India (includes MCX‐SX).
Commodity futures contract volume by geographical zone (millions)
2 000
1 656
1 600
1 200
800
782
577 575
400
272 284
0
Americas
2008
2009
Asia - Pacific
Energy futures
As in previous years, most energy derivatives trading is concentrated on two exchanges, CME Group and ICE Futures Europe. In Asia, Multi
Commodity Exchange of India and the Shanghai Futures Exchange both recorded fast growing figures.
2009/2008 % Change in energy futures volume
%
-100
-75
-50
-25
0
25
50
49
24
CME Group (excl. OTC)
13
ICE Futures Europe
8
-100
Eurex
-100
ALL EXCHANGES
21
Energy futures contract volume (millions)
0
100
0.2
0.0
300
2008
2009
0.1
0.1
31
46
21
52
200
0.01
0.0
ICE Futures Europe
100
145
Eurex
75
152
165
201
227
Metal futures
Trading on metal derivatives tends to concentrate on one exchange in each region: the London metal Exchange, CME Group and the Shanghai
Futures Exchange.
The landscape is changing rapidly: the most actively traded contract is the Steel Rebar Future, which was launched by the Shanghai Futures
Exchange in March 2009. Several other contracts listed in Shanghai showed an exponential growth. Copper futures tripled and ranked second
in the world.
2009/2008 % Change in metal futures volume
%
-50
-25
0
25
50
75
100
574
400
Hong Kong Exchanges
120
47
Korea Exchange
37
1
-5
TAIFEX
BM&FBOVESPA
-38
-50
ALL EXCHANGES
Metal futures contract volume (millions)
0
Other exchanges
TAIFEX
Multi Commodity Exchange of
India (incl. MCX‐SX)
100
0.02
0.4
300
2008
2009
5
3
53
51
64
94
106
107
200
59
296
91
Agricultural futures
Agricultural derivatives are the most actively traded commodity derivatives.
As already mentioned in previous IOMA derivatives surveys, agricultural derivatives markets remain less developed in Europe than in the
Americas and Asia. The revision of the European Common Agricultural Policy scheduled for 2013 will probably increase the risk exposure of
farmers and agro industries, a trend that should stimulate hedging on derivatives markets.
2009/2008 % Change in agricultural futures volume
%
-50
Bursa Malaysia
ICE Futures Canada
ICE Futures U.S.
Korea Exchange
BM&FBOVESPA
ALL EXCHANGES
-25
0
25
50
75
100
216
166
92
33
6
2
1
-9
-9
-10
-14
-16
-39
-43
-54
65
Agricultural futures contract volume (millions)
0
Other exchanges
100
2
2
Bursa Malaysia
3
4
BM&FBOVESPA
3
2
ICE Futures Canada
3
4
8
5
12
11
14
14
ICE Futures U.S.
43
39
47
300
400
0.1
0.1
200
500
600
700
800 900
2008
2009
89
168
154
223
227
313
834
Gathering statistics on retail trading
Like last year, exchanges were asked about the share of retail investors in trading activity. The table below summarizes answers received. Very
few changes were observed compared to 2008. Equity and index options are usually more traded by private investors than futures. However,
several exchanges (MEFF, Singapore Exchange and Osaka Stock Exchange) succeeded in attracting significant interest from retail investors in
futures contracts.
Exchange
Share of retail trading (2009)
Athens Derivatives Ex.
30%
BM&F
7.97%
8%
Montréal Exchange
Equity and ETF options: significant Futures: insignificant
Equity and ETF options: significant Futures: insignificant
BOVESPA
68.56% (options)
63% (options)
Bursa Malaysia
0.65
CBOE
25% to 35% : Higher in ETF & Equity
options & lower in Cash Index, Volatility & futures contracts
25% to 35%
Eurex
less than 10%
Less than 5%
Hong Kong Exchange
23%
17%
ISE
50% (Estimated value)
50% (approximately)
MEFF
Mini-Futures: 70 to 80%
Other products: 5 to 15%
Mini-Futures: 70 to 80%
Other products: 5 to 15%
NYSE Arca
Share of retail trading (2008)
0.3
All Security Options Put: 25.3%;
All Security Options Call: 5.7%;
Equity Options Put: 17%;
Equity Options Call: 13%
Singapore Exchange
Negligible
Negligible
TAIFEX
44.39%
39%
Thailand Futures Exchange
60%
57%
Tokyo Stock Exchange
Very small
Very small
Futures: 52%
Options: 65%
Futures: 54%
Options: 59%
Clearing of derivatives transactions
For the second year running data was gathered from clearing organizations.
In the Americas, the Options Clearing Corporation is the world’s largest equity derivatives clearing organization. The OCC’s participant
exchanges include: the Boston Options Exchange, Chicago Board Options Exchange, International Securities Exchange, NASDAQ OMX PHLX,
NYSE Amex and NYSE Arca.
Regulators increased pressure to impose the clearing of OTC trades on credit derivatives. In March 2009, ICE Trust, a subsidiary of the
InterContinental Exchange (ICE), began to clear CDSs, starting with the North American Markit CDX indexes, single-name CDSs being expected
in the following months. ICE Trust’s offer is based on the expertise of Creditex, an interdealer broker it acquired recently. Its membership is
open to buy-side and sell-side institutions. In March 2009, ICE Trust cleared index 600 index CDS trades for a notional amount of 70 billion
dollars.
ICE also intends to develop a specialized CDS clearing house for European-based products, such as Markit iTraxx indexes. For its part, CME
(through its recently acquired ClearPort platform) and the hedge fund Citadel got authorization from the SEC to create a clearing house for
CDSs, named CMDX.
1 393 (28%)
1 407 (29%)
Equity derivatives
clearing in America
in 2008
(contracts single
counted - millions)
The Options Clearing Corporation
Other exchanges (100% cleared home)
3 546 (72%)
Equity derivatives
clearing in America
in 2009
(contracts single
counted - millions)
3 512 (71%)
The Options Clearing Corporation
Other exchanges (100% cleared home)
In the Europe, Africa and Middle East region, the two largest clearing organizations are Eurex and LCH.Clearnet. Eurex clearing house clears the
Eurex on-exchange trades as well as an important part of OTC trades. LCH.Clearnet’s main activity is the clearing NYSE Liffe trades onexchange and OTC trades via Bclear. The other stock exchanges have their own clearing houses that clear 100% of the trades on-exchange.
Following pressure from the European Commission, nine international banks committed to set up a euro area based clearing facility for their
OTC trades. In December 2008, NYSE Liffe added CDSs to the range of products that can be registered on its OTC service (Bclear) and cleared
by LCH.Clearnet.Ltd. NYSE Liffe CDS contracts are based on Markit iTraxx Europe indexes. LCH.Clearnet SA, based in Paris also announced
plans to launch the clearing of euro area CDSs and Eurex announced an initiative to include CDS in its clearing offer. In March 2009, the ISDA
announced a standardization of CDS contracts that should facilitate the clearing process.
505 (22.4%)
Eurex (OTC)
640 (52%)
Equity and index cleared
in Europe, Africa, Middle
East in 2009
(contracts single
counted - millions)
Liffe (OTC)
261 (49.6%)
1 219 (54.2%)
Eurex (Non-OTC)
579 (48%)
526 (23.4%)
Liffe (Non-OTC)
265 (50.4%)
EUREX
Liffe
Other exchanges
885 (30.8%)
Eurex (OTC)
750 (49.8%)
Liffe (OTC)
191 (39.6%)
Liffe (Non-OTC)
291 (60.4%)
Equity and index cleared
in Europe, Africa, Middle
East in 2008
(contracts single
counted - millions)
1 506 (52.4%)
482 (16.8%)
EUREX
Liffe
Other exchanges
In the Asia Pacific region, all Stock Exchanges have their own clearing houses that clear 100% of the on-exchange trades.
Eurex (Non-OTC)
757 (50.2%)
Conclusion
The financial crisis had triggered a marked slowdown of derivatives markets in 2008. The crisis continued and deepened for certain types of
contracts in 2009. Index futures had only started to slow down at the fall of 2008, the year 2009 ended with a negative performance of 16%.
LTIR derivatives have plunged in an even more acute crisis with trading volumes declining by one third and open positions being dramatically
reduced. On the contrary, commodity futures continued to grow rapidly in 2009 as in 2008.
Single stock
Contracts traded
(millions)
Growth rate of
contracts traded
Stock index
ETF
857
STIR
LTIR
Currency
Commodity
Options
3 313
3 685
439
116
59
154
Futures
819
2 287
1 266
1 264
528
1 631
Options
-9%
4%
-6%
-9%
39%
16%
Futures
40%
38%
-17%
-14%
65%
45%
Contracts traded
(millions)
Growth rate of
contracts traded
Single stock
Stock index
ETF
STIR
LTIR
Currency
Commodity
Options
3 374
3 869
955
397
78
37
132
Futures
501
1 928
-
1 006
896
923
2 515
Options
2%
5%
11%
-9%
-33%
-37%
-14%
Futures
-39%
-16%
-
-21%
-29%
75%
54%
The overall financial and economic situation resulted in a slowdown in all segments of market activity, including exchanges. However, one
should take into account several positive trends:
• The liquidity of organized derivatives markets may have diminished. But, unlike other segments of the market, such as the interbank
monetary market, it never disappeared.
• The turnaround observed in 2009 will probably not end in 2010. The monthly volumes for the first three months of 2010 do not show any
significant change in trading volumes on equity and bond derivatives markets (see graph below). However this turnaround came after several
years of continuous and vivid growth. Derivatives markets are more and more utilized by economic players, and this fundamental trend is not
definitively interrupted. Although some categories of market participants suffered from a reduced leverage (especially hedge funds) the
number of exchange members did not diminish significantly.
• Some time is necessary before projects launched by clearing organizations to extend the scope of their services are implemented. A
significant portion of OTC trading in vanilla products, like index options, has already been transferred to exchanges. The OTC equity options
business has also declined in a number of countries. A higher proportion of trades are executed on-exchange where possible. Even among the
services offered by exchanges, the crisis translated in a switch from facilities for registering and clearing of OTC trades to fully exchange
executed trades.
• The financial crisis may have triggered increased concentration among financial intermediaries but the weight of the largest market members
did not diminish on most exchanges (see graph below).
Monthly trading volumes
800
700
600
500
400
300
200
100
0
Jan. 08
Mar. 08
Single stock derivatives
May. 08
Jul. 08
Sep. 08
Nov. 08
Stock index derivatives
Jan. 09
Mar. 09
Bond derivatives
May. 09
Jul. 09
Sep. 09
Nov. 09
Jan. 10
Mar. 10
Percentage of total trading volume of the 5 most active members
%
Eurex
Montréal Exchange
0
15
30
45
34
Korea Exchange
34
35
42
BOVESPA
36
37
38
57
42
42
43
49
73
45
Bursa Malaysia
48
47
46
47
BM&F
Singapore Exchange
43
50
50
53
53
54
52
57
Boston Options Exchange
57
59
59
61
Athens Derivatives Exchange
Wiener Börse
100
47
25
TAIFEX
MexDer
90
2008
2009
19
19
36
33
75
16
16
Hong Kong Exchanges
MEFF
60
54
62
65
65
68
73
75
75
98
96
Statistics of total trading volume of the 5 most active members (%)
55
51
50
48
45
50
47
40
35
30
25
20
15
10
5
0
Average
2008
2009
Median
tel. + 33 (0) 1 58 62 54 00
fax. + 33 (0) 1 58 62 50 48
www.world-exchanges.org
email. [email protected]

International Options Market Association (IOMA) Report

Transcription

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