European equity derivatives outstrip cash for first time

European equity derivatives revenues in 2001 reached Eur8.5 billion, according to a report conducted by the two firms, while the equity cash market generated Eur7.1 billion. Both areas were weaker than in 2000, when equity derivatives revenues hit Eur9.1 billion, with cash registering Eur10.9 billion.

Ted Moynihan, senior manager in Oliver, Wyman's capital markets practice, said increased demand from retail investors for index-linked and guaranteed products was partly responsible for the relatively higher derivatives volumes.

The report criticised banks for adopting a 'one-stop shop' approach to doing business. “In our view, too many banks appear to be following a ‘me too’ strategy in terms of corporate and institutional banking, and are failing to differentiate themselves in the minds of their customers,” said the report.

The study added that corporate and institutional revenues in Europe were down 7% last year to Eur76 billion, and predicted further declines for 2002. “This shrinking revenue, combined with increased credit losses, would mean industry profits fall again in 2002 by as much as 10%.”

Mark Rodrigues, a managing director at Oliver, Wyman’s New York office, said the implications for north American second-tier banks with operations in Europe were "dire".

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact or view our subscription options here:

You are currently unable to copy this content. Please contact to find out more.

You need to sign in to use this feature. If you don’t have a account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here