Exchange-traded derivatives trading rebounds, says BIS
Aggregate turnover of exchange-traded derivatives rebounded in the first quarter of 2003, according to the Bank for International Settlements (BIS).
“Activity was uneven across the major market risk categories, with trading in fixed-income contracts rising appreciably and business in stock index contracts declining marginally,” said the BIS in a statement.
Turnover in equity index contracts fell 3% in the first quarter to $16.7 trillion, with turnover in North America dropping 5% to $7.6 trillion and turnover in the Asia-Pacific region falling 9% to $5.2 trillion. However, turnover in European exchange-traded equity index contracts expanded 13% to $3.8 trillion. “The turnover of stock index contracts did not rise significantly when global equity markets faced downward pressure in January and February,” noted the BIS. “This may have reflected a retrenchment from risk-taking as rising geopolitical tensions exacerbated market volatility by overshadowing macroeconomic and corporate earnings announcements.”
The BIS also published the results of its semi-annual survey on global over-the-counter derivatives markets, and found that in the second half of 2002, gross market values – the replacement cost of all outstanding contracts – in these markets rose 43% to $6.4 trillion by the end of December. “Interest rate swaps accounted for the bulk of the expansion, which partly resulted from the sharp drop in swap yields from July to early October,” said the BIS.
The BIS found that the total estimated notional amount of outstanding contracts rose 11% to almost $142 trillion from its equivalent end-of-June 2002 number. The notional outstanding amount of OTC interest rate derivatives increased 13% to $101.7 trillion in the second half of 2002. The notional outstanding amount of OTC foreign exchange contracts increased 2% to $18.5 trillion, while the equivalent equity-linked contracts figure increased 4% to $2.3 trillion.
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 info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe
You are currently unable to print this content. Please contact info@risk.net to find out more.
You are currently unable to copy this content. Please contact info@risk.net to find out more.
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Printing this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@risk.net
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Copying this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@risk.net
More on Regulation
Revealed: the three EU banks applying for IMA approval
BNP Paribas, Deutsche Bank and Intesa Sanpaolo ask ECB to use internal models for FRTB
FCA presses UK non-banks to put their affairs in order
Greater scrutiny of wind-down plans by regulator could alter capital and liquidity requirements
Industry calls for major rethink of Basel III rules
Isda AGM: Divergence on implementation suggests rules could be flawed, bankers say
Saudi Arabia poised to become clean netting jurisdiction
Isda AGM: Netting regulation awaiting final approvals from regulators
Japanese megabanks shun internal models as FRTB bites
Isda AGM: All in-scope banks opt for standardised approach to market risk; Nomura eyes IMA in 2025
CFTC chair backs easing of G-Sib surcharge in Basel endgame
Isda AGM: Fed’s proposed surcharge changes could hike client clearing cost by 80%
UK investment firms feeling the heat on prudential rules
Signs firms are falling behind FCA’s expectations on wind-down and liquidity risk management
The American way: a stress-test substitute for Basel’s IRRBB?
Bankers divided over new CCAR scenario designed to bridge supervisory gap exposed by SVB failure