Equity derivatives surge at US G-Sibs

Systemically important US banks have expanded their portfolios of equity derivatives in recent years, with Bank of America Merrill Lynch (BAML) growing notionals by $384.8 billion over the last 12 months alone.

In Q2, the eight US global systemically important banks (G-Sibs) posted combined derivatives notionals, both over-the-counter and exchange-traded, of $255.5 trillion. Of this total, $9.4 trillion (3.7%) were equity derivatives.

Contract notionals for these instruments have climbed 8.9%