Global Derivatives Market Surges 64%

FIA has released a report on the futures and options traded on exchanges globally in 2023, highlighting a surge in overall derivatives trading. The volume of futures and options reached an
unprecedented 137.3 billion contracts, marking an increase of 64% and the sixth
consecutive year of record-setting activity in the listed derivatives.

Amid this global upswing, India emerged as a
major contributor, posting an extraordinary surge of 153% in equity
index options trading. The Asia-Pacific region experienced a staggering jump of 104% in trading volume, reaching 103.5 billion contracts.

North America, the second-largest region by trading
volume, witnessed an uptick of 6.2%, with 17.9 billion futures and options
contracts traded. The region also dominated open interest, accounting for 52%
of the total worldwide.

Latin America maintained a consistent trading volume
of 8.6 billion contracts, showing resilience amid global fluctuations.
European volume rose marginally by 2.6% to 4.9 billion contracts, while the
Middle East and Africa experienced a notable decline of 20% in trading volume.

Equity-related derivatives took center stage,
contributing significantly to the overall upturn. Futures and options based on
equity indices soared by 105%, reaching 99.9 billion contracts in 2023.

Currency and Interest Rates Futures

Currency futures and options, the second-largest
asset class, dropped 8% to 7.1 billion contracts, primarily due to a
substantial decline in currency futures trading. However, interest rate futures and options experienced a boost of 18%, totaling 6.1 billion contracts. Commodities, including agricultural
and energy, recorded double-digit increases in trading volume.

North America led in open interest, boasting 648
million contracts as of the end of last year. This represents an increase of 6.8% from
2022 and accounts for 52% of global open interest. The National Stock Exchange of India claimed the top
spot in total volume and growth rate, reporting an impressive increase of 123%,
with a total trading volume of 84.8 billion contracts.

The Options Clearing
Clearing

Clearing is a general term that simply means many different things depending on the subject and related industry. Most commonly, this refers to the reciprocal exchange between banks of checks and drafts, and the settlement of the differences, or the total of claims settled at a clearinghouse. In finance and banking, the word clearing has different meanings depending on the more specific business model. Moving checks from the bank where they were deposited to the bank on which they were drawn. Th

Clearing is a general term that simply means many different things depending on the subject and related industry. Most commonly, this refers to the reciprocal exchange between banks of checks and drafts, and the settlement of the differences, or the total of claims settled at a clearinghouse. In finance and banking, the word clearing has different meanings depending on the more specific business model. Moving checks from the bank where they were deposited to the bank on which they were drawn. Th
Read this Term Corporation retained its
position as the world’s largest clearinghouse
Clearing House

A clearing house is defined as an intermediary between two parties, a buyer and seller, which helps facilitate the overall process from trade inception to settlement. Clearing houses streamline the exchange of payments, securities, or derivatives transactions.The clearing house is situated between two clearing firms who also helps reduce the risk of either member firm failing to honor their respective trade settlement obligations.Buyers and sellers enter into legally binding agreements for the e

A clearing house is defined as an intermediary between two parties, a buyer and seller, which helps facilitate the overall process from trade inception to settlement. Clearing houses streamline the exchange of payments, securities, or derivatives transactions.The clearing house is situated between two clearing firms who also helps reduce the risk of either member firm failing to honor their respective trade settlement obligations.Buyers and sellers enter into legally binding agreements for the e
Read this Term, reporting 482.8 million
contracts in open interest, more than double any other derivatives
clearinghouse.