ioma derivative market survey 2009 - final version

IOMA Derivatives Market Survey 2009

Conducted by WFE With the help of Didier Davydoff and Grégoire Naacke IEM Finance May 2010

WFE/IOMA Derivatives Market Survey 2009 – May 2010 2

As of May 2010, the members of IOMA / IOCA were: Athens Derivatives Exchanges, S.A. Australian Securities Exchange BM&FBOVESPA S.A Bolsa de Comercio de Buenos Aires Bolsa de Comercio de Santiago Bombay Stock Exchange Ltd Borsa Italiana SpA Bourse de Montreal Budapest Stock Exchange Ltd Bursa Malaysia Derivatives CME Group Chicago Board Options Exchange Eurex Frankfurt AG Eurex Zurich AG 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 Bors Singapore Exchange Taiwan Futures Exchange Tel-Aviv Stock Exchange Thailand Futures Exchange Tokyo Stock Exchange Warsaw Stock Exchange Wiener Borse AG 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.


International Options Market Association (IOMA) 2009 Derivatives Market Survey Table of Contents Introduction .................................................................................................................................................... 4

Offers of derivatives ....................................................................................................................................... 5

The global derivatives market ....................................................................................................................... 8

Exchange and products trends .................................................................................................................... 10

A – Equity products ..................................................................................................................................... 11

B – Interest rate products ............................................................................................................................ 28

C – Currency products ................................................................................................................................. 37

D – Commodity derivatives.......................................................................................................................... 42

Gathering statistics on retail trading ............................................................................................................ 49

Clearing of derivatives transactions ............................................................................................................ 50

Conclusion ................................................................................................................................................... 53


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

analysed 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 occured in the listing

of STIR derivatives, with the Singapore Exchange dropping the options and Budapest SE adding futures.

Osaka SE 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 SE and Tokyo SE introduced ETF options.

Products added or dropped during 2009 Added Dropped Stock options Tel Aviv Stock Ex. Stock futures MexDer ETF options Osaka SE, Tokyo St Ex. STIR options Singapore Ex. STIR futures Budapest SE

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, platinium, 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.


0 1 2 3 4 5 6 7 8 9 10 11 12

Australian SEBM&FBOVESPA

Johannesburg SE NYSE Liffe (European markets)

CME GroupEurex

Montréal ExchangeKorea Exchange

MexDerBudapest SE

Hong Kong ExchangesNASDAQ OMX Nordic Exchanges

TAIFEXChicago Board Options Exchange …National Stock Exchange of India

Tokyo Stock Exchange GroupICE Futures U.S.

MEFFOsaka SE

Singapore ExchangeTel Aviv SE

Athens DerivativesBorsa Italiana

Bursa MalaysiaInternational Securities Exchange (ISE)

Oslo BørsThailand Futures Exchange (TFEX)

Turkish Derivatives ExchangeWarsaw SE

Wiener BörseNASDAQ OMX PHLX

NYSE AmexBombay Stock Exchange

Buenos Aires SEICE Futures CanadaICE Futures Europe

London Metal ExchangeMercado a Término de Buenos Aires

NYSE Arca OptionsTokyo Financial Exchange Inc.

Multi Commodity Exchange of India …Boston Options Exchange

Central Japan Commodity ExchangesDalian Commodity Exchange

One ChicagoShanghai Futures Exchange

Tokyo Grain ExchangeZhengzhou Commodity Exchange

MicexRofex

RTS

Number of product lines

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


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 million

contracts). Such stabilisation is a break in the trend of uninterrupted growth recorded in all previous years

since 1998.

8,8

7,8Options

Futures

2009 Worldwide Derivatives Volume16 Billion Contracts Traded

0

2

4

6

8

10

12

14

16

18

Options Futures Total

Billi

on c

ontra

cts 2003

2004

2005

2006

2007

2008

2009

Derivatives Volume Growth


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.

5%

15%

9%11%

16%13%

10%

34%

19%20%

28%23%

10%13% 11%

3%

0%

1%

-20%

-10%

0%

10%

20%

30%

40%

Options Futures Total

2004/03

2005/04

2006/05

2007/06

2008/07

2009/08

Derivatives Volume Growth Rate

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.

Enventually, 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.

0,0

0,5

1,0

1,5

2,0

2,5

3,0

0

2

4

6

8

10

12

2003 2004 2005 2006 2007 2008 2009C

urre

ncy a

nd C

omm

odity

Equi

ty a

nd In

tere

st ra

te

Equity

Interest rate

Currency

Commodity

Contracts traded by Product Group (billion contracts)

2009 volume and 2009/2008 growth rate

Single Stock

Stock Index ETF STIR LTIR Currency Commo-

dities

Millions of contracts traded

Options 3 374 3 869 955 397 78 37 132

Futures 501 1 928 - 1 006 896 923 2 515

Growth rate of contracts traded

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.

0%

20%

40%

60%

80%

100%

120%

Feb-

05A

pr-0

5Ju

n-05

Au g

-05

Oct

-05

Dec

-05

Feb-

06A

pr-0

6Ju

n-06

Au g

-06

Oct

-06

Dec

-06

Feb-

07A

pr-0

7Ju

n-07

Au g

-07

Oct

-07

Dec

-07

Feb-

08A

pr-0

8Ju

n-08

Au g

-08

Oct

-08

Dec

-08

Feb-

09A

pr-0

9Ju

n-09

Au g

-09

Oct

-09

Dec

-09

Feb-

10

Dow Jones

Nikkei 225

Dow Jones STOXX 600

(Annualized volatility of global indexes over 20 days)

Global equity indices volatility

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.


0,0

0,5

1,0

1,5

2,0

2,5

0,0

1,0

2,0

3,0

4,0

5,0

6,0

2003 2004 2005 2006 2007 2008 2009

Futu

res

Opt

ions

Stock options Index & ETF options

Stock futures Index futures

Equity Products Volume Growth (billion contracts)

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.


2%

-63%

-44%

-44%

-41%

-33%

-26%

-24%

-22%

-21%

-20%

-13%

-11%

-2%

-1%

-1%

0%

1%

2%

5%

27%

41%

56%

94%

649%

844%

4576%

-75% -50% -25% 0% 25% 50% 75% 100% 125% 150%

ALL EXCHANGES

Athens Derivatives Exchange (3)

Oslo Børs

Wiener Börse

MexDer

NASDAQ OMX Nordic Exchanges

Eurex (1)

Osaka SE

Boston Options Exchange (2)

NASDAQ OMX PHLX

Johannesburg SE

Hong Kong Exchanges (1)

Australian Securities Exchange (Inc. SFE) (4)

International Securities Exchange (ISE)

Montréal Exchange(1)

NYSE Liffe (European markets) (1)

Buenos Aires SE

NYSE Arca Options

Borsa Italiana

Chicago Board Options Exchange (CBOE)

National Stock Exchange of India

NYSE Amex

BM&FBOVESPA

MEFF(1)

Tokyo Stock Exchange Group

TAIFEX

Korea Exchange

2009/2008 % Change in stock options volume

(1) : Excluding OTC business registered on the exchange (2) : Including options on ETF (3) : Excluding REPOs (4) : Including LEPOs


672

635

547

426

274

171

146

142

138

42

36

29

25

20

72

687

604

350

538

271

121

197

143

178

48

18

43

25

20

69

‐ 200 400 600 800



BM&FBOVESPA

NASDAQ OMX PHLX

NYSE Arca Options

NYSE Amex

Eurex (1)




MEFF(1)


Buenos Aires SE

Borsa Italiana

Others Exchanges

Millions

Stock options contract volume

2008

2009

2,19

0,93

0,40

0,35

0,33

0,20

0,13

0,09

0,08

0,07

0,06

0,02

0,01

0,00

2,72

0,86

0,05

0,88

0,46

0,26

0,17

0,05

0,07

0,11

0,04

0,04

0,01

0,01

0,0 0,5 1,0 1,5 2,0 2,5 3,0


BM&FBOVESPA


Eurex (1)





Montréal Exchange(1)

Borsa Italiana

MEFF(1)


TAIFEX

Other Exchanges

USD Trillion

Stock options notional value

2008

2009

(1) : Excluding OTC business registered on the exchange (2) : Including options on ETF (3) : Excluding REPOs (4) : Including LEPOs NB: Notional values are not available for ISE, Buenes Aires, NYSE Amex, NYSE Arca Options, NASDAQ OMX PHLX,

2 789

78

487

2 902

80

421

0

500

1 000

1 500

2 000

2 500

3 000

3 500

Americas Asia Pacific Europe, Africa, Middle East

Mill

ions

Stock options contract volume by geographical zone

2008 2009


The most actively traded stock options in the world

Underlying Equity Exchange Millions of

traded cont. Market share

Opt. Prem. 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 16.1 (1) 54.0 (2) 0.4% 1.5% 2.4 (2) 9.1 (2) Bank of America NASDAQ OMX PHLX 15.7 NA 0.4% NA NA NA Apple Inc. ISE 15.6 20.1 0.4% 0.6% NA NA Apple Inc. CBOE 13.4 20.6 0.4% 0.6% 6.4 6.2 JP Morgan CBOE 12.8 NA 0.4% NA 2.6 NA Wells Fargo & Company ISE 12.7 NA 0.4% NA NA NA Royal Dutch Shell NYSE Liffe 10.9 12.6 0.3% 0.4% 1.9 3.2 UBS Eurex 10.6 (1) 12.9 (2) 0.3% 0.4% 1.1 (2) 6.7 (2) Schweizerische Rückversicherung Eurex 10.3 (1) 9.5 (2) 0.3% NA 0.4 (2) NA Mittal Steel NYSE Liffe 10.1 NA 0.3% NA 2.7 NA

(1) Excluding OTC business registered on the exchange – ‘(2) 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

Million contracts traded OTC contracts processed by exchanges as a percentage of

total contracts traded (OTC+ on-exchange)

2009 2008 Growth

rate Contracts traded Notional value of contracts traded Number of trades

Eurex 158 152 4% 52% 53% 3% Hong Kong Exchanges 5 7 -16% 12% 8% NA NYSE Liffe (Bclear) 29 41 -29% 17% 28% 0% MEFF 34 13 156% 49% 43% 8% Montréal 0.17 0.20 -16% 1% NA 0%

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.

-39%

-100%

-80%

-63%

-58%

-44%

-29%

-27%

-26%

-13%

-4%

4%

6%

36%

40%

105%

148%

220%

3698%

-60% -40% -20% 0% 20% 40% 60% 80% 100% 120%

ALL EXCHANGES

MexDer

Johannesburg SE



Oslo Børs


Eurex (1)

One Chicago (5)

Wiener Börse

MEFF (1)

Budapest SE



Warsaw SE


Borsa Italiana

Korea Exchange

Thailand Futures Exchange (TFEX) (1)

2009/2008 % Change in stock futures volume

(1) : Excluding OTC business registered on the exchange (3) : Including CFDs (4) : Excluding REPOs (5) : Including Stock Index and ETF Futures


161

142

86

45

37

11

7

5

3

5

226

69

431

46

12

4

16

4

4

7

‐ 100 200 300 400



Johannesburg SE

MEFF (1)

Korea Exchange

Borsa Italiana



One Chicago (5)

Other Exchanges

Millions

Stock futures contract volume

2008

2009

968

59

48

30

13

6

5

3

2

5

1 001

90

32

45

6

6

7

1

26

9

0 250 500 750 1000


MEFF (1)

Borsa Italiana

Johannesburg SE

Korea Exchange


Budapest SE



Other Exchanges

USD Billion

Stock futures notional value

2008

2009

(1) : Excluding OTC business registered on the exchange (3) : Including CFDs (4) : Excluding REPOs (5) : Including Stock Index and ETF Futures

4

307

509

3

340

158

0

100

200

300

400

500

600

700


Mill

ions

Stock futures contract volume by geographical zone

2008 2009


Regarding stock futures traded Over The Counter 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

Million contracts traded OTC contracts processed by exchanges as a percentage of total

contracts traded (OTC+ on-exchange)

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% MEFF 30 39 -25% 40% 41% 3%


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 SE (+9%).

In North America, Europe and Africa, all exchanges except the Warsaw SE 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 twelth in 2008).

In South America, BM&FBOVESPA continued to grow rapidly.


5%

-55%

-53%

-51%

-47%

-33%

-30%

-29%

-28%

-28%

-28%

-26%

-25%

-24%

-23%

-23%

-22%

-20%

-15%

-14%

-14%

-14%

-12%

6%

9%

17%

18%

28%

33%

109%

113%

-60% -40% -20% 0% 20% 40% 60% 80% 100% 120%

ALL EXCHANGES

Oslo Børs

NYSE Amex

Singapore Exchange

MEFF(1)

NASDAQ OMX PHLX

Borsa Italiana

Johannesburg SE

CME Group

Wiener Börse


International Securities Exchnage (ISE)

Bombay Stock Exchange

Tel Aviv SE

ICE Futures U.S.

MexDer

TAIFEX

Eurex (1)


Chicago Board Options Exchange (CBOE) (4)



Montréal Exchange

Korea Exchange

Osaka SE



Warsaw SE

BM&FBOVESPA

Thailand Futures Exchange (TFEX)


2009/2008 % Change in index options volume

(1) : Excluding OTC business registered on the exchange (2) : Excluding REPOs (3) : Including LEPOs (4) : Volatility index options


2 921

321

223

96

76

62

37

35

32

14

13

10

27

0 100 200 300 400 500 600 700

Korea Exchange



Eurex (1)

TAIFEX

Tel Aviv SE


Osaka SE

CME Group



Johannesburg SE

Other Exchanges

Millions

Index options contract volume

2008

2009

2

40,3

16,6

3,6

3,1

1,6

1,4

1,4

0,7

0,6

0,7

42,8

25,1

7,3

5,7

2,8

2,2

0,7

1,1

0,3

0,9

0 10 20 30 40

Korea Exchange


CME Group

Eurex (1)


Tel Aviv SE


TAIFEX


Other Exchanges

USD trillions

Index options notional value

2008

2009

(1) : Excluding OTC business registered on the exchange (2) : Excluding REPOs (3) : Including LEPOs NB: Notional values are not available for ISE and Osaka SE.

336

2 766

289 293277

2 921

442229

0

500

1 000

1 500

2 000

2 500

3 000

3 500

Americas Korea Ex. Asia Pacific Excl. Korea Europe, Africa, Middle East

Mill

ions

Index options contract volume by geographical zone

2008 2009


The most actively traded index options in the world

Underlying Index Exchange Millions of contracts

Market share in 2009

Opt. Prem. billion $

2009 2008 Total Ex. Korea 2009 2008 Kospi 200 Korea Exchange 2 921 2 766 69.4% 227.1% 202.1 257.9 S&P CNX Nifty Index NSE India 321 151 7.6% 25.0% 24.9 17.1 Euro Stoxx 50 Eurex 300 (2) 401 (2) 7.1% 23.3% 431.2 (2) 740.8 (2) S&P 500 CBOE 155 179 3.7% 12.0% 403.5 621.3 TAIFEX TAIFEX 72 93 1.7% 5.6% NA NA TA 25 Tel-Aviv SE 62 81 1.5% 4.8% 18.0 29.3 Nikkei 225 Osaka SE 35 32 0.8% 2.7% 55.5 48.6 Volatility Index Options CBOE 33 26 0.8% 2.6% 5.2 5.2 FTSE 100 (incl. Index FLEX Options) NYSE Liffe (2) 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% 3219.6 NA DAX Eurex 25 (1) 105 (2) 0.6% 2.0% 86.4 (2) 133.7 (2) AEX NYSE Liffe (2) 25 28 0.6% 1.9% 19.4 33.5

(1) Excluding OTC business registered on the exchange – ‘(2) Including OTC business registered on the exchange

Regarding stock indfex options traded OTC and registered on exchange, the Honk Kong Exchanges with

a 71% increase registered the fastest annual growth rate.

Stock index options: OTC trades processed by exchanges

Stock Exchange


total contracts traded(OTC+ on-exchange)

2009 2008 Growth rate Contracts traded Notional value of contracts traded

Number of trades

BM&FBOVESPA 1.1 1.0 18% 37% 44% 12% Eurex 306 395 -22% 76% 76% 6% Hong Kong Exchanges 3 1 90% 35% 33% 1% NYSE Liffe (Bclear) 26 23 11% 41% 53% 0% MEFF 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 SE, Turkish Derivatives

Exchange, Warsaw SE and Wiener Börse.

In Asia, volumes remained stable. The two biggest exchanges, National Stock Exchange of India and

Osaka SE 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.


-13%

-100%

-89%

-32%

-23%

-21%

-20%

-19%

-19%

-16%

-16%

-15%

-14%

-13%

-13%

-12%

-5%

-5%

-3%

-2%

-1%

0%

4%

7%

9%

20%

25%

30%

61%

132%

294%

-100% -75% -50% -25% 0% 25% 50% 75% 100%

ALL EXCHANGES

Bombay Stock Exchange

Oslo Børs

Bursa Malaysia

Eurex (1)

CME Group

Budapest SE

Borsa Italiana

MEFF (1)





Singapore Exchange

Johannesburg SE

Montréal Exchange


BM&FBOVESPA



Osaka SE


MexDer

Wiener Börse

Warsaw SE


Korea Exchange

TAIFEX

Turkish Derivatives Exchange

ICE Futures U.S.

Tel Aviv SE

2009/2008 % Change in index futures volume

(1) : Excluding OTC business registered on the exchange (2) : Including futures on ETF (3) : Including CFDs (4) :Excluding REPOs (5) : Volatility index futures


708

336

196

130

85

83

65

52

42

41

39

34

29

17

16

13

42

898

439

202

131

101

66

40

60

43

32

17

39

30

19

19

12

59

- 200 400 600 800

CME Group

Eurex (1)


Osaka SE


Korea Exchange


Singapore Exchange


TAIFEX

ICE Futures U.S.


BM&FBOVESPA

Johannesburg SE


Warsaw SE

Other Exchanges

Millions

Index futures contract volume

2008

2009

33,3

15,9

6,0

4,7

4,1

3,5

1,4

1,2

0,8

0,8

0,7

0,6

0,5

0,4

0,3

0,2

0,2

54,6

29,2

5,6

8,2

2,8

5,3

2,1

1,0

0,9

1,0

1,3

1,1

0,7

0,6

0,5

0,1

0,8

0 10 20 30 40 50

CME Group

Eurex (1)

Korea Exchange



Osaka SE


TAIFEX



MEFF (1)

Borsa Italiana

BM&FBOVESPA

Montréal Exchange

Johannesburg SE


Other Exchanges

USD trillions

Index futures notional value

2008

2009

(1) : Excluding OTC business registered on the exchange (3) : Including CFDs (4) :Excluding REPOs NB: Notional values are not available for ICE Futures US and Singapore Exchange.

952

571

684

782

575 571

0

200

400

600

800

1 000


Mill

ions

Index futures volume by geographical zone

2008 2009


OTC registration of stock index futures decreased everywhere except for NYSE Liffe (Bclear) (+52%).

Stock index futures: OTC trades processed by exchanges

Stock Exchange


total contracts traded (OTC+ on-exchange)

2009 2008 Growth rate Contracts traded Notional value of contracts traded Number of trades

Eurex 59 73 -19% 15% 12% 0% Hong Kong Exchanges 1 2 -14% 3% 3% 0% NYSE Liffe (Bclear) 8 5 52% 9% 10% 0% MEFF 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.


11%

-99%

-73%

-9%

-16%

-2%

-2%

1%

174%

1300%

4100%

-100% -75% -50% -25% 0% 25% 50%

ALL EXCHANGES

Eurex

NYSE Liffe (European markets)



Hong Kong Exchanges

NYSE Amex

NYSE Arca Options

Montréal Exchange

BM&FBOVESPA

Australian Securities Exchange (Inc. SFE)

2009/2008 % Change in ETF options volume

277

274

148

175

77

3

0

330

301

146

-

79

1

0

‐ 50 100 150 200 250 300 350



NYSE Arca Options

NASDAQ OMX PHLX

NYSE Amex

Montréal Exchange

Other Exchanges

Millions

ETF options contract volume

2008

2009

1 655,4

19,6

0,8

2 407,8

1,8

3,2

0 500 1 000 1 500 2 000 2 500


Montréal Exchange

Other Exchanges

USD billions

ETF options contract value

2008

2009

NB: Notional values are not available for NYSE Amex,NYSE Arca Options and ISE.

856,33

0,12 0,34

954,50

0,12 0,010

200

400

600

800

1 000


Mill

ions

ETF options contract volume by geographical zone

2008 2009


The most actively traded ETFoptions in the United States

Millions of

traded contracts 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.

0,0

0,1

0,2

0,3

0,4

0,5

0,6

0,7

0,8

0,0

0,2

0,4

0,6

0,8

1,0

1,2

1,4

1,6

2003 2004 2005 2006 2007 2008 2009

Opt

ions

Futu

res

STIR futures

LTIR futures

STIR options

LTIR options

Interest Rate Products Volume Growth (billion contracts)


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

-9%

-97%

-87%

-30%

-17%

2%

86%

111%

385%

-100% -75% -50% -25% 0% 25% 50% 75% 100% 125%

ALL EXCHANGES

Tokyo Financial Exchange Inc.


CME Group

Montréal Exchange



BM&FBOVESPA


2009/2008 % Change in STIR options volume

190

161

45

1

0

187

229

21

1

2

0 100 200 300


CME Group

BM&FBOVESPA


Other Exchanges

STIR options contract volume

2008

2009

Millions

221,39

161,03

0,21

0,03

233,73

228,52

0,26

0,25

0 100 200 300


CME Group

Montréal Exchange

Other Exchanges

USD trillions

STIR options notional value

2008

2009

NB: Notional values are not available for Tokyo Financial Exchange Inc.


250

2

187 206

0

191

0

50

100

150

200

250

300


Mill

ions

STIR options contract volume by geographical zone

2008 2009

b) STIR Futures

-21%

-89%

-89%

-71%

-43%

-42%

-35%

-32%

-27%

-25%

-23%

-18%

-12%

-10%

-100% -90% -80% -70% -60% -50% -40% -30% -20% -10% 0%

ALL EXCHANGES


TAIFEX

Singapore Exchange

Eurex (1)


Bursa Malaysia

MexDer

CME Group


Montréal Exchange



BM&FBOVESPA

2009/2008 % Change in STIR futures volume

(1) : Excluding OTC business registered on the exchange


438

302

170

42

18

14

13

8

1

598

342

189

62

24

17

22

10

2

0 100 200 300 400 500 600

CME Group


BM&FBOVESPA

MexDer




Montréal Exchange

Other Exchanges

STIR futures contract volume

2008

2009

Millions

439,0

335,1

17,2

7,9

6,8

0,9

598,9

437,9

24,1

9,0

9,3

1,6

0 200 400 600

CME Group


Australian Securities

Exchange (Inc. SFE)

BM&FBOVESPA

Montréal Exchange

Other Exchanges

Millions

STIR futures notional value

2008

2009

(1) : Excluding OTC business registered on the exchange NB: Notional values are not available for Tokyo Financial Exchange Inc. and NASDAQ OMX Nordic Exchange.

859

47

359

658

31

316

0

100

200

300

400

500

600

700

800

900

1 000


Mill

ions

STIR futures contract volume by geographical zone

2008 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 quiter 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 unfavourable 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-

Bund 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 SE 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

-33%

-52%

-47%

-36%

-32%

0%

56%

62%

174%

-100% -75% -50% -25% 0% 25% 50% 75% 100% 125%

ALL EXCHANGES

Buenos Aires SE

Montréal Exchange

CME Group

Eurex(1)




Johannesburg SE

2009/2008 % Change in LTIR options volume


62,9

9,8

2,4

2,0

0,5

97,8

14,4

2,4

1,3

0,1

0 20 40 60 80 100

CME Group

Eurex(1)



Other Exchanges

LTIR options contract volume

2008

2009

Millions

27,2

1,5

0,2

46,7

2,4

0,1

0 10 20 30 40

CME Group

Eurex(1)

Other Exchanges

USD triliions

LTIR options notional value

2008

2009

(1) : Excluding OTC business registered on the exchange NB: Notional values are not available for Tokyo Stock Exchange Group.


97,9

3,714,4

62,9

4,510,2

0

20

40

60

80

100

120


Mill

ions

LTIR options contract volume by geographical zone

2008 2009

b) LTIR Futures

-29%

-81%

-78%

-36%

-33%

-31%

-29%

-28%

-16%

-13%

-4%

-1%

20%

26%

29%

148%

220%

-100% -75% -50% -25% 0% 25% 50%

ALL EXCHANGES

BM&FBOVESPA

TAIFEX


CME Group


Eurex (1)

Montréal Exchange

Singapore Exchange



MexDer

Johannesburg SE

Korea Exchange

MEFF (1)


Bursa Malaysia

2009/2008 % Change in LTIR futures volume



411,5

382,8

33,9

24,9

20,1

6,8

5,7

5,3

3,2

0,7

0,8

615,3

536,1

39,0

25,8

15,9

10,6

8,3

7,4

3,2

0,8

1,0

0 100 200 300 400 500 600 700

CME Group

Eurex (1)



Korea Exchange



Montréal Exchange

MexDer

Singapore Exchange

Other Exchanges

LTIR futures contract volume

2008

2009

Millions

96,71

58,52

7,22

3,71

2,66

1,74

0,47

0,06

164,69

86,28

10,35

4,80

3,24

1,53

0,69

0,14

0 50 100 150 200

CME Group

Eurex (1)




Korea Exchange

Montréal Exchange

Other Exchanges

USD trillions

LTIR futures notional value

2008

2009

(1) : Excluding OTC business registered on the exchange NB: Notional values are not available for Singapore Exchange, NASDAQ OMX Nordic Exchange.

626

67

571

420

62

414

0

100

200

300

400

500

600

700


Mill

ions

LTIR futures contract volume by geographical zone

2008 2009


C – Currency products Due to the very rapid developement 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.

0,00

0,02

0,04

0,06

0,08

0,10

0,0

0,2

0,4

0,6

0,8

1,0

2003 2004 2005 2006 2007 2008 2009

Opt

ions

Futu

res

Currency futures

Currency options

Currency Products Volume Growth (billion contracts)


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. Neverheless, 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 SE with 8.1

million contracts traded in 2009.

There is no trading on currency options in the Asia Pacific region at present.

-37%

-87%

-80%

-68%

-49%

-29%

-26%

-19%

-3%

26%

-100% -75% -50% -25% 0% 25% 50%

ALL EXCHANGES

Johannesburg SE


NASDAQ OMX PHLX

Budapest SE

BM&FBOVESPA

Tel Aviv SE

CME Group


Montréal Exchange

2009/2008 % Change in currency options volume


21,6

8,1

4,5

1,2

0,7

0,4

0,3

0,3

30,6

11,0

5,6

3,9

5,5

0,4

1,7

0,5

- 5 10 15 20 25 30 35

BM&FBOVESPA

Tel Aviv SE

CME Group

NASDAQ OMX PHLX

Johannesburg SE



Other Exchanges

Millions

Currency options contract volume

2008

2009

643,0

16,8

6,1

850,9

27,9

7,1

0 250 500 750

CME Group

BM&FBOVESPA

Other Exchanges

USD billions

Currency options notional value

2008

2009

NB: Notional values are not available for ISE, Johannesburg SE, NASDAQ OMX PHLX, Tel Aviv SE.

42

17

28

10

-

10

20

30

40

50

Americas Europe, Africa, Middle East

Mill

ions

Currency options volume by geographical zone

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 algotithmic 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.1

74%

-87%

-49%

-23%

-14%

-2%

0%

14%

22%

22%

63%

96%

161%

508%

876%

148%

220%

-50% -25% 0% 25% 50% 75% 100%

ALL EXCHANGES

Micex

MexDer

BM&FBOVESPA

Budapest SE


CME Group (1)


Rofex

Warsaw SE



RTS

Korea Exchange

Johannesburg SE


Multi Commodity Exchange of India (includes MCX‐SX) (3)

2009/2008 % Currency futures volume

(1) : Excluding OTC business registered on the exchange (2) : Including CFDs (3) : Began trading in October 2008

1 Source : Alexandre Balabushkin, « The return of the ruble », Swiss Derivatives Review, issue 42, Spring 2010


226

224

153

71

67

51

42

36

18

14

8

7

3

11

9

152

43

88

42

7

14

132

14

9

1

7

0 50 100 150 200 250


Multi Commodity Exchange of India (includes MCX‐SX) …

CME Group (1)


BM&FBOVESPA

Rofex

Korea Exchange

RTS

Micex


Budapest SE

Johannesburg SE

Other Exchanges

Currency futures contract volume

2008

2009

Millions

19,48

3,36

0,55

0,22

0,04

20,54

4,32

0,35

0,01

0,03

0 5 10 15 20 25

CME Group (1)

BM&FBOVESPA

Korea Exchange


Other Exchanges

USD trillions

Currency futures notional value

2008

2009

(1) : Excluding OTC business registered on the exchange (3) : Began trading in October 2008

288

71

169

273

565

82

0

100

200

300

400

500

600

700


Mill

ions

Currency futures volume contract by geographical zone

2008 2009


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%.

0,00

0,06

0,12

0,18

0,0

0,9

1,8

2,7

2003 2004 2005 2006 2007 2008 2009

Opt

ions

Futu

res

Commodity futures

Commodity options

Commodity Products Volume Growth (billion contracts)

a) Commodity Options

CME Group still dominates the scene for commodity options, although trading volumes have known a

decline (-18%) on this exchange in 2009. Far behind CME Group, ICE Futures still retains its positions as

the second market in the world for commodity options. ICE Futures also suffered from a slowdown of its

volumes (-36%), but the decrease was a little less pronounced than for CME Group.

In South America, agricultural options were traded on BM&FBOVESPA and Mercado a Término de

Buenos Aires.

In Europe, the most active exchange is the London Metal Exchange, where activity decreased in 2009

followed by NYSE Liffe and ICE Futures Europe which both showed increased activity.

In the Asia Pacific region, the Taiwan Futures Exchange was very successful with its new Gold option

which recorded 5.5 million contracts. The Australian Securities Exchange maintained its trading at the

same level as in 2008.


-14%

-63%

-36%

-26%

-18%

-9%

0%

6%

52%

52%

174%

306%

-75% -50% -25% 0% 25% 50% 75%

ALL EXCHANGES

Johannesburg SE

ICE Futures U.S.

London Metal Exchange

CME Group (Inc. OTC)

BM&FBOVESPA



Budapest SE

ICE Futures Europe

Mercado a Término de Buenos Aires

ICE Futures Canada

2009/2008 % Changes in commodity options volume

102,3

11,1

5,8

5,5

3,8

1,5

1,8

124,4

17,2

0,0

7,4

1,4

1,5

1,9

0 20 40 60 80 100 120 140


ICE Futures U.S.

TAIFEX




Other Exchanges

Millions

Commodity options contract volume

2008

2009

936,6

384,4

34,1

6,3

NA

705,0

NA

5,8

0 250 500 750 1 000

CME Group (Ex. OTC)


TAIFEX

Other Exchanges

USD billions

Commodity options notional value

2008

2009

NB: Notional values are not available for BM&FBOVESPA, ICE Future Europe, Mercado a Término de Buenos Aires and ICE Future US.

144

010

118

6 8

020406080

100120140160180


Mill

ions

2008 2009

Commodity options contract volume by geographical zone


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 Shanghaï 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.

54%

-89%

-48%

-46%

-43%

-39%

-38%

-14%

-12%

-10%

-9%

1%

1%

1%

2%

6%

8%

33%

71%

120%

166%

210%

216%

316%

-100% -75% -50% -25% 0% 25% 50% 75% 100%

ALL EXCHANGES

Eurex


Central Japan Commodity Exchanges

Tokyo Grain Exchange

BM&FBOVESPA

TAIFEX

Johannesburg SE

Korea Exchange


ICE Futures U.S.




Zhengzhou Commodity Exchange

ICE Futures Canada

ICE Futures Europe

Bursa Malaysia

Multi Commodity Exchange of India (includes MCX‐SX)

Hong Kong Exchanges(1)

Dalian Commodity Exchange

Shanghai Futures Exchange

Budapest SE


2009/2008 % Change in commodity futures volume



833,6

516,4

434,9

227,1

164,8

146,4

106,5

39,0

14,3

10,6

21,7

313,2

513,1

140,3

222,6

152,3

85,5

105,9

43,0

14,2

11,8

29,0

0 100 200 300 400 500 600 700 800 900





ICE Futures Europe



ICE Futures U.S.



Other Exchanges

Millions

Commodity futures contract volume

2008

2009

7 023

4 669

1 399

203

64

38

28

23

24

9 538

NA

1 026

214

64

60

43

44

13

0 1 000 2 000 3 000 4 000 5 000


CME Group(1)



Bursa Malaysia

TAIFEX

Johannesburg SE

BM&FBOVESPA

Other Exchanges

USD billions

Commodity options notional value

2008

2009

(1) : Excluding OTC business registered on the exchange (2) Including Commodity Options 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).

577

782

272

575

1 656

284

0

200

400

600

800

1 000

1 200

1 400

1 600

1 800

2 000


Mill

ions

Commodity futures contract volume by geographical zone

2008 2009


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.

21%

-100%

-100%

8%

13%

24%

49%

145%

-100%-75%-50%-25% 0% 25% 50% 75% 100%

ALL EXCHANGES

Eurex


ICE Futures Europe

CME Group (Excluding OTC)




2009/2008 % Change in energy futures volume

226,9

164,8

52,0

45,8

0,1

0,0

0,0

201,0

152,3

21,3

30,8

0,1

0,006

0,2

0 100 200 300


ICE Futures Europe





Eurex

Millions

Energy futures contract volume

2008

2009


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.

91%

-50%

-38%

-5%

1%

37%

47%

120%

400%

574%

-50% -25% 0% 25% 50% 75% 100%

ALL EXCHANGES

BM&FBOVESPA

TAIFEX



Korea Exchange





2009/2008 % Change in metal futures volume

295,6

106,5

94,3

50,5

3,3

0,4

59,1

105,9

64,2

53,2

5,4

0,022

0 100 200 300





TAIFEX

Other Exchanges

Millions

Metal futures contract volume

2008

2009


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.

65%

-54%

-43%

-39%

-16%

-14%

-10%

-9%

-9%

1%

2%

6%

33%

92%

166%

216%

-50% -25% 0% 25% 50% 75% 100%

ALL EXCHANGES



BM&FBOVESPA

Korea Exchange

Johannesburg SE


ICE Futures U.S.




ICE Futures Canada

Bursa Malaysia



Budapest SE

2009/2008 % Change in agricultural futures volume

833,6

227,1

153,6

89,0

39,0

14,3

10,6

4,8

3,5

1,9

4,0

1,6

0,1

313,2

222,6

168,2

46,5

43,0

14,2

11,8

8,4

3,3

3,1

3,0

1,9

0,1

0 100 200 300 400 500 600 700 800 900





ICE Futures U.S.




ICE Futures Canada

BM&FBOVESPA

Bursa Malaysia

Johannesburg SE

Other Exchanges

Millions

Agricultural futures contract volume

2008

2009


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 SE) succeded in attracting significant interest from retail

investors in futures contracts.

Exchange Share of retail trading (2009) Share of retail trading (2008)

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 Ex 23% 17%

ISE 50% (Estimated value) Approximatly 50%

MEFF Mini-Futures: 70 to 80% Mini-Futures: 70 to 80% Other products: 5 to 15% Other products: 5 to 15%

NYSE Arca 0.3

Osaka SE All Security Options Put: 25.3%; Equity Options Put: 17%; All Security Options Call: 5.7%; Equity Options Call: 13%

Singapore Exchange Negligible Negligible TAIFEX 44.39% 39%

Thailand Futures Exchange 60% 57% Tokyo SE Very small Very small

Warsaw SE Futures: 52% Futures: 54% Options: 65% 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.


3546 (72%)

1393 (28%)

Equity Derivatives clearing in America in 2008(millions contracts single counted)

The Options Clearing Corporation

Other Exchanges (100% cleared home)

3512 (71%)

1407 (29%)

Equity Derivatives clearing in America in 2009(millions contracts single counted)

The Options Clearing Corporation

Other Exchanges (100% cleared home)

In the Europe, Africa and Middle East region, the two largest clearing organisations 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 main activity is the clearing NYSE Liffe trades on-exchange 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 standardisation of CDS contracts that

should facilitate the clearing process.


1 219 (54.2%)526 (23.4%)

505 ( 22.4%)

Equity and Index cleared in Europe, Africa, Middle East in 2009(millions contracts single counted)

EUREX

Liffe

Other Exchanges

Eurex (OTC)640 (52%)

Eurex

(Non‐OTC) 579 (48%)

Liffe (OTC)261

(49.6%)

Liffe(Non‐OTC)

265 (50.4%)

1 506 (52.4%)

482 (16.8%)

885 ( 30.8%)

Equity and Index cleared in Europe, Africa, Middle East in 2008(millions contracts single counted)

EUREX

Liffe

Other Exchanges

Eurex (OTC)750 (49.8%)

Eurex (Non‐OTC)757(50.2%)

Liffe(OTC)191(39.6%)

Liffe(Non‐OTC)291 (60.4%)

In the Asia Pacific region, all Stock Exchanges have their own clearing houses that clear 100% of the on-

exchange trades.


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 Stock Index ETF STIR LTIR Currency Commodity


Options 3 313 3 685 857 439 116 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%


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 organised 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

thee 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 organisations 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).

0

100

200

300

400

500

600

700

800

Monthly trading volumes

Single Stock Derivatives Stock Index Derivatives Bond derivatives


96%

75%

73%

65%

62%

61%

59%

57%

54%

53%

50%

47%

47%

45%

43%

42%

38%

37%

35%

34%

33%

25%

19%

16%

98%

75%

68%

65%

54%

59%

57%

52%

53%

50%

43%

46%

48%

73%

49%

42%

57%

36%

34%

42%

36%

47%

19%

16%

0% 15% 30% 45% 60% 75% 90%

Wiener Börse


Tel Aviv SE


Budapest SE

Warsaw SE

Boston Options Exchange


Singapore Exchange

BM&F

Osaka SE

Chicago Board Options Exchange (CBOE) …

Bursa Malaysia

MexDer


MEFF

Johannesburg SE

BOVESPA

Korea Exchange

TAIFEX

Hong Kong Exchanges

Montréal Exchange

Eurex

National Stock Exchange of India 2008

2009

Percentage of total trading volume of the 5 most active members

51%

50%

48%

47%

45%

46%

47%

48%

49%

50%

51%

52%

Average Median

2008 2009

Statistics of total trading volume of the 5 most active members

ioma derivative market survey 2009 - final version

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