Equity index derivatives may not have been the fastest growing asset class in 2010, but they probably have the most powerful growth potential. As Elise Coroneos discovers, emerging market contracts are burgeoning, and exchanges are launching a rash of products that let investors in one place trade stockmarkets on the other side of the world.
Equity indices have been
around for decades, but they have never been so popular. And to
judge by the futures and options markets linked to them, the
latest wave of growth in index trading has only just
In 2010, some 7.49bn equity index derivative contracts were
traded at the world’s exchanges – 1bn
more than ever before, and accounting for one third of all
listed derivative trades.
The 16% growth in this market, over 2009’s
levels, helped push the overall futures and options market to a
record high volume.
But aggregate trading statistics do not tell the whole
story. The strongest sign that this growth has a lot further to
run is the rapid expansion of trading in some particular
contracts, especially in emerging markets, and the rash of new
products being launched.
This article is available to subscribers and registered users
Please log in to continue reading.
Not yet registered? Take a free trial.
If you have already taken a free trial you
have ongoing access to the analysis section of FOW.com including this story.
Log in using your details below to read.
Already have an account? |