The FIA.org has recently unveiled its report on the global futures and options market for the year 2023, illuminating a remarkable surge in derivatives trading.
This year witnessed an unprecedented surge as the volume of futures and options contracts traded reached an astounding 137.3 billion, marking a staggering 64% increase.
This surge also marked the sixth consecutive year of setting new records in the world of listed derivatives.
Among the various regions contributing to this remarkable growth, India emerged as a significant player, reporting an extraordinary surge of 153% in equity index options trading.
The Asia-Pacific region experienced a striking increase of 104%, with trading volume reaching an astonishing 103.5 billion contracts.
In North America, the second-largest region in terms of trading volume, there was a notable increase of 6.2%, with the total number of contracts reaching 17.9 billion.
Furthermore, North America dominated the field of open interest, accounting for a remarkable 52% of the global open interest.
Latin America displayed resilience in the face of global fluctuations, maintaining a consistent trading volume of 8.6 billion contracts.
European volumes saw a modest rise of 2.6%, reaching 4.9 billion contracts, while the Middle East and Africa experienced a notable decline of 20% in trading volume.
Equity-related derivatives played a pivotal role in driving the overall surge, contributing significantly to the upward trend. Futures and options based on equity indices witnessed an impressive surge of 105%, totaling 99.9 billion contracts in 2023.
When it comes to currency and interest rate futures, currency futures and options faced an 8% drop, totaling 7.1 billion contracts, mainly attributed to a substantial decline in currency futures trading.
On the other hand, interest rate futures and options experienced a noteworthy boost of 18%, reaching a total of 6.1 billion contracts.
Commodities, including agricultural and energy derivatives, also saw double-digit increases in trading volume.
North America continued to lead in open interest, boasting 648 million contracts at the end of the previous year, representing a 6.8% increase from 2022 and accounting for 52% of global open interest.
Meanwhile, the National Stock Exchange of India claimed the top position in both total volume and growth rate, reporting an impressive increase of 123%, with a total trading volume of 84.8 billion contracts.
Maintaining its stronghold, the Options Clearing Corporation retained its status as the world’s largest clearinghouse, reporting a staggering 482.8 million contracts in open interest, surpassing any other derivatives clearinghouse by a significant margin.