Trading activity on futures and options exchanges around the
world dropped by 15% last year as market turbulence calmed and
interest rates remained suppressed, according to a report from the
World Federation of Exchanges.
The slide marked the sector's first decline in eight years,
according to the trade body, led by a 23% decline in currency
derivatives volumes and a 19% slowdown among equity-linked
contracts.
About 21 billion futures and options contracts last year changed
hands on exchanges run by members of the Paris-based WFE, according
to results of a survey released Thursday, down from 25 billion
traded in 2011.
Slower trade in futures--the key profit center for exchange
operators like CME Group Inc. (CME) and NYSE Euronext (NYX)--has
forced exchanges to cut staff and curtail ventures into new trading
services, while providing fresh motivation for mergers.
Investors' pullback from derivatives markets was most pronounced
in the previously fast-growing Asia-Pacific region, which last year
fell behind the Americas in terms of trading activity, the WFE
survey found.
Last year's drop in derivatives trade was the first decline
recorded since the WFE began its global derivatives-market survey
in 2004, according to Gregoire Naacke, economist for the
organization.
Influencing the results was a move by Korea Exchange Inc. to
increase the size of its heavily traded stock-index option
contract, resulting in fewer of those contracts changing hands, Mr.
Naacke said. Carving out the KRX move, worldwide derivatives
trading activity would have fallen by about 8%, he said.
Write to Jacob Bunge at jacob.bunge@dowjones.com
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