The FIA.org 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 upswing in global derivatives trading, 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, Latin America, and Europe
North America, the second-largest region in trading volume, recorded a notable increase of 6.2% in futures and options contracts. The total number of these contracts reached 17.9 billion. Besides that, this region dominated in open interest, accounting for 52% of the total open interest globally.
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 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 Corporation retained its position as the world's largest clearinghouse , reporting 482.8 million contracts in open interest, more than double any other derivatives clearinghouse.
