2008 IOMA Derivatives Market Survey - for WC

8/7/2019 2008 IOMA Derivatives Market Survey - for WC

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IOMA Derivatives Market Survey 2008

Conducted by WFEWith the help of Didier Davydoff andGrgoire NaackeIEM Finance

May 2009


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As of May 2009, the members of IOMA / IOCA were: Athens Derivatives ExchangesAustralian Securities ExchangeBM&FBOVESPABolsa de Comercio de Buenos AiresBolsa de Comercio de Santiago

Bombay Stock ExchangeBorsa ItalianaBursa Malaysia DerivativesBursa Malaysia Derivatives ClearingCanadian Derivatives ClearingChicago Board Options ExchangeCME GroupEurex FrankfurtEurex ZrichHong Kong Exchanges and ClearingICE Futures

International Securities ExchangeJohannesburg Stock ExchangeKorea ExchangeLCH.Clearnet

MEFFMercado Mexicano de Derivados (Mexder)NYSE EuronextNYSE LiffeNASDAQ OMX Group

National Stock Exchange of IndiaOsaka Securities ExchangeOslo BrsSingapore ExchangeTaiwan Futures ExchangeTel-Aviv Stock ExchangeThailand Futures ExchangeThe Clearing CorporationThe Options Clearing CorporationTMX GroupTokyo Stock Exchange

Warsaw Stock ExchangeWiener BrseZhengzhou 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.


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IOMA Derivatives Market Survey 2008 May 2009 3

International Options Market Association (IOMA) 2008 Derivatives Market Survey Table of Contents Introduction ................................................................................................................................ 4

The industry structure ................................................................................................................. 5 The global derivatives market .................................................................................................... 8

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

A - Equity products .......................................................................................................... 11

Stock options ......................................................................................................... 13

Stock futures .......................................................................................................... 18

Index options ......................................................................................................... 20

Index futures .......................................................................................................... 25

B Interest rate products ................................................................................................. 30

STIR options and futures ....................................................................................... 31

LTIR options and futures ...................................................................................... 35

C Currency products ...................................................................................................... 41

D - Commodity derivatives .............................................................................................. 46

Energy derivatives ................................................................................................. 51

Metal derivatives ................................................................................................... 52

Agricultural derivatives ......................................................................................... 52 Gathering statistics on retail trading ......................................................................................... 54

OTC trades registered by exchanges ........................................................................................ 55

Prospects for clearing organizations......................................................................................... 57

Conclusion ................................................................................................................................ 59


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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 it covers 51 exchanges. Some of these exchanges trade a wide

range of derivatives contracts, while many specialize in a single area of the market. The survey results

were analyzed into six groups representing underlying assets:

Single equity

Equity indices

Short -term interest rates

Long -term interest rates

Currencies

Commodities

The survey was compiled from questionnaire responses sent by IOMA members, and data from

exchange websites. The authors wish to thank exchanges which responded to the questionnaire, and

especially exchange staff who gave further assistance in response to enquiries.

The report begins with a brief overview of changes to the structure of the industry during 2008. 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 2007 for all exchanges. The study ends with

Concluding Remarks, which raise further questions for consideration.

The findings of this report were presented by Didier Davydoff at the IOMA/IOCA Annual Conference

held in Frankfurt in April 2009.


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The industry structure Several mergers and acquisitions were initiated or completed in 2008:

In May 2008, BOVESPA Holding and BM&F were integrated into a new corporation namedBM&FBOVESPA SA. Both markets are very complementary: the main strength of BOVESPAmarket is its equity option trading, while the most active contracts on BM&F markets areinterest rate and currency derivatives.

In May 2008, TSX Group and Montral Exchange finished the completion of their business

combination to create TMX Group Inc.

In July 2008, NASDAQ OMX Group completed the acquisition of the Philadelphia StockExchange, expanding the NASDAQ OMX Groups presence in the derivatives market. ThePhiladelphia Stock Exchange is renamed NASDAQ OMX PHLX.

In September 2008, the CME Group completed its acquisition of NYMEX Holdings. We recallthat CME and CBOT had merged to form the CME group in July 2007. In the IOMA survey2007, we presented statistics relating to the former CME and the former CBOT separately. Forthe present 2008 survey, we present aggregate statistics for the whole group: CME + CBOT +NYMEX. On the whole, 3.1 billion contracts were traded in 2008 on the CME Group markets.

In September 2008, the Montral Exchange (a TMX Group company) completed anacquisition giving it a majority ownership interest of 53.2% in the Boston Options ExchangeGroup (BOX). However, statistics relating to the two exchanges remain separate.

In October 2008, NYSE Euronext completed its acquisition of the American Stock Exchange,becoming the third-largest US optio ns marketplace. Statistics of the new entity NYSE Amexare presented separately in the present report.

In October 2008, Wiener Brse acquired a stake in the Ljubljana Stock Exchange and theBudapest Stock Exchange and became the majority owner of the two stock exchanges.

For the first time, statistics of commodities derivatives traded on the German RWX Risk Management

Exchange, the former WTB based in Hanover, are included in the present report. In March 2009,

Eurex expressed its interest in acquiring RWX.

In 2008, several exchanges added a new category of underlyings to their existing range of products.

Symmetrically, some categories of underlyings were dropped from the listings on some exchanges or

were no longer traded.


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Products added or dropped during 2008 Added DroppedStock options Warsaw Stock ExchangeStock futures Korea Exchange, Thailand Futures ExchangeStock index options Budapest Stock ExchangeSTIR futures Budapest Stock ExchangeLTIR futures Hong Kong Exchange, Warsaw Stock ExchangeCurrency futures NSE IndiaCommodity options Tokyo Grain ExchangeCommodity futures Hong Kong Exchanges Singapore Exchange

On average, exchanges offer four different product lines (excluding exotic products). NYSE Liffe(European markets) and the Australian Securities Exchange have the most diversified offer (11

different product lines) while nine exchanges offer one product line only.

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,

12 said they do plan on offering new products outside of their current asset classes during 2009 and

10 said they do not.

Most frequently cited classes of products are exotic derivatives, such as carbon options on the Hong

Kong exchanges, or credit options and new volatility futures on CBOE.

The Australian Securities Exchange, TAIFEX and Eurex have the most numerous projects, each of

them planning to offer new products in six asset classes in 2009. For example, Eurex intends to

launch commodity index futures, and options and futures on energy. Eurex also launched the first

property futures in February 2009, based on the IPD UK annual All Property Index.

The London Stock Exchange intends to list exchange traded contracts for Difference on the FTSE100

equity underlyings.


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

Australian SENYSE Liffe (European markets)

BM&FBOVESPACME Group

Johannesburg SEMexDer

Montral ExchangeEurex

Korea ExchangeNASDAQ OMX Nordic Ex changes

Budapest SEHong Kong Exchanges

ICE Futures U.S.TAIFEX

MEFFNational St ock Exchange of India

Singapore ExchangeAthens Derivatives

Borsa ItalianaBursa Malaysia

Chicago Board Options Exchange (CBOE)NASDAQ OMX PHLX

Oslo BrsROFEX

Turkish Derivatives ExchangeWiener Brse

Bombay S tock ExchangeInternational Securities Ex change (ISE)

Osaka SETokyo Stock Ex change Group

Tel Aviv SETokyo Financial Ex change

Warsaw SEBuenos Aires SE

ICE Futures CanadaICE Futures Europe

London Metal ExchangeMercado a Trmino de Buenos Aires

NYSE AmexOne Chicago

Thailand Futures Exchange (TFEX)Tokyo Stock Ex change Group

Boston Options ExchangeCentral J apan Commodity Exchanges

Dalian Commodity ExchangeNYSE Arca Options

RMXShanghai Futures Exchange

Thailand Futures Exchange (TFEX)Tokyo Grain Ex change

Zhengzhou Commodity Exchange

Number of product lines

1) Single stock options2) Single stock futures3) Stock index options4) Single index futures5) STIR options6) STIR futures7) LTIR options8) LTIR futures9) Currency options10) Currency futures

11) Commodity options12) Commodity futures


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The global derivatives market 17 billion derivative contracts were transacted in 2008 on exchanges worldwide (7.8 billion futures and

9.3 billion options). These figures are apparently positive as they represent a new historic record.

However, we will show below that these figures hide wide disparities between products and between

the first three quarters of the year and the last quarter, Lehman Brothers coll apse marking a profound

break in the activity of the derivatives markets

9.28 Billion7.79 Billion

OptionsFutures

2008 Worldwide derivatives volume17 billion contracts trades

0

2

4

6

8

1012

14

16

18

Options Futures Total

Billion contracts

2002

2003

2004

2005

2006

2007

2008

Derivatives volume growth


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The pace of growth in 2008 (+13%) was significantly below the two previous years. Although futures

declined the most, their growth is still superior (+14%) to that of options (+11%). Futures growth is the

lowest for six years and that for options is similar to 2005 and 2006. Again, the break of September

triggered a much stronger slowdown, especially for futures.

0%

5%

10%

15%

20%

25%

30%

35%

40%


2003/02

2004/03

2005/04

2006/05

2007/06

2008/07

Derivatives volume growth rate

The global activity of derivatives exchanges is heavily influenced by the weight of the Korea Exchangein equity index options trading. When KOSPI 200 options traded on the Korean market are excluded

from statistics, the growth rate of options trades is the weakest since 2003.

0%

5%

10%

15%

20%

25%

30%

35%

40%


2003/02

2004/03

2005/04

2006/05

2007/06

2008/07

Derivatives volume growth rate(Excluding KOSPI 200 options in Korea)


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Exchange and products trends

In 2008, the growth rate in the volume of equity derivatives was more than halved compared to

2007, even if KOSPI 200 options are taken into account or not.

For the first time since 2003, negative growth rates were observed on all groups of interest rate

products.

The growth rate of currency derivatives was ten times lower compared to 2007.

Commodity derivatives, driven by Chinese markets, seem to be the only segment that has not been

affected by the financial crisis.

0,0

0,3

0,6

0,9

1,2

1,5

1,8

2,1

0

2

4

6

8

10

12

14

2002 2003 2004 2005 2006 2007 2008

Currency and commodity

Equity and interest rate

Equity

Interest rate

Currency

Commodity

Contracts traded by product group (billion contracts)

2008/2007 volume growth rate

Stock Stock index STIR LTIR Currency Commodities

Options 17.1 % 8.9 % - 6.3 % - 9.4 % 16.6 % 16.4 %Futures 66.0 % 34.0 % -18.3 % -13.6 % 3.5 % 37.8 %


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Notional amounts outstanding of OTC equity-linked derivatives

Notional amountsin billion of USD Annual

June 2007 June 2008 Change

American Options 1 112 1 300 17%

Equities Forwards & swaps 795 764 -4%

European Options 3 769 4 750 26%

Equities Forwards & swaps 1 289 1 384 7%

Asian Options 949 1 010 6%

Equities Forwards & swaps 107 132 23%

Other Options 288 460 60%

Equities Forwards & swaps 280 377 35%

Total 8 590 10 177 18% Source : Bank for International Settlements

Stock options

In 2008, the growth rate of trading volumes was still very high, although it was half as compared to the

exceptional year of 2007 (17% against 34%). However, the contrast is striking between the growth rateof the first three quarters and year-end, and between the growth rates across countries. Before the

announcement of Lehman Brotherss bankruptcy, the volumes were already on a path of slower

growth than in 2007, especially in Europe. They soared in September, but then slumped on all

Asian/Pacific exchanges from October and in other regions in November. To date they have failed to

show an upturn.


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-40%

-30%

-20%

-10%

0%

10%

20%

30%

40%

50%

60%

70%

Jan-Aug 08 Sep-08 Oct-08 Nov-08 Dec-08 Jan-09 Feb-09

Annual growth rate of stock options volume

Americas

Asia - Pacific

Europe - Africa - Middle East

The United States continue to dominate the stock options market with the four most active exchanges

in the world (ISE, CBOE, NASDAQ OMX PHLX and NYSE Arca Options). Trading on individual

equities and especially ETFs has continued to grow rapidly. 300 millions options on ETFs were traded

on ISE (+62%) and 330 millions on CBOE. At the same time, data available from CBOE shows that

the open position at the end of the year remained stable, which implies an increase in the velocity oftrading for these contracts, probably due to the development of programme trading. On average, the

open position in options on ETFs rotated in 1.6 months against 2.5 months in 2005. Options on ETFs

tend to become substitutable trading tools to index options. For instance, the 97 millions options on

S&P 500 ETF traded in 2008 on CBOE (many of them emanating from electronic algorithmic trading

by hedge funds) represented an increase of 97% over 2007, while volumes of S&P 500 index options

traded on the same exchange grew by only 13%.

An additional trend in 2008 was the rise of options on sector ETFs. The options on the financial sector

SPDR became the third most active option on ETFs on CBOE (25.9 million traded options, i.e. almost

four times more than in 2007). In June 2008, options were launched on the SPDR Gold Trust ETF, an

ETF holding physical gold listed on the NYSE and which is one of the biggest ETFs in the United

States in terms of assets under management.

In South America, BM&FBOVESPA declined slightly but Petrobas PN options remain the most actively

traded stock options in the world with 210 million contracts traded in 2008 against 279 million in 2007.


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In Europe, Athens Exchange has experienced the strongest growth of any exchange in the world.MEFF and Johannesburg Stock Exchange have continued to grow rapidly. The growth of Eurex was

somewhat slower (9%) but this exchange consolidated its leading position in Europe, while other

exchanges in that region (including the second biggest, NYSE Liffe) either stabilised or declined.

Stock option trading in Asia-Pacific is still dominated by Hong Kong Exchanges & Clearing, despite a

very severe downturn after the Lehman bankruptcy. The National Stock Exchange of India and Osaka

Stock Exchange increased their volumes by approximately one fifth, but ASX, TAIFEX and Tokyo

Stock Exchange declined.

17%

-80%

-52%

-39%

-33%

-28%

-28%

-18%

-18%-12%

-5%

-2%

-1%

9%

17%

19%

20%

22%

24%

25%

25%

31%

35%

35%

37%

71%

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

ALL EXCHANGES

Korea Exchange

Buenos Aires SE

Tokyo Stock Exchange Group

TAIFEX

NASDAQ OMX Nordi c Exchanges

Australian SE (1)

Wiener Brse

Oslo BrsNYSE Amex (1)

BM&FBOVESPA (1)

Borsa Italiana

NYSE Liffe (Europ ean markets)

Eurex (1)

Montral Exchange (1)

Hon g Kong Exchanges (1)

Osaka SE

Nation al Stock Exchange of In dia

NYSE Arca Optio ns (1)

Johannesburg SE

ISE (1)

CBOE (1)

MEFF

NASDAQ OMX PHLX

Bosto n Options Exchange (1)

Athens Derivatives (2)

2008/2007 % Change in stock options volume

(1) Including options on ETF (2) REPOs not included


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0 200 400 600 800 1 000

International Securities Exchange(ISE) (1)

CBOE (1)

NASDAQ OMX PHLX

NYSE Arca Opti ons (1)

BM&FBOVESPA (1)

Eurex (1)

NYSE Amex (1)


Bosto n Options Exchange (1)


NASDAQ OMX Nordi cExchanges

Other exchanges

Millions

Stock options contract volume

2007 2008

5,125

1,524

0,855

0,759

0,262

0,226

0,183

0,113

0,075

0,056

0,051

0,052

4,924

1,604

1,056

0,954

0,605

0,163

0,339

0,148

0,099

0,080

0,085

0,059

0 1 2 3 4 5 6

CBOE (1)

Eurex (1)

BM&FBOVESPA (1)


Australian SE (1)

NASDAQ OMX PHLX


Borsa Italiana

Mon tral Exchange (1)

NYSE Amex (1)

Nation al Stock Exchange of India

Other exchanges

USD trillions

Stock options notional value

2007

2008

(1) Including options on ETF (2) REPOs not included NB: Notional values are not available for the Boston Options Exchange, Buenos Aires Stock Exchange, ISE, NASDAQ OMX Nordic Exchanges,

NYSE Arca Options, Osaka Stock Exchange and Tokyo Stock Exchange.

0

500

1 000

1 500

2 000

2 500

3 000

3 500

4 000

Americas Asia Pacific Europe, Africa, MiddleEast

Millions

Stock options volume by geographical zone

2007

2008


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The most actively traded stock options in the world

Underlying equity ExchangeMillions ofcontracts

Marketshare

Opt. Prem.billion $

2008 2007 2008 2007 2008 2007

Petrobras PN BM&FBOVESPA 210,2 279,1 4,8% 7,5% 14,5 13,8

Vale R Doce PNA BM&FBOVESPA 130,0 79,7 3,0% 2,1% 6,9 5,5

S&P 500 ETF Options CBOE 96,9 49,2 2,2% 1,3% 27,7 14,9

SPY ISE 81,2 37,0 1,9% 1,0% NA NA

iShares Russell 2000 ETF Options CBOE 72,7 75,8 1,7% 2,0% 20,8 22,9

PowerShares QQQ ETF Options CBOE 61,2 43,2 1,4% 1,2% 17,5 13,1

Allianz Eurex 54,0 41,6 1,2% 1,1% 9,1 5,5PowerShares QQQ ETF Options ISE 49,0 57,3 1,1% 1,5% NA NA

S&P 500 ETF Options NYSE Arca Options 41,4 NA 0,9% NA NA NA

iShares Russell 2000 ETF Options ISE 40,3 42,7 0,9% 1,1% NA NA

Deutsche Telekom Eurex 31,9 30,9 0,7% 0,8% 6,2 3,3

PowerShares QQQ ETF Options NYSE Arca Options 30,6 NA 0,7% NA NA NA

Financial Select Sector SPDR CBOE 25,9 6,8 0,6% 0,2% 7,4 2,0

ING NYSE Liffe 23,2 16,0 0,5% 0,4% 7,3 4,8

Mnchener Rckversicherung Eurex 22,0 19,5 0,5% 0,5% 2,8 1,5

S&P 500 ETF Options NYSE Amex 21,2 14,5 0,5% 0,4% NA NA

Citigroup Inc. ISE 20,9 NA 0,5% NA NA NA

Apple Inc. ISE 20,1 NA 0,5% NA NA NA

PowerShares QQQ ETF Options NYSE Amex 20,1 22,3 0,5% 0,6% NA NA

Nokia Eurex 17,3 16,4 0,4% 0,4% 3,5 2,7

Ericsson B NASDAQ OMX Nordic 17,3 35,1 0,4% 0,9% NA NA

Deutsche Bank Eurex 16,2 11,8 0,4% 0,3% 24,9 22,5

SAP Eurex 15,6 17,5 0,4% 0,5% 1,9 1,6

Financial Select Sector SPDR NYSE Arca Options 15,5 NA 0,4% NA NA NA

iShares Russell 2000 ETF Options NYSE Arca Options 14,2 NA 0,3% NA NA NA

Fortis NYSE Liffe 14,0 7,5 0,3% 0,2% 3,9 1,9

iShares MSCI Emerging Markets Index CBOE 13,7 7,8 0,3% 0,2% 3,9 2,4

Daimler Eurex 13,7 0,0 0,3% 0,0% 22,3 0,0

XLF NYSE Amex 13,4 6,7 0,3% 0,2% NA NA

UBS Eurex 12,9 7,7 0,3% 0,2% 6,7 3,1

Royal Dutch Shell NYSE Liffe 12,6 12,7 0,3% 0,3% 3,2 2,5

Apple Inc. NYSE Arca Options 11,0 NA 0,3% NA NA NA

Microsoft Corp. ISE 10,6 NA 0,2% NA NA NA

Yahoo! Inc. ISE 10,6 NA 0,2% NA NA NA

Diamonds Trust, Series 1 CBOE 10,4 8,0 0,2% 0,2% 3,0 2,4


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Stock futures

In 2008, the stock futures market continued to grow more rapidly than other segments of the

derivatives market. The annual growth rate in 2008 was 66% after having doubled in 2007.

This market remains located in the Europe-Africa region and in the Asia-Pacific region. In North

America the only exchange proposing this class of products for trading is OneChicago where trading

fell by a half in 2008 compared to 2007.

Johannesburg Stock Exchange retained its leading position in terms of number of contracts traded.

Eurex became the third most active exchange in the world in terms of traded volumes, and the second

one in terms of notional value exchanged. NYSE Liffe was again very successful in attracting OTC

trades in stock futures to its OTC registration system BClear. MEFF and NASDAQ OMX Nordic

Exchanges also experienced very rapid growth.

In Asia, the National Stock Exchange of India remains the most active exchange in the world in terms

of notional value while other exchanges are developing rapidly. The case of the Australian Securities

Exchange is especially impressive, where volumes quadrupled, thus propelling it to become the fifth

largest exchange in the world for this group of products. A new player appeared in May, the KoreaExchange, which already recorded 12 million contracts in 8 months.

-20%

0%

20%

40%

60%

80%

100%

120%

140%


Annual growth rate of stock futures volume

Asia - Pacific

Europe - Africa - Middle East


19/83


1 001

628

501

90

42

32

7

6

6

7

1 683

234

382

56

50

63

13

7

0

13

0 500 1 000 1 500 2 000

NSE Indi a

Eurex (1)

NYSE Liffe (Europ eanmarkets)

MEFF

Johannesburg SE

Borsa Italiana

Budapest SE

Athens Derivatives Ex.

Korea Exchange

Other Ex.

USD Billio n

Stock futures notional value

2007

2008

66,0%

-99,6%

-53,0%

-33,0%

-30,6%

-26,9%

-23,9%

-20,3%

25,9%

39,7%

58,6%

65,4%

75,8%

117,1%

148,2%

190,9%

423,3%

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

ALL EXCHANGES

Bombay Stock Exchange

OneChicago (1)

Oslo Brs

Borsa Italiana

Hon g Kong Exchanges

Budapest SE

Wiener Brse


Athens Derivatives Ex.

Johannesburg SE


NASDAQ OMX Nordic Exchanges

MEFF

Eurex (1)

Warsaw SE

Australian SE (2)

2008/2007 % Change in stock futures volume

(1) Including futures on ETF (2) Including single stock CFDs

- 100 200 300 400

Joh annesburg SE

Nation al Stock Exchange ofIndia

Eurex (1)


Australian SE (2)

MEFF

NASDAQ OMX Nord icExchanges

Korea Exchange

Other Ex.

Millions

Stock futures contract volume

2007

2008

(1) Including futures on ETF (2) Including single stock CFDsNB: Notional values are not available for OneChicago.


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0

100

200

300

400

500

600

700

800

Americas Asia Pacific Europe, Africa, Middle East

Millions

Stock futures contract volume by geographical zone

2007

2008

Index options The index options market had a very mixed year in 2008 and early 2009. After an extraordinary year in

2007 (+38% excluding figures for Korea), the market grew again although at a slower pace in Europe.

It declined slightly in the Americas and in Asia over th e first eight months, before Lehman Brothers

bankruptcy. The sharp increase in market volatility translated into exceptional volumes of trading in

September and October. However, the liquidity crisis of the interbank market dried up the market at

years e nd and in February 2009 volumes were still lower than in the previous year, except in Asia.


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-40%

-20%

0%

20%

40%

60%

80%

100%


Annual growth rate of index options volume

Americas

Asia/Pacific

Europe/Africa/Mid. East

In total over the year 2008, exchanged volumes increased by 9%, all regions included. As in previous

years, the weight of Korea is still predominant, although it declined slightly from 72% to 68%.

Excluding figures for Korea, the annual growth amounted to 27%. KOSPI 200 options volumes rose

2% in 2008 (against 12% in 2007) and reached 2 766 million contracts.

In Europe, Eurex remained the most active exchange by far. Its flagship product, the Dow Jones Euro

STOXX 50 options, has remained on a strong upward trend, with 401 million contracts traded, an

increase of 59%, following rises of 68% in 2007 and +65% in 2006. Other contributors to the growth of

the exchange were the 105 million traded DAX options (+14%) and the European sectoral index

options (2 million contracts, +61%).

In Europe, MEFF also had a very active year on the mini IBEX options (+46%). On NYSE Liffe, thepicture was mixed: the FT100 index options became the first index option contract traded on this

exchange (29 million contracts, +23% over 2007) ahead of the Dutch AEX and the French CAC 40

which decreased slightly. All other exchanges in the Europe, Africa and Middle East region recorded

lower volumes of trading in 2008 than in 2007. However, the Tel Aviv Stock Exchange, with 81 million

contracts, retained its sixth position worldwide.

In the Americas, trading in index options stabilised or decreased slightly in 2008, except during the

months of September and October. In February 2009, trading volumes were still lower than the

previous year. However, the exceptional activity of September and October allowed most NorthAmerican exchanges (except NYSE Amex) to record a positive growth in 2008 over 2007. Moreover,


22/83


one should take into account that more and more option trades are based on index ETFs, included in

the single equity options statistics in the present survey (see above). CBOE remains the second

exchange in the world for the notional value of index options exchanged, behind the Korea exchange

but ahead of Eurex. The flagship S&P 500 contract recorded 179 million contracts traded (+13%), and

the Russel 2000 took the second position, with a volume that more than doubled. CME Group also

kept its fourth position worldwide in terms of notional value.

In South America, BMF&BOVESPA continues to grow rapidly.

In the Asia Pacific region, the most remarkable trend, apart from the performance of the KOSPI

options already mentioned, is the rise of the National Stock Exchange of India, whose business onindex options almost tripled for the second successive year and reached 150 million contracts traded.

With 98 million contracts, TAIFEX confirms its third position in that region. The Nikkei 225 options

traded on the Osaka Securities Exchange grew 10% and the number of trades on that contract

increased markedly, up 71%. In the first two months of 2009, trading in Nikkei 225 options slowed

down.

Overall, the concentration of index option trading on main underlying indexes increased again: the top

ten index options after KOSPI 200 options accounted for 87% of the global index options trading in

2008 (excluding the KOSPI index) against 82% in 2007.


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9%-100%

-60%-46%-43%-40%

-30%-28%

-21%-21%

-19%-17%-14%-14%

-1%0%1%2%6%

8%10%

13%13%

14%30%46%46%46%92%186%217%428%

-100% -50% 0% 50% 100%

ALL EXCHANGESBudapest SE

MexDerNYSE Amex

Sing apore ExchangeHon g Kong Exchanges

Athens Deri vatives ExchangeWiener Brse

Oslo BrsNASDAQ OMX PHLX

Bombay Stock ExchangeJohannesburg SE

Warsaw SETel Aviv SE

Borsa ItalianaNASDAQ OMX Nord ic Exchanges

TAIFEXKorea Exchange

NYSE Liffe (Europ ean markets)CME Gro up

Osaka SEAustralian SE

CBOEISE

BM&FBOVESPAEurex

Mon tral ExchangeMEFF

ICE Futures U.S.Nation al Stock Exchange of In dia

Tokyo Stock Exchange GroupThailand Futures Exchange (TFEX)

2008/2007 % Change in index option volume


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259

151

98

81

67

44

32

20

18

51

353

231

53

97

94

63

41

29

20

16

63

0 100 200 300 400 500

Korea Exchange

Eurex

CBOE

Nation al Stock Exchange of In dia

TAIFEX

Tel Aviv SE


CME Gro up

Osaka SE


Intern ational Securities Exchange(ISE)

Other Ex.

Millions

Index options contract volume

2007

2008

515

27102766

0 5 10 15 20 25 30

Korea Exchange

CBOE

Eurex

CME Group


Tel Aviv SE

TAIFEX

Other Ex.

USD trillions

Index options notional value

2007

2008

63.3 Tril42.7 Tril

NB: Notional values are not available for the BMF&BOVESPA, ICE Futures US, ISE, Osaka Stock Exchange and Singapore Exchange.

0

500

1 000

1 500

2 000

2 500

3 000

3 500

Americas Asia Pacif ic Asia Pacif ic Excl. Ko rea Euro pe, Af rica, Midd le East

Millions

Index options contract volume by geographical zone

2007 2008


25/83


The most actively traded index options in the world

Underlying Index ExchangeMillions ofcontracts

Market sharein 2008

Opt. Prem.billion $

2008 2007 Total Ex. Korea 2008 2007

Kospi 200 Korea Exchange 2 766 2 710 67,9% 211,1% 257,9 235,2

Euro Stoxx 50 Eurex 400,9 251,4 9,8% 30,6% 740,8 392,7

S&P 500 CBOE 179,1 158,1 4,4% 13,7% 621,3 349,8

S&P CNX Nifty Index NSE India 150,9 52,7 3,7% 11,5% 17,1 6,3

DAX Eurex 104,9 91,9 2,6% 8,0% 133,7 93,9

TAIFEX TAIFEX 92,8 92,6 2,3% 7,1% NA NA

TA 25 Tel-Aviv SE 81,4 94,3 2,0% 6,2% 3,1 3,0

S&P 500 and E-MINI S&P 500 CME Group 38,5 35,7 0,9% 2,9% NA NA

Nikkei 225 Osaka SE 32,1 29,2 0,8% 2,5% 48,6 28,4

FTSE 100 (incl. Index FLEX Options) NYSE Liffe 30,7 24,7 0,8% 2,3% 90,7 63,5

AEX NYSE Liffe 27,5 28,4 0,7% 2,1% 33,5 28,0

Volatility Index Options CBOE 26,0 23,4 0,6% 2,0% 5,2 3,4

Index futures

The growth of index futures trading decreased in 2008, but less markedly than for other equity

derivatives. For the whole year the annual growth rate of the number of contracts traded amounted to

34%, in contrast to 45% in 2007 and 32% in 2006. Trading in index futures continued to grow very

rapidly until October 2008, especially in the Americas and in Asia-Pacific. It remained vibrant in Asia

until the end of the year. But from November 2008, the growth of trading was interrupted on a majority

of exchanges.


26/83


-40%

-20%

0%

20%

40%

60%

80%

100%

120%


Annual growth rate of index futures volume

Americas

Asia - Pacific

Europe -Africa - Middle East

In the United States, the merger of CME and CBOT has further strengthened the dominant position of

the first actor, the CME Group, with a market share of 95% in the United States and 39% in the world.

ICE Futures US, the second exchange offering index futures in the United States attained a market

share of 2% in the United States. Other exchanges in the Americas recorded mixed figures, with

OneChicago, Montral Exchange and Mexder growing, while BM&FBOVESPA suffered a 24%decrease in trading.

In Europe, Eurex again increased its market share, thanks to the Dow Jones Euro STOXX 50 futures

which accounted for 85% of the recorded volumes on that exchange. Futures on the SMI also grew

significantly, while the DAX future declined slightly. Some sectoral indices have also shown increased

trading. For example, the Dow Jones STOXX 600 Banks Future ranks as the fourth most actively

traded contract on Eurex.

The second most active exchange in the region, namely NYSE Liffe, increased 14%. The most active

contract remains the CAC 40, but the most significant progression is observed on the FTSE 100.

Contracts on the BEL 20 and the AEX indices were stable, while the Portuguese PSI declined. It is

interesting to note that the number of trades is increasing faster than the number of contracts traded,

pushed up by automatic trading. For example, the number of trades on the FTSE100 increased 82%

whereas the number of traded contracts increased 26%. The average number of contracts per trade

obviously diminished correlatively. In 2008 each trade was based on 1.6 contracts on the AEX, on

average, and 2.3 contracts on the FTSE 100 and the CAC 40.


27/83


Several smaller exchanges in the Europe, Africa, Middle East region also performed very well in 2008.

The Turkish Derivatives Exchange recorded more than 40 million contracts traded although the

notional value of those contracts is still relatively low. Oslo Brs almost doubled its recorded volumes.

NASDAQ OMX Nordic exchanges, Warsaw Stock Exchange and Borsa Italiana also grew.

In Asia, The National Stock Exchange of India (NSEI) continues to be very successful with a number

of contracts traded that rose 46% and a number of trades that almost doubled over 2007. In contrast,

activity on the Bombay Stock exchange diminished and is only marginal when compared to the NSEI.

The Osaka Securities Exchange recorded a strong increase (+65%) in the number of contracts traded

and in the number of trades which doubled over the year. This trend is mainly due to the Nikkei 225Mini, a contract for which retail trading represents as much as 39% of total trading. Again in 2009, the

Nikkei 225 Mini has grown significantly, while the Nikkei 225 (for which retail trading accounts for 13%)

registered a significant slowdown in January and February.

TAIFEX, the Thailand Futures Exchange (TFEX) and the Singapore Exchange were among the

exchanges with the highest speed of growth for index futures trading in the world. In Korea, futures on

the KOSPI 200 are not as predominant as options on the global derivatives landscape, but they grew

by almost 40% over 2007.

On the Hong Kong Exchanges and Clearing, traded contracts increased 37%, while the number of

trades increased 54%. It should be noted that the strongest increase recorded was for the Mini Hang

Seng index future, a contract predominantly traded by retail investors.


28/83


34%

-57%

-24%

-9%

-7%

-6%

-5%

2%

3%

14%

14%

16%16%

21%

23%

24%

26%

28%

33%

37%

39%

40%

46%

49%50%

65%

67%

71%

90%

92%

137%

-100% -50% 0% 50% 100% 150%

ALL EXCHANGES

Bombay Stock Exchange

BM&FBOVESPA

Budapest SE

Bursa Malaysi a

MEFF

Johannesburg SE

CBOE

Athens Derivatives


MexDer

Tokyo Stock Exchange GroupBorsa Italiana

Montral Exchange

Australi an SE

NASDAQ OMX Nord ic Exchanges

Warsaw SE

Eurex

CME Group

Hong Kong Exchange

Korea Exchange

OneChicago

National Stock Exchange of India

Sing apore ExchangeTel Aviv SE

Osaka SE

Wiener Brse

Thailand Futures Exchange (TFEX)

TAIFEX

Oslo Brs

Turki sh Derivatives Exchange

ICE Futures U.S.

2008/2007 % Change in index futures volume


29/83


0 200 400 600 800

CME Group

Eurex

National Stock Exchange of India

Osaka SE


Korea Exchange

Singapore Exchange

Hong Kong Exchange



TAIFEX

Australian SE

BM&FBOVESPA

Tok yo Stock Exchange Group

Johannesburg SE

ICE Futures U.S.

Other Ex.

Millions

Index futures contract volume

2007

2008

0 10 20 30 40 50 60

CME Group

Eurex


Korea Exchange

Osaka SE

Hong Kong Exchange


Australian SE

MEFF

Borsa Italiana

TAIFEX


Montral Exchange

BM&FBOVESPA

Johannesburg SE

Other Ex.

USD trillions

Index futures notional value

2007

2008

NB: Notional values are not available for ICE Futures U.S., NASDAQ OMX Nordic Exchanges, OneChicago and Singapore

Exchange.

0

100

200

300

400

500

600

700

800

900

1 000


Millions

Index futures volume by geographical zone

2007 2008


30/83


B Interest rate products

Trading in all types of interest rate products diminished in 2008, especially in futures.

Overall, traded volumes are down 14%, the largest decline being on short term interest rate

futures (-18%), but this is largely due to a specific event on Mexder where a short term interest

rate contract has been replaced by a long term one. Regardless of Mexder, the trend on long

term interest rate futures would be less negative (-9%) than on other contracts. Long term interest

rate futures decline is in line with the overall trend of interest rate products (-14%), while options

are a little less affected (- 6% for short term and -9% for long term products).

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

2002 2003 2004 2005 2006 2007 2008

Options

Futures

STIR futures

LTIR futures

STIR options

LTIR options

Interest rate products volume growth (billion contracts)


31/83


STIR options and futures

The global volume recorded fell 6% for STIR option trading and 18% for futures in 2008.

The global concentration of markets remained extremely strong in 2008. 95% of options were traded

on the CME Group or NYSE Liffe, while the market share of those two markets on futures rose from

64% to 76%.

On NYSE Liffe, all options grew strongly, the Euribor (+44%) more than the Three Month Sterling. The

Three Month Sterling Mid Curve tripled and reached 12 million contracts traded. As for futures, a

decline was observed on the Three Month EuroSterling and the Three Month EuroSwiss options, while

Euribor futures were stable compared to 2007.

With regards to the CME Group, most trading is concentrated on the Eurodollar futures which remain

the most active STIR contract in the world (597 million contracts) despite a slight decrease in 2008.

Eurodollar options are also the most active STIR options globally, but a sharp decrease of 27% was

recorded in 2008.

In the Americas, the sharp decrease in the number of futures traded on Mexder is due to theintroduction at end of 2007 of a substitutable long term interest rate product, the 10-year interest rate

swap future (see below).

Both STIR options and futures are also traded on BM&FBOVESPA and Bourse de Montral and they

were generally less active in 2008 than in 2007, except for options on BM&FBOVESPA.

All other exchanges where STIR options are traded declined except on NASDAQ OMX where 17

million futures were traded.


32/83


229

187

21

1

1

1

313

136

14

4

1

2

0 100 200 300

CME Group

NYSE Liffe (European mark ets)

BM&FBOVESPA

Tok yo Financial Exchange Inc.


Other Exchanges

STIR options contract volume

2007

2008

Millions

a) STIR options

-6,3%

-96,1%

-71,8%

-65,8%

-62,9%

-62,3%

-27,0%

-8,2%

37,8%

49,5%

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

ALL EXCHANGES

Singapore Exchange

CBOE

Tokyo Financial Exchange

Australian SE

Montral Exchange

CME Group



BM&FBOVESPA

2008/2007 % Change in ST IR options volume

234

229

0,263

0,241

166

313

0,703

0,655

0 100 200 300

NYSE Liffe (Europeanmarkets)

CME Group

Montral Exchange

Australian SE

STIR options notional value

2007

2008

USD trillions

NB: Notional values are not available for CBOT, OMX, Singapore Exchange and Tokyo Financial Exchange for 2006.


33/83


-

50

100

150

200

250

300

350


Millions

STIR options contract volume by geographical zone

2007 2008

b) STIR futures

-18%

-72%

-71%

-43%

-35%

-25%

-23%

-18%

-12%

-11%

-4%

-3%

12%

-80% -60% -40% -20% 0% 20% 40%

ALL EXCHANGES

MexDer

Singapore Exchange

Tokyo Financial Exchange

Montral Exchange

BM&FBOVESPA


Bursa Malaysia

Australian SE

Eurex

CME Group



TAIFEX

2008/2007 % Change in ST IR futures volume


34/83


0 100 200 300 400 500 600

CME Group

NYSE Liffe (European markets)

BM&FBOVESPA

MexDer

Australian SE

Tok yo Financial Exchange


Other exchanges

STIR futures contract volume

2007

2008

Millions

598,9

437,9

24,1

9,3

7,9

1,0

0,5

625,7

435,5

28,4

14,3

10,0

1,0

2,0

0 200 400 600

CME Group


Australi an SE

Montral Exchange

BM&FBOVESPA

Eurex

MexDer

STIR futures notional value

2007

2008

USD trillions

NB: Notional values are not available for NASDAQ OMX Nordic Exchanges, Singapore Exchange and Tokyo Financial

Exchange.

-

200

400

600

800

1 000

1 200


Millions

STIR futures contract volume by geographical zone

2007

2008


35/83


LTIR options and futures

As for short term interest rate derivatives, the trading of long term interest rate derivatives declined in

2008. Both options and futures volumes diminished, often dramatically, in the three regions.

Europe and Americas had resisted until Lehman Brothers collapse. But the growth stopped suddenly

in September 2008. It became negative in October in Americas and in December in Europe.

-80%

-60%

-40%

-20%

0%

20%

40%

60%

80%


Annual growth rate of long term interest rate options volume

Americas

Europe/Africa/Mid. East

As far as bond futures are concerned, the picture is even worse. All regions were already on a

negative trend before the crisis, in Europe less than in other regions, but then volumes collapsedeverywhere, including in Europe as a consequence of the inter-bank liquidity crisis.


36/83


-90%

-80%

-70%

-60%

-50%

-40%

-30%

-20%

-10%

0%

10%


Annual growth rate of long term interest rate futures volume

Americas

Asia - Pacific

Europe/Afr./ME

Despite the decline in their activity, Eurex and CME Group still hold an overwhelming market share for

long term interest rate (LTIR) derivatives trading globally, amounting to 98% for options and 91% for

futures. The Euro-Bund futures on Eurex and the 10 year treasury note futures on CME keep their

leading position globally with an equivalent number of 257 million contracts being traded in each of

those contracts. In terms of notional value, options trading is even more concentrated, with CME

Group alone representing 81% of the global total.

Options traded declined 12% on Eurex and 12% on the CBOT list of CME Group, while futures

declined 15% and 13% respectively.

In the Americas, LTIR options are also traded on the Montral Exchange, the Buenos Aires Stock

Exchange and CBOE. As in 2007, volumes increased in 2008 in Montral Exchange. They decreasedon CBOE. As far as LTIR futures are concerned, volumes traded on other exchanges in the Americas

decreased in Montral and on BM&FBOVESPA and increased sharply on MexDer.

The number of Mexder LTIR contracts traded more than doubled and the notional value of the

contracts tripled. This trend can be explained by the confirmed success of the 10-year bond (M10)

futures and by the introduction at end of 2007 of a new 10-year interest rate swap future which is a

substitute for the 120 maturities that institutional investors and market makers in the 28-days TIIE

futures had to roll (a transaction called Engrapado or Bundle). The launch of the swap futures

allowed for a reduction in the time-consuming use by the back office of market participants of the dailysettlement price on each maturity.


37/83


In the Europe-Africa-Middle East region, and apart from Eurex, a surge in the number of long term

interest rate futures was observed in Johannesburg in 2008 but the notional value was still very low.

Long term interest rate futures are also traded on NASDAQ OMX Nordic Exchanges with increasing

volumes and NYSE Liffe with a slowdown in 2008.

In the Asia-Pacific region, only two exchanges list LTIR options, namely the Tokyo Stock Exchange

and the Australian Securities Exchange: both of them saw volumes decrease in 2008. As for futures,

volumes traded declined sharply on the Australian exchange, but they rose on the Korea exchange,

which is now the second most active exchange on this category of products in Asia, behind ASX.

Volumes declined in Singapore and on the Tokyo Stock Exchange.


38/83


98

69

2,4

1,3

105

79

2,8

2,1

0 20 40 60 80 100 120

CME Group

Eurex


Australian SE

LTIR options contract volume

2007

2008

Millions

a) LTIR options

-9%

-65%

-39%

-13%

-12%

-7%

71%

-70% -50% -30% -10% 10% 30% 50% 70% 90%

ALL EXCHANGES

CBOE

Australian SE


Eurex

CME Group

Montral Exchange

Joh annesburg SE

2008/2007 % Change in LTIR options volume

46,7

11,1

0,1

49,9

11,9

0,2

0 10 20 30 40

CME Group

Eurex

Australian SE

LTIR options notional value

2007

2008

USD trill ions

NB: Notional values are not available for Buenos Aires Stock Exchange and Tokyo Stock Exchange.


39/83


0

20

40

60

80

100

120


Millions

LTIR options contract volume by geographical zone20072008

b) LTIR Futures

-14%

-100%

-100%

-96%

-43%

-25%

-21%

-21%

-15%

-13%

-11%

-10%

5%

8%

8%

17%

159%

212%

2240%

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

ALL EXCHANGES


Warsaw SE

Bursa Malaysia

Singapore Exchange

Australian SE


Montral Exchange

Eurex

CME Gro up

BM&FBOVESPA



MEFF


Korea Exchange

MexDer

TAIFEX

Joh annesburg SE

2008/2007 % Change in LTIR futures volume


40/83


615,3

588,7

39,0

25,8

15,9

10,6

8,3

7,4

5,9

4,7

709,7

692,3

52,1

28,8

13,6

13,5

7,7

9,3

0,3

3,0

0 200 400 600

CME Group

Eurex

Australian SE


Korea Exchange


NASDAQ OMX Nordi cExchanges

Montral Exchange

Johannesburg SE

Other exchanges

LTIR futures contract volume

2007

2008

Millions

165

95

10,4

4,80

3,24

1,53

0,69

159

103

12

6

4

2

1

0 50 100 150 200

CME Group

Eurex

Tok yo Stock ExchangeGroup


Australi an SE

Korea Exchange

Montral Exchange

LTIR futures notional value

2007

2008

USD trillions

NB: Notional values are not available for Bursa Malaysia, Singapore Exchange, and NASDAQ OMX Nordic Exchanges.

0

100

200

300

400

500

600

700

800


Millions

LTIR futures contract volume by geographical zone

2007 2008


41/83


C Currency products

Currency derivatives remain a relatively small segment of organised derivatives markets. Their growth

slowed down in 2008 as compared to previous years but it was still rapid on the option segment

(+17%) and more moderate on futures (+4%).

0,00

0,01

0,02

0,03

0,04

0,05

0,06

0,0

0,1

0,2

0,3

0,4

0,5

0,6

2002 2003 2004 2005 2006 2007 2008

Options

Futures

Currencyfutures

Currencyoptions

Currency products volume growth (billion contracts)

a) Currency options

The growth of the currency options volumes slowed down from 79% in 2007 to 17% in 2008. However,

these figures are heavily influenced by BM&FBOVESPA, the leading exchange in the world for this

category of products in terms of contract volume (the main product being U.S. Dollar options on

futures traded on BM&F markets). BM&FBOVESPA volumes rose 24% in 2008 but they had doubled

in 2007.

A surge in options trading has been observed on all exchanges in the United States: ISE, ICE Futures

and CME Group. Although the CME Group is still predominant in the US, ISE has been very

successful for its second year in trading currency options, with a growth rate of 141%.

In the Europe-Africa-Middle East region the most active exchange is the Tel Aviv Stock Exchange,

with 5,6 million contracts traded in 2008, an increase of 1,3 million over 2007. NYSE Liffe (European

markets) and Budapest Stock Exchange experienced declining activity in 2008.

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


42/83


11,0

5,6

1,7

0,4

0,4

24,7

9,7

4,3

0,7

0,5

0,6

0 5 10 15 20 25 30

BM&FBOVESPA

Tel Aviv SE

CME Group

International SecuritiesExch ange (ISE)

NYSE Liffe (Europeanmarkets)

Budapest SE

Currency options contract volume

2007

2008

Millions

30.6

17%

-32%

-30%

-28%

-9%

13%

24%

29%

44%

141%

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

ALL EXCHANGES

Montral Exchange

MexDer

Budapest SE


Tel Aviv SE

BM&FBOVESPA

CME Group

ICE Futures U.S.

Intern ational Securities Exchange (ISE)

2008/2007 % Change in currency options volume

119,5

6,3

0,6

0,2

596,1

92,7

6,6

0,7

0,3

0 100 200 300 400 500 600

CME Group

Tel Aviv SE

NYSE Liffe(Europeanmarkets)

Budapest SE

MontralExchange

Currency options notional value

2007

2008

USD billio ns

850.9

NB: Notional values are not available for BM&FBOVESPA, ICE Futures U.S. and International Securities Exchange (ISE).


43/83


0

5

10

15

20

25

30

35

40

Americas Europe, Africa, Middle East

Millions

Currency options volume by geographical zone

2007 2008

b) Currency futures

Currency futures trading increased in 2008 for a majority of exchanges. The CME Group continues to

retain its dominant position on a global scale, even more in terms of notional value than of contract

volumes. In South America, both markets present in this segment MexDer and BM&FBOVESPA -

were stable as compared to 2007. BM&FBOVESPA has retained its second position worldwide.

In Asia, the Tokyo Stock Exchange performed very well, with 43 million contracts traded. A newcomer,

the National Stock Exchange of India was able to record as much as 11 million contracts for its first

year of trading in this segment of the market. But the Korea Exchange is still much bigger in terms of

notional value traded. The Australian Securities Exchange is progressing rapidly.

Currency futures are less actively traded on organised exchanges in the Europe, Africa, and Middle

East region than in the other two. However volumes surged on some exchanges: in Warsaw, they

increased from 6 000 contracts in 2007 to 133 000 in 2008, despite a fall in liquidity at the end of the

year and market makers spreads three times wider at the end of the year than in September 2008.

The Turkish Derivatives Exchange increased its activity 80%, but the Budapest Stock Exchange

decreased 32%.


44/83


4%

-32%

-1%

0%

9%

9%

10%

10%

29%

80%

277%

2073%

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

ALL EXCHANGES

Budapes t SE

BM&FBOVESPA

MexDer


CME Gro up

Korea Exchange

ICE Futures U.S. (formerly NYBOT)

Tokyo Fi nancial Exchange (2)


Australian SE (1)

Warsaw SE

2008/2007 % Currency futures volume

(1) Including currency CFDs (2) Exchange Forex Margin contracts (Click 365)


45/83


0 50 100 150

CME Gro up

BM&FBOVESPA

Tok yo Financial Exchange (2)



Budapest SE

Korea Exch ange

Currency futures contract volume

2007

2008

Millions

4 322

347

33

15

13

12

17 358

4 289

313

32

8

0

18

0 5 000 10 000 15 000 20 000

CME Group

BM&FBOVESPA

Korea Exchange

MexDer



Budapest SE

Currency futures notional value

2007

2008

USD billio ns

20 537

NB: Notional values are not available for ICE Futures U.S. (formerly NYBOT), Rofex and Philadelphia Stock Exchange.

0

50

100

150

200

250

300


Millions

Currency futures volume contract by geographical zone

2007 2008


46/83


D - Commodity derivatives

Commodity derivatives is the only segment of the market which continued its very rapid growth,

especially in the futures market (+ 38% in 2008 against 19% in 2007). In this class of underlyings,

futures are much more actively traded (1,5 billion contracts traded in 2008) than options (154 million

contracts).

0,00

0,01

0,02

0,03

0,04

0,05

0,06

0,0

0,1

0,2

0,3

0,4

0,5

0,6

2002 2003 2004 2005 2006 2007 2008

Options

Futures

Currency futures

Currency options

Currency products volume growth (billion contracts)

a) Commodity options

Commodity options are predominantly traded in the Americas, with the CME Group leading the global

scene for trading those products, followed by ICE Futures US, which is growing rapidly (+33%). In

South America, agricultural options are traded on BM&FBOVESPA and Mercado a Trmino de

Buenos Aires.

In Europe, the most active exchanges are the London Metal Exchange, with a stable activity in 2008

and NYSE Liffe followed by Johannesburg Stock Exchange and ICE Futures Europe.

In Asia-Pacific, there is only one exchange where commodity options are traded namely the Australian

Stock Exchange, whose activity more than doubled in 2008.


47/83


16%

-100%

-42%

-33%

-3%

2%

8%

13%

16%

33%

74%

108%

139%

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

ALL EXCHANGES

Tok yo Grain Exchange

Mercado a Trmino de Buenos Aires

Budapest SE

ICE Futures Canada

Lon don Metal Exchange

Johannesburg SE


CME Group

ICE Futures U.S.

BM&FBOVESPA

ICE Futures Europ e

Australian SE

2008/2007 % Changes in commodity options volume


48/83


124,4

17,2

7,4

1,5

1,4

0,7

0,6

0,5

106,9

13,0

7,2

1,3

2,4

0,7

0,3

0,3

- 40 80 120 160

CME Gro up

ICE Futures U.S.


NYSE Liffe (Euro pean markets)

Mercado a Trmino de BuenosAires

Johannesburg SE

ICE Futures Europ e

BM&FBOVESPA

Millions

Commodity options contract volume

2007

2008

3,7

1,1

1,0

1,6

0,5

0,8

0 1 2 3 4

Australian SE


Johannesburg SE

USD billio n

Commodity options notional value

2007

2008

NB: Notional values are not available for ROFEX, BM&FBOVESPA, CME Group, ICE Futures U.S., ICE Futures Canada,

Mercado a Trmino de Buenos Aires, ICE Futures Europe and London Metal Exchange

122,56

0,009,44

143,51

0,0110,17

0

20

40

60

80

100

120

140

160


Millions

2007 2008

Commodity options contract volume by geographical zone


49/83


b) Commodity futures

CME Group is still the most active market in the world for trading of commodity futures following the

acquisition of NYMEX and CBOT, but the growth of the market was driven by three major Chinese

exchanges: Dalian Commodity Exchange, Zhengzhou Commodity Exchange and Shanghai Futures

Exchange. For the first time, the Asia-Pacific region was the most active of the three regions for

trading commodity futures. Chinese markets are mainly focused on agricultural derivatives. But other

Asian exchanges have also emerged as major markets for metal derivatives. For example, the gold

futures contract traded on TAIFEX since December 2007 surged to more than 5 million in 2008,

representing a notional value worth nearly 60 billion dollars.

In Europe, ICE Futures Europe and the London Metal Exchange continued to grow rapidly whilst the

activity on NYSE Liffe remained stable.

38%

-100%

-57%

-50%

-22%

-8%

-4%

3%

8%

10%10%

16%

18%

19%

23%

50%

64%

69%

139%

157%

4292%10844%

24813%

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

ALL EXCHANGES

Sing apore Exchange

Tokyo Grain Exchange

Central Japan Commodity Exchanges

RMX

Mercado a Trmino de Buenos Aires

ICE Futures Canada


Bursa Malaysia

ICE Futures Europ eJohannesburg SE

ICE Futures U.S.

Budapest SE

CME Gro up


BM&FBOVESPA

Shanghai Futures Exchange

Dalian Commodity Exchange

Zhengzhou Commodity Exchange

Australian SE

Korea ExchangeTAIFEX


2008/2007 % Change in commodity futures volume


50/83


0 100 200 300 400 500 600

CME Group

Dalian Commodity Exchange

Zhen gzhou Commodity

ICE Futures Europ e

Shang hai Futures Exchange

London Metal Exchange

ICE Futures U.S.

Mercado a Trmino de Buenos


Tokyo Grain Exchange

TAIFEX

ICE Futures Canada

Central Japan Commodity

BM&FBOVESPA

Bursa Malaysia

Joh annesburg SE

Australian SE

Millions

Commodity futures contract volume

2007

2008

214,3

59,6

43,9

42,6

8,3

0,4

0,3

0,1

0,1

166,2

3,9

23,8

39,5

12,6

0,3

0,0

0,0

0,0

0 50 100 150 200 250

NYSE Liffe (European markets)

TAIFEX

BM&FBOVESPA

Joh annesburg SE

Australian SE

Budapest SE

Hong Kong Exchanges

Korea Exchange

Turkis h Derivatives Exchange

USD billio n

Commodity futures notional value

2007 2008

NB: Notional values are not available for Bursa Malaysia, Central Japan Commodity Exchange, CME Group, Dalian Commodity

Exchange, ICE Futures Canada, ICE Futures Europe, ICE Futures U.S., London Metal Exchange, Mercado a Trmino de

Buenos Aires, RMX, ROFEX, Shanghai Futures Exchange, Singapore Exchange, Tokyo Grain Exchange and Zhengzhou

Commodity Exchange.

0

100

200

300

400

500

600

700


Millions

Commodity futures contract volume by geographical zone

2007 2008


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Energy derivatives

As in previous years, most energy derivatives trading is concentrated on two exchanges, ICE Futures

and CME Group, following its acquisition of NYMEX.

Most active contracts are oil futures, traded on the two leading markets.

Energy derivatives are an example of successful registration and clearing of OTC trades by organised

markets and clearing houses. In 2008, 85 million derivatives registered on NYMEX were cleared via

Clearport (against 66 million in 2007).

The most actively traded energy options in the world

Name of the contract ExchangeMillions of contracts

2008 2007

Light sweet crude oil options on futures CME Group (Nymex) 35.2 28.4

European style natural gas options CME Group (Nymex*) 31.2 29.9

European style crude oil options CME Group (Nymex*) 3.6 1.9

Natural gas options on futures CME Group (Nymex) 2.3 5.1Crude oil average price options CME Group (Nymex*) 2.2 1.4

Source: The Futures Industry Association - * Cleared via Clearport

The most actively traded energy futures in the world


2008 2007

Light sweet crude oil futures CME Group (Nymex) 134.7 121.5

Brent crude oil futures ICE Futures Europe 68.4 59.7

WTI crude oil futures ICE Futures Europe 51.1 51.4

Natural gas futures CME Group (Nymex) 38.7 29.8

Henry hub natural gas swap futures CME Group (Nymex*) 31.4 16.2

Fuel oil futures SHFE 30.8 12.0

Gas oil futures ICE Futures Europe 28.8 24.5

NY harbor RBOB gasoline futures CME Group (Nymex) 20.5 19.8

Crude oil futures MCX 20.5 13.9

No. 2 heating oil futures CME Group (Nymex) 19.6 18.1

Henry hub penultimate swap futures CME Group (Nymex*) 12.4 10.1

Source: The Futures Industry Association - * Cleared via Clearport


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Metal derivatives

The metal derivatives market was very dynamic in 2008. Gold derivatives were especially actively

traded on the electronic platform Globex of CME Group (NYMEX) and in Asia (in Shangha and in

Tawan as already mentioned)

Among exchanges that gained a higher ranking in the list of most actively traded contracts, the

Shanghai Futures Exchanges gold and copper contracts rose to fourth and fifth positions respectively.

The most actively traded metal futures in the world


2008 2007

High grade primary aluminium futures LME 48.3 40.2

Gold futures CME Group (Nymex) 38.4 25.1

Copper futures LME 26.5 21.4

Gold futures SHFE* 22.2 NA

Copper futures SHFE 20.8 16.3

Special l high grade zinc futures LME 16.1 12.6

Gold futures Tocom 15.2 18.2

Source: The Futures Industry Association - * Began trading gold futures in January 2008.

Agricultural derivatives

Agricultural derivatives are the most actively traded commodity derivatives and it was also the most

dynamic market in 2008 with a growth rate of 38.7%, which was slightly higher than the growth rate of

metal derivatives.

Two products, namely white sugar futures traded on ZCE and soybean futures traded on DCE,

experienced an impressive surge of their volumes in 2008 thereby placing them respectively first and

second for the most actively traded agricultural derivatives.

As already mentioned in previous IOMA derivatives surveys, agricultural derivatives markets remain

less developed in Europe than in the Americas and Asia as the Common Agricultural Policy protects

producers against price falls.


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The most actively traded agricultural options in the world


2008 2007

Corn options on futures CME Group (Prev CBOT) 21.0 14.7

Soybeans options on futures CME Group (Prev CBOT) 9.8 8.2

Sugar #11 ICE Futures U.S. 9.2 5.5

Source: The Futures Industry Association

The most actively traded agricultural futures in the world


2008 2007

White sugar futures ZCE 165.5 45.5

No. 1 Soybean futures DCE 113.7 47.4

Soy meal futures DCE 81.3 64.7

Corn futures CME Group (Prev CBOT) 60.0 54.5

Corn futures DCE 55.0 59.4

Rubber futures SHFE 46.5 42.2Soy oil futures DCE 43.7 13.3

Soybean futures CME Group (Prev CBOT) 36.4 31.7

Source: The Futures Industry Association


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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 2007. Equity and

index options are usually traded more by private investors than futures. However, several exchanges

(MEFF, Singapore Exchange and Osaka Stock Exchange) succeeded in attracting significant interest

from retail investors in futures contracts.

Exchange Share of retail trading (2008) Share of retail trading (2007) BMF 8% 7%BOVESPA 63% (options) 60% (options)Montral Exchange Equity and ETF options: significant

futures: insignificantOptions: 98%Futures: 0%

CBOE 25% to 35% 25% to 35%ISE Approximatly 50%NYSE Arca 30%Hong Kong Exchange 17% 18%Osaka Stock Exchange Equity options put: 17%;

Equity options call: 13%Index futures: 18%Index options: 17-18%

Singapore Exchange negligibleTAIFEX 39%Thailand Futures Exchange 57% 55%Tokyo Stock Exchange Very small Very smallEurex Less than 5%MEFF Mini-futures: 70 to 80%

Other products: 5 to 15%Mini-futures: 75%Other products: 5 to 15%

Warsaw Stock Exchange Futures: 54%Options: 59% Futures: 56%Options: 53%


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OTC trades registered by exchanges Several exchanges include a registration facility for OTC trades.

Eurex processed 857 million contracts on its wholesale trading facilities in 2008 (+44% over 2007).

Index options are the main segment of this market, stock futures recorded the strongest increase in

2008 (2.5 times more than in 2007).

In 2008, the OTC service of Bclear of NYSE Liffe processed 190 million contracts an annual increase

by 55% over 2007. Stock futures registered on Bclear grew the fastest and accounted for 120.9 millioncontracts, representing 97% of the overall trading volumes in stock futures on Liffe. In December 2008

Liffe broadened the range of products eligible to Bclear by adding CDSs on European indexes.

In Europe, MEFF also recorded a very rapid growth of its OTC processing services, especially on

individual stock futures (+163%) and options (+43%).

In Asia, OTC trades processed by Hong Kong Exchanges and Clearing increased on stock options

and stock index futures but they decreased on index options.

In the Americas, BM&F markets processed more than 2 million OTC swaps as in 2007.

Stock options: OTC trades processed by exchanges

Stock ExchangeMillion contracts traded

OTC contracts processed by exchanges as apercentage of total contracts traded

(OTC+ on-exchange)

2008 2007 Growth rate ContractstradedNotional value ofcontracts traded

Number oftrades

Eurex 152.0 133.5 14% 43.5% 42.0% na

Hong Kong Exchanges 6.7 6.0 11% 10.9% na na

Liffe (Bclear) 41.4 28.3 46% 22.5% 39.2% 0.4%

MEFF 13.2 9.2 43% 42.0% 41.4% 6.7%

Montral 0.2 1.3% na 0.01%


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Stock futures: OTC trades processed by exchanges



(OTC+ on-exchange)


Number oftrades

Eurex 130.0 51.8 151% 99.8% 100.0%

Hong Kong Exchanges 0.1 -

Liffe (Bclear) 120.9 72.4 67% 97.1% 94.8% 62.5%

MEFF 39.4 15.0 162% 46.0% 46.0% 0.3%

Stock index options: OTC trades processed by exchanges



(OTC+ on-exchange)


Number oftrades

BM&FBOVESPA 0.9 0.3 178% 40.1% 22.1%

Eurex 394.6 234.2 68% 76.6% 76.5%

Hong Kong Exchanges 1.5 3.6 -58% 21.6% 0.5%

Liffe (Bclear) 23.3 17.3 35% 34.8% 47.2% 0.3%

MEFF 5.7 3.4 65% 40.7% 40.4% 2.5%

Stock index futures: OTC trades processed by exchanges



(OTC+ on-exchange) 2008 2007 Growth rate Contractstraded

Notional value ofcontracts traded

Number oftrades

Eurex 73.1 53.9 36% 14.3% 11.5%

Hong Kong Exchanges 1.7 1.6 8% 3.6% na 0.0%

Liffe (Bclear) 5.3 4.9 9% 5.0% 7.1% 0.02%

MEFF 1.3 1.5 -15% 11.1% 62.7% 0.2%


57/83


Prospects for clearing organizations For the second year running data was gathered from clearing organizations.

In the Americas, the Options Clearing Corporation (OCC) is the world's largest equity derivatives

clearing organization. OCC's participant exchanges include: the Boston Options Exchange, Chicago

Board Options Exchange, International Securities Exchange, NASDAQ OMX PHLX, NYSE Amex and

NYSE Arca.

In Europe-Africa-Middle East region, the two largest clearing corporations are Eurex and LCHClearnet. Eurex clearing house is clearing Eurex on-exchange trades but also an important part of

OTC trades. LCH Clearnet is mostly responsible for clearing Liffe s trades on-exchange and OTC

trades via Bclear. The other stock exchanges have their own clearing house that clears 100% of the

trades on-exchange.

In the Asia-Pacific region, all the stock exchanges have their own clearing house that clears 100% of

the trades on-exchange.

The Lehman Brothers bankruptcy and the financial crisis generated an increased interest of market

participants and regulators for centralized clearing of OTC trades, so as to increase market

transparency and capital efficiency thanks to position netting and to reduce counterparty and systemic

risks. A major area for this development is the CDS market, which is still dependent upon email and

voice channels and suffers from very frequent errors (13% of CDS trades according to ISDA).

Following pressure from the European Commission, nine international banks committed to clear 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

London. NYSE Liffe CDS contracts are based on Markit iTraxx Europe indexes. LCH.Clearnet in Paris

also announced plans to launch clearing of Euro area CDS and Eurex announced initiative to include

CDS in their clearing offer. In March 2009, ISDA announced a standardisation of CDS contracts that

should facilitate the clearing process.

In March 2009, ICE Trust, a subsidiary of IntercontinentalExchange (ICE), began to clear CDSs,

starting with the North American Markit CDX indexes, single-name CDSs being expected in the

following months. ICE Trust 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, ICETrust cleared 600 index CDS trades for a notional amount of 70 billion dollars.


58/83


ICE also intends to develop a specialized CDS clearing house for European-based products, such as

Markit iTraxx indexes. CME (through its recently acquired ClearPort platform) together with the Citadel

hedge fund got authorization from the SEC to create a clearing house for CDSs, called CMDX.

0

200

400

600

800

1000

1200

1400

1600

2007 2008

Equity options clearing in Europe, Africa, Middle East(millions contracts single counted)

Others (100 % cleared home)

LCH Cle arnet (others)

LCH Cle arnet (Liffe OTC BClear)

LCH Cl earnet (Liffe on -exchange)

Eurex (OTC)

Eurex (on-exchange)

0

200

400

600

800

1000

1200

1400

1600

1800

2007 2008

Equity futures clearing in Europe, Africa, Middle East(millions contracts single counted)

Others (100 % cleared home)

LCH Cle arnet (others)

LCH Cle arnet (Liffe OTC BClear)

LCH Cl earnet (Liffe on -exchange)

Eurex (OTC)

Eurex (on-exchange)

0

1000

2000

3000

4000

5000

6000

2007 2008

Equity derivatives clearing in Americas

(millions contracts single counted)

Others (100% cleared home)

The Options Clearing Corporation


59/83


Conclusion After several years of rapid growth, the pace of development of all derivative markets segments,

except commodity futures, slowed down in 2008. It turned negative on interest rate products.

2008 Single Stock Stock Index STIR LTIR CurrencyCommo-

dities

Millions of contractstraded

Options 4 368 4 077 439 171 50 154

Futures 1 059 2 286 1 243 1 322 332 1 545

Growth rate of contracts traded

Options 17% 9% -6% -9% 17% 16%

Futures 66% 34% -18% -14% 4% 38%

2007 Single Stock Stock Index STIR LTIR CurrencyCommo-

dities

Millions of contractstraded

Options 3 729 3 745 469 188 43 132

Futures 638 1 706 1 522 1 530 320 1 121

Growth rate of contracts traded

Options 35% 18% 21% 6% 79% 22%

Futures 122% 46% 13% 20% 52% 19%

Although a sharp downturn has been observed since Lehman Brothers collapse, equity products are

resisting, and their share in total derivatives trading increased from 65% to 69%.

For the first time trading in equity options has exceeded trading in equity index options. However,

the financial crisis was still producing its negative effects at the beginning of 2009 and growth

seems to be at least provisionally frozen on a majority of exchanges.

Index options and futures were also hit by the financial crisis. However, a

Documents

2008 IOMA Derivatives Market Survey - for WC