WFE/IOMA 2014 Derivatives Market Survey

Transcription

1 WFE/IOMA 2014 Derivatives Market Survey Grégoire Naacke, Eleanor Penistone and Tatiana Chekanova August 2015

2 WFE IOMA 2014 Derivatives Market Survey Table of Contents Introduction... 1 The global derivatives market Equity derivatives Equity derivatives trading Single Stock Options Single Stock Futures Stock Index Options Stock Index Futures ETF Options Interest rate derivatives Interest rate derivatives trading Short Term Interest Rate (STIR) Options and Futures Long Term Interest Rate (LTIR) Options and Futures Interest rate derivatives clearing Currency derivatives Commodity derivatives Other derivatives Annex Trading Statistics Every effort has been made to ensure that the information in this survey is accurate at the time of printing, but the WFE Office cannot accept responsibility for errors or omissions.

3 INTRODUCTION This report is the result of the annual survey conducted by the World Federation of Exchanges on worldwide derivative markets. The survey was compiled from questionnaire responses supplied by exchanges and clearinghouses as well as data collected from exchange websites. The author wishes to thank those exchanges that responded to the questionnaire and especially exchange staff who gave additional assistance in response to enquiries. The report focuses on trading and clearing of derivatives products and covers 54 trading venues and 52 clearinghouses. Some exchanges taking part in this survey trade in a wide range of derivatives contracts, while others specialize in a single area of the market. The trading figures gathered here comprise a full set of indicators (number of traded contracts, notional value of traded contracts, open interest, notional outstanding amounts, number of trades and paid premium) and are broken down into sixteen main product lines: Single Stock Options and Futures Stock Index Options and Futures Exchange Traded Funds Options and Futures Short-Term Interest Rate (STIR) Options and Futures Long-Term Interest Rate (LTIR) Options and Futures Currency Options and Futures Commodity Options and Futures Other Derivatives Options and Futures The mean number of different product lines across exchanges is 6.2 and the median is 6. The Johannesburg Stock Exchange (JSE), with 13 product lines, is the exchange that offers the largest number of product lines while 6 exchanges offer only one class of product, the majority of these being Asia Pacific commodity futures exchanges. WFE/IOMA Derivatives Market Survey

4 Number of product lines per exchange WFE/IOMA Derivatives Market Survey

5 Number of trading venues by product line WFE/IOMA Derivatives Market Survey

6 THE GLOBAL DERIVATIVES MARKET 21.7 billion Exchange Traded Derivatives (ETD) contracts (9.7 billion options and 12.0 billion futures) were traded in 2014, little changed from the 21.6 billion traded in This follows the sharp decrease of 15% in 2012 from the ETD peak of 24.5 billion contracts traded in While there was a large decrease in the number of currency derivative contracts traded (-16%) in 2014, this was offset by an increase of 3.7% in equity derivatives, and an increase of 4.8% in commodity derivatives in the same period. Commodity futures overtook single stock options as the most traded contract type in Total volumes of exchange traded derivative contracts over time Looking at the regional breakdown, no major discrepancies were observed. Volumes in the Americas and EMEA increased by 2% and 1.7% respectively, whilst Asia Pacific experienced a 2.1% decrease. The regional distribution of volumes remained unchanged on 2013, with Americas representing 45% of total volumes, Asia Pacific 33% and EMEA 22%. Futures contracts traded rose 0.3%, whilst options recovered slightly with a 1.7% increase. WFE/IOMA Derivatives Market Survey

7 Number of ETD traded worldwide (billions of contracts) Breakdown by region in 2014 Breakdown by products in 2014 WFE/IOMA Derivatives Market Survey

8 Product composition over time Regional activity over time Futures vs Options over time WFE/IOMA Derivatives Market Survey

9 Number of ETD traded worldwide (millions of contracts) /2013 Single Stock Options % Single Stock Futures % Stock Index Options % Stock Index Futures % ETF Options % ETF Futures % Total Equity % STIR Options % STIR Futures % LTIR Options % LTIR Futures % Total Interest Rate % Currency Options % Currency Futures % Total Currency % Commodity Options % Commodity Futures % Other Commodity Derivatives % Total Commodity % Other Options % Other Futures % Other Derivatives % Total "Other" % Grand Total % WFE/IOMA Derivatives Market Survey

10 Equity derivatives: Equity Derivatives volumes rose 3.7% in 2014 mainly due to an increase in Stock Index Options (+13.5%), driven by a sharp increase in India. Interest rate derivatives: Interest Rate derivative volumes decreased slightly (-2%) in 2014, after seeing a sharp increase in 2013 (+13.5%). Contrasting trends were observed between the regions. The Americas saw an increase of 9% while Asia Pacific and EMEA decreased by 9.5% and 20% respectively. Currency derivatives: Currency derivatives experienced the sharpest decrease in 2014 (-16%). Commodity derivatives: Commodity derivatives saw a 4.8% rise in volumes in Commodity futures overtook single stock options as the most traded contract in Other derivatives: The other derivatives category comprises a wide range of products, including Volatility Index options, Exotic options and futures, REIT derivatives, Dividend and Dividend Index derivatives or CFDs. Volumes in this category decreased significantly (-5.4 %) in WFE/IOMA Derivatives Market Survey

11 1 EQUITY DERIVATIVES 1.1 Equity derivatives trading The number of equity derivative contracts grew 3.7% in 2014, reversing the 7.6% decline seen last year. Equity derivatives remain dominant in terms of number of derivative contracts traded on exchange and represent 54% of total derivative contracts traded. Number of equity ETD traded worldwide (billions of contracts) WFE/IOMA Derivatives Market Survey

12 Number of equity ETD traded worldwide (billions of contracts) by underlying As can be seen from the graph above, stock index options rose the most at 13.5%. Number of equity ETD traded worldwide (billions of contracts) by region In 2014, Asia Pacific had a strong growth of 10.5%, while the Americas and EMEA were largely flat (+0.3% and -0.2% respectively). WFE/IOMA Derivatives Market Survey

13 According to Bank for International Settlements (BIS) statistics, ETD (Exchange Traded Derivatives) and OTCD (OTC Derivatives) segments tend to show similar trends. The total notional amount outstanding of OTCD increased by 21% in 2014 compared with ETD at 7% increase. Notional outstanding amounts of on-exchange and OTC equity derivatives (trillion USD) WFE/IOMA Derivatives Market Survey

14 1.1.1 Single Stock Options By contracts traded, Single Stock Options remain the most traded financial derivative product with 3.84 billion contracts traded in Volumes represent 18% of all derivative contracts traded. Despite the strong increase of trading activity on cash markets, Single Stock Options volume declined again in 2014 (-2.5%) for the third consecutive year. Looking at the different regions, the Americas (which account for over 80% of global volume traded) decreased slightly (-1.9%), whereas Asia Pacific saw slight growth, at 0.5%. EMEA saw the biggest decrease in volumes (-8.7%). In the Americas US exchanges - which account for 59% of total regional volumes decreased by 1%, while Brazil saw a decrease of 11% in volumes in Single Stock Options (number of contracts traded) In Asia Pacific, the largest exchange, the Australian Securities Exchange (ASX), saw a decrease of 12%, but volumes on the National Stock Exchange of India (NSE) and the Hong Kong Exchanges and Clearing Limited (HKEx) continued to grow, 5% and 20% respectively. WFE/IOMA Derivatives Market Survey

15 The EMEA decrease was driven by Eurex (-13.5%), Euronext (-8.4%) and the LSE Group (-12%). ICE Futures Europe and Nasdaq OMX Nordic Exchanges bucked the trend, growing 13% and 6% respectively. Top 10 exchanges by number of single stock options contracts traded in 2014 Exchange Millions of contracts traded Notional Value (bn USD) Open Interest ('000 contracts) Notional Out. Amounts (bn USD) Number of trades ('000) Option Premium (bn USD) 2014 AGR 2014 AGR 2014 AGR 2014 AGR 2014 AGR 2014 AGR 1 BM&FBOVESPA % % % 6-46% % 18-17% 2 NASDAQ OMX (US markets) 692-2% NA NA NA NA NA NA % % 3 NYSE Derivatives 534-9% 108 3% NA NA NA NA NA NA NA NA 4 Chicago Board Options Exchange % % NA 7% 743 6% % % 5 International Securities Exchange (ISE) 338 1% NA NA NA NA NA NA NA NA NA NA 6 Eurex % 854 9% % 146 3% % 37 8% 7 BATS Global Markets % NA NA NA NA NA NA NA NA NA NA 8 Australian Securities Exchange % % % 6 NA % 9-24% 9 Miami International Securities Exchange % NA NA NA NA NA NA NA NA NA NA 10 National Stock Exchange of India 85 5% % % 1 50% % 9 19% Others 401-2% % % 34-32% % 23-23% Total % % % % % % WFE/IOMA Derivatives Market Survey

16 1.1.2 Single Stock Futures Single stock future volumes increased 5% in 2014, although these are still the least traded equity derivative product with volumes below 1 billion contracts traded. The increase was mainly driven by Asia Pacific, where growth was 21% and accounted for 34% of global volumes. EMEA, which has the largest share, with 65% of global volumes in 2014, saw a slight decrease of -2%, driven by Europe, where volumes decreased by -23%. As noted in earlier reports, most of the volume on Eurex and ICE Futures Europe are OTC trades registered on the exchanges. By contrast, Moscow Exchange continued its strong growth (+13%), reaching close to 350 million contracts traded and remaining the dominant exchange in single stock futures trading. Single Stock Futures (number of contracts traded) Top 10 exchanges by number of single stock futures contracts traded in 2014 Exchange Millions of contracts traded Notional Value (bn USD) Open Interest ('000 contracts) Notional Out. Amounts (bn USD) Number of trades ('000) 2014 AGR 2014 AGR 2014 AGR 2014 AGR 2014 AGR 1 Moscow Exchange % 84-21% % NA NA NA NA 2 National Stock Exchange of India % % % 9 67% % 3 Eurex % % % 17 38% 28-23% 4 ICE Futures Europe % % % NA NA NA NA 5 Korea Exchange 96 1% 63 10% % NA -86% % 6 Johannesburg Stock Exchange 50 91% 18 7% % NA NA NA NA 7 Thailand Futures Exchange (TFEX) % NA NA % NA NA % 8 MEFF 13-11% 19 28% % 1-48% 31 5% 9 TAIFEX 9 71% % % NA 10% % 10 Athens Exchange 7 5% 3 14% % 20 18% 461-1% Others 16-22% 19-40% % 1 NA NA -65% Total 993 5% % % 49 11% % WFE/IOMA Derivatives Market Survey

17 1.1.3 Stock Index Options Amongst equity derivative products, Stock Index Options saw the largest increase (+13.5%) in 2014, reaching 3.15 billion contracts. Growth was seen in all regions. The Americas grew the most at 17%, with EMEA growing the least at 4%. Asia Pacific still accounted for over 70% of the contracts traded globally, and grew 15% in The Indian exchanges accounted for 50% of total volumes but the size of the contracts is much smaller than in most other countries. In terms of Notional Value, India only accounts for 5.7% of the worldwide total. In the past, Korea has also been characterized by huge volumes and smaller size contracts. However, from 2012, the size of the contracts was multiplied by five. The size change was implemented progressively and had effects on 2012 and 2013 volumes. Despite this size change, KRX remains the largest exchange in the world in terms of Notional Value of Index options traded, followed closely by CBOE. In the United States, CME is continuing to grow its stock index options business, with total volumes 130 million in 2014 on the back of 42% growth. Stock Index Options (number of contracts traded) WFE/IOMA Derivatives Market Survey

18 Open interest grew 2% in 2014, to 62.7 million contracts open at the end of the year. The notional value and the number of trades also increased significantly by 7% and 5% respectively. Top 10 exchanges by number of stock index options contracts traded in 2014 Exchange Millions of contracts traded Notional Value (bn USD) Open Interest ('000 contracts) Notional Out. Amounts (bn USD) Number of trades ('000) Option Premium (bn USD) 2014 AGR 2014 AGR 2014 AGR 2014 AGR 2014 AGR 2014 AGR 1 National Stock Exchange of India % % % 13 53% % 38-7% 2 BSE Limited % % 7-51% 1 NA % 5-86% 3 Korea Exchange % % % NA NA % % 4 Eurex 340 7% % % 994-9% % 228 2% 5 Chicago Board Options Exchange 247 8% % % % % 414-1% 6 TAIFEX % % 843-7% 12-5% % 10 34% 7 CME Group % % % % % NA NA 8 Tel-Aviv Stock Exchange 48 0% % % 19 9% % 16 4% 9 Japan Exchange Group 44-23% NA NA % NA NA NA NA 67-35% 10 Moscow Exchange 41-3% 92-22% % NA NA NA NA NA NA Others 116-4% % % % % 32-52% Total % % % % % % When looking at the top 30 contracts traded, contrasting trends can be observed. In the United States, the main index options performed very well with volumes traded in the S&P 500 Index traded on the CBOE growing by 8%, and the Russell 2000 Index by 18%. In contrast the Nasdaq 100 Index experienced a 9% drop in contracts traded. E-Mini S&P 500 monthly options traded on the CME dramatically increased by 70%. In India, the three most traded contracts i.e. NIFTY Options, BSE 30 SENSEX and BANKNIFTY Options increased by 11%, 304% and 53% respectively while BSE 100 Index options decreased by 46%. Kospi 200 options traded in Korea decreased by 20%. In the EMEA region, volumes in the most popular contract, the EURO STOXX 50 Index Option traded on Eurex, increased by 7%, but the TA-25 Options, the RTS Index Options and the DAX options contracts experienced a decrease in volumes in WFE/IOMA Derivatives Market Survey

19 Top 30 stock index options in terms of contracts traded in 2014 Products AGR AGR AGR 1 NIFTY Options INR 50 National Stock Exchange of India % % % 2 Kospi 200 KRW Korea Exchange % NA NA % 3 BSE 30 SENSEX 15 BSE Limited % % % 4 EURO STOXX 50 Index Options EUR 10 Eurex 241 7% % % 5 S&P 500 Index USD 100 x the level of the underlying index Chicago Board Options Exchange/C % % % 6 TAIEX Options NTD 50 x Index Point TAIFEX % % 835-7% 7 Bank NIFTY Options INR 25 National Stock Exchange of India 84 53% % % 8 BSE BSE Limited 77-46% % NA NA 9 E-mini S&P 500 options Mini CME Group 74 31% % % 10 TA-25 options 100 Tel-Aviv Stock Exchange 48 0% % 490 8% 11 Nikkei 225 JPY Japan Exchange Group, Inc. (Osaka) 44-23% NA NA % 12 RTS Index options NA Moscow Exchange 41-3% NA NA NA NA 13 DAX options EUR 5 Eurex 40-6% % % 14 KOSPI 200 EUR 1 Eurex 22 10% % NA NA 15 Russell 2000 Index USD 100 x the level of the underlying index Chicago Board Options Exchange/C % % 463 0% 16 EURO STOXX Banks options EUR 50 Eurex 12 41% % 957-7% 17 E-MINI S&P 500 end of month Mini CME Group 12 52% % % 18 E-MINI S&P 500 end of month option Mini CME Group 11 82% % % 19 E-MINI S&P 500 end of month options Mini CME Group 10 76% % % 20 S&P/ASX 200 (XJO) USD 10 per index point Australian Securities Exchange 10 6% 464 6% % 21 OMX Index Options The OMXS30 share index* NASDAQ OMX Nordic Exchanges 9 15% % % 22 E-mini S&P end of month Mini CME Group 9 57% % 18 64% 23 H-shares Index Options NA Hong Kong Exchanges and Clearing 9 12% % % 24 S&P 500 options Standard CME Group 9 24% % % 25 AEX-INDEX NA Euronext* 8-4% 452 5% % 26 SGX Nikkei 225 Index Options One Nikkei 225 Index Futures Contract Singapore Exchange 8-24% NA NA % 27 Hang Seng Index Options NA Hong Kong Exchanges and Clearing 8-13% % 170-2% 28 Mini IBEX Options 1 Mini IBEX Future (EUR 1 x the level of the IBEX 35) MEFF 7 42% % % 29 Nasdaq 100 Index USD 100 x the level of the underlying index Chicago Board Options Exchange/C2 5-9% % % 30 EURO STOXX 50 Index Options - 4th Friday EUR 10 Eurex 5 44% % NA NA Total % % % *NYSE Liffe Europe before 2014 markets Size Exchange Millions of contracts traded Notional Value ('000 USD) Open Interest ('000 contracts) WFE/IOMA Derivatives Market Survey

20 1.1.4 Stock Index Futures Stock index futures volumes increased 2% in 2014, reaching billion contracts traded. Across the different time zones there were slight differences, with the Americas and EMEA growing 4% and 3% respectively, but with Asia Pacific decreasing slightly by 1%. Volumes were roughly evenly split between the three regions, with Asia Pacific and EMEA accounting for slightly more, with 35% of volume each, and Americas accounting for 30%. Among the top five exchanges by number of stock index futures traded in 2014, three exchanges experienced a volume drop (CME -1%, JPX -13% and Moscow -8%) while Eurex and China Financial Futures Exchange each saw a 12% increase. The top five exchanges remained the same as in Stock Index Futures (number of contracts traded) WFE/IOMA Derivatives Market Survey

21 Top 10 exchanges by number of stock index futures contracts traded in 2014 Exchange Millions of contracts traded Notional Value (bn USD) Open Interest ('000 contracts) Notional Out. Amounts (bn USD) Number of trades ('000) 2014 AGR 2014 AGR 2014 AGR 2014 AGR 2014 AGR 1 CME Group 566-1% % % 419 6% % 2 Eurex % % % 182-3% % 3 Japan Exchange Group % % % NA NA NA NA 4 Moscow Exchange 245-8% % 788-9% NA NA NA NA 5 China Financial Futures Exchange % % % % NA NA 6 Singapore Exchange 108 8% NA NA NA NA NA NA NA 7 National Stock Exchange of India 105 3% % % 3 41% % 8 BM&FBOVESPA 95 29% 892 5% % 7 28% % 9 Hong Kong Exchanges and Clearing 49-2% % % 35 12% NA NA 10 Euronext 47 0% % % NA NA % Others 323 5% % % 104-5% % Total % % % 788 6% % CME Group E-Mini S&P 500 Futures remained the most popular stock index future, with 425 million contracts traded in 2014 followed by Eurex EURO STOXX 50 Futures and Moscow Exchange RTS Index Futures. CFFEX CSI 300 futures with 217 million contracts traded and a growth of 12% overtook JPX Nikkei 225 mini (-15%). Singapore Exchange continued to see a large increase (+89%) in volumes for its SGX FTSE China A50 Index Futures, entering the top 10, and reaching 41 million contracts. Top 30 stock index futures in terms of contracts traded in 2014 Products AGR AGR AGR 1 E-mini S&P 500 Futures Mini CME Group 425-6% % % 2 EURO STOXX 50 Index Futures EUR 10 Eurex 294 9% % % 3 RTS Index Futures USD 2 Moscow Exchange 243-9% NA NA NA NA 4 CSI 300 futures RMB 300 x Index China Financial Futures Exchange % % % 5 Nikkei 225 Mini JPY 100 Japan Exchange Group, Inc. (Osaka) % % 622-8% 6 E-MINI NASDAQ 100 Futures Mini CME Group 75 27% % % 7 NIFTY Futures NA National Stock Exchange of India 74-1% 391 4% % 8 Mini Bovespa Index futures 1 underlying index (each index point = BRL 1,00) contract of the Future index BM&FBOVESPA 70 42% % 21 26% 9 BIST-30 Index NA Borsa Istanbul 43 7% 183-9% % 10 SGX FTSE China A50 Index Futures USD 1.00 x SGX FTSE China A50 Index Futures Price Singapore Exchange 41 89% NA NA % 11 Mini Dow Jones Index Mini CME Group 39 10% % 116-3% 12 KOSPI 200 Futures x the level of the KOSPI 200 Korea Exchange 38-24% % 111-4% 13 CAC 40 Index NA Euronext* 37-2% % % 14 Russell NA ICE Futures U.S % % % 15 OMX Index Futures The OMXS30 share index* NASDAQ OMX Nordic Exchanges 32 5% % 454 8% 16 Bank NIFTY Futures NA National Stock Exchange of India 30 16% % 81 38% 17 DAX Futures NA Eurex 30 5% % % 18 SGX Nikkei 225 Index Futures JPY 500 x Nikkei 225 Index Futures Price Singapore Exchange 27-30% NA NA % 19 Nikkei 225 Futures JPY Japan Exchange Group, Inc. (Osaka) 26-16% % 440 5% 20 TAIEX Futures Index Point* NTD 200 TAIFEX 25 9% % 71 7% 21 H-shares Index Futures NA Hong Kong Exchanges and Clearing 22 5% % % 22 TOPIX Index Futures JPY Japan Exchange Group, Inc. (Osaka) 21-8% % 562-5% 23 BOVESPA Index Future 5 underlying index (each index point = BRL 1,00) contract of the Future index BM&FBOVESPA 20 0% 463-7% % 24 EURO STOXX Banks Futures NA Eurex 20 96% % % 25 SGX S&P CNX Nifty Index Futures USD 2.00 x SGX S&P CNX Nifty Index Futures price Singapore Exchange 18 14% NA NA % 26 SGX MSCI Taiw an Index Futures USD 100 x SGX MSCI Taiw an Index Futures price Singapore Exchange 17-6% NA NA % 27 Hang Seng Index Futures NA Hong Kong Exchanges and Clearing 17-13% % 99-8% 28 SET50 Index Futures THB per index point Thailand Futures Exchange (TFEX) % NA NA % 29 Mini-TAIEX Futures NTD 50 x Index Point TAIFEX 13 1% % 30-16% 30 Nikkei yen based futures Standard CME Group 12 3% 887 9% 103-3% Total % % % *NYSE Liffe Europe before 2014 markets Size Exchange Millions of contracts Notional Value ('000 USD) Open Interest ('000 contracts) WFE/IOMA Derivatives Market Survey

22 1.1.5 ETF Options The ETF options market remains dominated by the US, with the six largest exchanges representing 99% of global volumes. This segment of the equity derivatives market increased by 3.8% in 2014, mainly driven by an increase at CBOE (+12%). NASDAQ OMX volumes increased by 2% in 2014, while NYSE and ISE decreased 34% and 4% respectively. ETF Options (number of contracts traded) Top 5 exchanges by number of ETF options contracts traded in 2014 Exchange Millions of contracts traded Notional Value (bn USD) Open Interest ('000 contracts) Notional Out. Amounts (bn USD) Number of trades ('000) Option Premium (bn USD) 2014 AGR 2014 AGR 2014 AGR 2014 AGR 2014 AGR 2014 AGR 1 Chicago Board Options Exchange % % NA 6% NA 10% % 48 17% 2 NASDAQ OMX (US markets) 342 2% NA NA NA NA NA NA % 56 3% 3 NYSE Derivatives % NA NA NA NA NA NA NA NA NA NA 4 International Securities Exchange (ISE) 269-4% NA NA NA NA NA NA NA NA NA NA 5 BATS Global Markets 69 56% NA NA NA NA NA NA NA NA NA NA Others 87 86% % NA 6 NA 59 NA 1 NA Total % NA NA NA 719 NA NA NA NA NA WFE/IOMA Derivatives Market Survey

23 2 INTEREST RATE DERIVATIVES 2.1 Interest rate derivatives trading Interest rate derivative contracts saw total volumes decline 2% to 3.27 billion in 2014, from a peak of 3.33 billion in Only STIR options saw a slight increase in 2014 (+2.4%), with STIR futures and LTIR futures decreasing (-4% and -1% respectively). Contrasting trends were observed between the regions: the Americas increased 9% while Asia Pacific and EMEA decreased 9.5% and 20% respectively. The interest rate derivatives market remains highly concentrated, with the top 4 exchanges - CME Group, Eurex, ICE Futures Europe and BM&FBovespa - representing 93% of the total number of IR contracts traded in 2014.The CME Group remained the leader in the interest rate market, with 19% growth in the number of contracts traded in 2014, accounting for 53% of total volumes, while BM&FBOVESPA saw a decrease of 19% in In the EMEA region, ICE Futures Europe (previously LIFFE) and Eurex decreased 28% and 9% respectively, leading to a total 20% decrease in the region. In the Asia Pacific region, the three main exchanges, namely ASX, KRX and JPX, saw a decrease in activity (-3%, -24% and -8% respectively). WFE/IOMA Derivatives Market Survey

24 The size of long-term interest rate contracts (generally local currency) are much smaller than that of short-term interest contracts (most of the time local currency). That is why - as shown in the following graph short-term interest rate derivatives account for such a large part of the notional value (85%) breakdown by Interest Rate product group of The interest rate derivatives market remains a predominantly OTC market (as measured by notional outstanding amounts), due to the significance of OTC interest swaps which account for almost 70% of the total. WFE/IOMA Derivatives Market Survey

25 According to BIS statistics, the total notional outstanding amount for all OTCD decreased 13.5% in December 2014 compared with December BIS figures also show that IR ETD outstanding amounts remained stable in the same period (0.4%). Evolution of notional outstanding amounts of on-exchange and OTC interest rate derivatives (trillion USD) WFE/IOMA Derivatives Market Survey

26 2.1.1 Short Term Interest Rate (STIR) Options and Futures Short-term interest rate derivatives are defined by the original term to maturity of the underlying being equal to or less than 12 months. STIR volumes declined by 3% in 2014 to total 1.7bn contracts traded. Futures remained the most actively traded STIR contracts, representing almost 80% of the STIR market (1.4bn contracts).. Of these, CME Eurodollar futures remained the most actively traded contract (664 million contracts), seeing a 28% growth in volumes. Short-Term Interest Rate Derivatives (number of contracts traded) Despite the global decrease in volumes traded, total open interest was up 5% in 2014 largely attributable to a 26% increase in open interest at CME Group, ICE Futures Europe saw growth of only 1% while BM&FBOVESPA volumes decreased by 3%. Top 5 exchanges by number of short-term interest rate derivatives contracts traded in 2014 Exchange Millions of contracts traded Notional Value (bn USD) Open Interest ('000 contracts) Notional Out. Amounts (bn USD) Number of trades ('000) 2014 AGR 2014 AGR 2014 AGR 2014 AGR 2014 AGR 1 CME Group % % % % % 2 BM&FBOVESPA % % % % NA 3 ICE Futures Europe % % % % NA NA 4 Australian Securities Exchange 30-15% % % % % 5 Montréal Exchange (TMX Group) 25 8% % % % 831 4% Others 24-40% % % % 14-33% Total % % % % % WFE/IOMA Derivatives Market Survey

27 2.1.2 Long Term Interest Rate (LTIR) Options and Futures LTIR contracts volumes were down slightly (1%) in 2014, totaling 1.5 billion contracts traded. LTIR futures contracts remained the main contract type traded (87% of the total), with LTIR options decreasing 3% in 2014, to 204 million contracts traded. LTIR Futures volumes decreased 0.6% in 2014, CME Group continued to grow (7%) while Eurex, the second biggest market, saw a 10% decrease in volumes in Ten-Year Treasury Note futures remain the most actively LTIR derivative traded on CME (340 million contracts traded, +4%). On Eurex, Euro- Bund futures remained the most actively traded contract (179 million) but volumes decreased by 6%. Continuing this theme, the Eurex Euro-Bobl futures (where the underlying has a shorter maturity) saw volumes down 12%, with 113 million contracts traded. Long-Term Interest Rate Derivatives (number of contracts traded) Similar to STIR contracts, open interest for LTIR contracts grew significantly in 2014 (+25%). All of the top five exchanges experienced an increase in open interest. Top five exchanges by number of long-term interest rate derivatives contracts traded in 2014 Exchange Millions of contracts traded Notional Value (bn USD) Open Interest ('000 contracts) Notional Out. Amounts (bn USD) Number of trades ('000) 2014 AGR 2014 AGR 2014 AGR 2014 AGR 2014 AGR 1 CME Group 876 7% % % % % 2 Eurex % % % % % 3 Australian Securities Exchange 79 2% % % % % 4 ICE Futures Europe 37-15% % % 69 2% NA NA 5 Korea Exchange 31-24% % % NA NA % Others 48-19% % % 40-78% % Total % % % % % WFE/IOMA Derivatives Market Survey

28 2.2 Interest rate derivatives clearing Cleared interest rate derivatives (predominantly interest rate swaps) continue to dominate in terms of notional outstanding values, despite a slight decline in 2014 (-6%). Exchange traded and cleared LT-IR futures and options continued to increase significantly both in open positions (+33%) and notional outstanding (+28%). Interest Rate Derivatives Clearing % change 2014/13 Open Positions (thousands of contracts) Short-Term Options and Futures % Long-Term Options and Futures % Interest Rate Sw aps % Notional Outstanding (USD billions) Short Term Options and Futures % Long-Term Options and Futures % Interest Rate Sw aps % WFE/IOMA Derivatives Market Survey

29 3 CURRENCY DERIVATIVES 2014 volumes for currency derivatives continued their downward trajectory from their 2011 high, with a significant decrease of 16% to 2.1bn contracts traded, after a slight increase of 2.5% in Both currency options and futures decreased, with options seeing the largest decrease (-44%). Futures decreased 10.8%. Number of currency derivatives traded worldwide (billions of contracts) Looking deeper into the regional trends: Asia Pacific saw the largest decrease in volumes, falling 46%. This decline was mainly driven by large decreases in India (down by 47%), with both NSE India and MCX- SX decreasing significantly (-50% and -76.5% respectively). EMEA was the only region to grow, with an increase of 56% in volumes. This was mainly driven by a large increase on the Moscow Exchange, which saw a 63% increase in volumes. Moscow Exchange represents 89% of the regional volumes, and 36% of the global volumes of currency derivatives. The Americas remained stable, with a slight decrease of 0.2%. CME Group and ICE Futures US both saw a decrease (-9.4% and % respectively), whilst Nasdaq US markets saw an increase of 34%. Central and Latin American exchanges all grew or remained stable, with Mexican Derivatives Exchange increasing the most at 47%. WFE/IOMA Derivatives Market Survey

30 Currency Derivatives (number of contracts traded) When looking at the currency pair used as underlying, most exchanges provide contracts to hedge their local currency against the USD (i.e. INR/USD for Indian exchanges, RUB/USD for Moscow Exchange, and BRL/USD for BM&FBOVESPA). CME provides much more variety in the currency pairs traded, with the USD/EUR being the most popular. The JSE s British Pound/Rand contract also saw a large increase in volume traded 2014, up 65% to 27 million contracts. Top 10 exchanges by number of currency derivatives contracts traded in 2014 Exchange Millions of contracts traded Notional Value (bn USD) Open Interest ('000 contracts) Notional Out. Amounts (bn USD) 2014 AGR 2014 AGR 2014 AGR 2014 AGR 1 Moscow Exchange % % % NA NA 2 National Stock Exchange of India % % % % 3 BSE Limited 212 NA 213 NA 504 NA NA NA 4 CME Group 202-9% % % % 5 MCX SX % % NA -100% NA NA 6 BM&FBOVESPA 121 0% % % 64-45% 7 Rofex 65 29% 69 28% % NA NA 8 Korea Exchange 50-6% 502-6% 581 5% NA NA 9 Johannesburg Stock Exchange 45 30% 47 38% % NA NA 10 Tokyo Financial Exchange Inc % NA NA % NA NA Others 79-35% % % 17-17% Total % % % % WFE/IOMA Derivatives Market Survey

31 The most actively traded currency derivatives in the world in 2014 Products AGR AGR AGR 1 USD/RUB USD Moscow Exchange 656 NA NA NA NA NA 2 USDINR Futures USD and 1 Lot National Stock Exchange of India % % % 3 USDINR Options USD and 1 Lot National Stock Exchange of India 99-61% % % 4 U.S. Dollar futures USD BM&FBOVESPA 82-1% % % 5 Dollar USD Rofex 65 29% 69 29% % 6 EURO FUTURE EUR CME Group 52-15% % % 7 US Dollar Futures USD Korea Exchange 49-6% 489-6% 544 3% 8 USD/RUB USD Moscow Exchange 43 NA NA NA NA NA 9 JAPANESE YEN FUTURES EUR CME Group 38-10% % 224-4% 10 FX Margin Contracts varied by currency pairs Tokyo Financial Exchange Inc % NA NA % 11 British Pound/Rand GBP Johannesburg Stock Exchange 27 65% 27 NA NA 12 EUR/USD EUR Moscow Exchange 26-61% NA NA NA NA 13 U.S. Dollar Rollover USD BM&FBOVESPA 25-1% % 0 NA 14 BRITISH POUND FUTURES GBP CME Group 25-15% % % 15 AUSTRALIAN DOLLAR FUTURES AUD CME Group 23-14% % 119-1% 16 EUR/RUB EUR Moscow Exchange % NA NA NA NA 17 Mexican Peso / U.S. Dollar Futures USD MexDer 20 47% % 775-3% 18 CANADIAN DOLLAR FUTURES CAD CME Group 15-13% % 96-35% 19 U.S. Dollar NA Borsa Istanbul 13 46% 13 47% % 20 Dollar Options Tel-Aviv Stock Exchange 13 28% % % 21 EURINR Futures EUR and 1 Lot National Stock Exchange of India 12-27% 17-27% 45-14% 22 GBPINR Futures GBP and 1 Lot National Stock Exchange of India 12 14% 19 17% 29-23% 23 MEXICAN PESO FUTURES NA CME Group 10 1% 391-3% % 24 SWISS FRANC FUTURES NA CME Group 10 6% % 59 15% 25 INR-USD INR Dubai Gold & Commodities Exchange (DGCX) 9-20% % 19 13% 26 U.S. Dollar options USD BM&FBOVESPA 8-2% % % 27 US$ & CRB NA ICE Futures U.S. 8-11% % % 28 EURO OPTIONS NA CME Group 6 9% % 49 3% 29 U.S. Dollar Forward points USD BM&FBOVESPA 5 60% % 0 NA 30 JPYINR Futures JPY and 1 Lot National Stock Exchange of India 5-50% 5-53% 14 43% Total % % % *NYSE Liffe Europe before 2014 markets Size Exchange Millions of contracts traded Notional Value ('000 USD) Open Interest ('000 contracts) While the Indian and Russian exchanges dominate in terms of number of contracts traded, the CME Group still represents around 70% of the total notional value traded even though the exchange saw a slight decrease in volumes in WFE/IOMA Derivatives Market Survey

32 2014 breakdown by market of Similar to the IR market, the currency derivatives market remains a largely OTC market, accounting for 99.5% of the notional outstanding amount. In recent years, OTCD and ETD outstanding amounts seemed to have followed the same trends and were both higher in Notional outstanding amounts of on-exchange and OTC currency derivatives WFE/IOMA Derivatives Market Survey

33 4 COMMODITY DERIVATIVES Commodity product volumes grew 5% in 2014, exceeding 4 billion contracts traded. Commodity futures surpassed single stock options to become the most traded type of derivative contract in 2014, with over 3.8 billion contracts traded. The increase in volumes was driven by an increase of 14% in the Asia Pacific region, masking a decrease of 7% in the Americas and 2% in the EMEA region. The growth in the Asia Pacific region was mainly driven by the 22% growth in Mainland China, which represents 93% of the total regional volumes, and 56% of the total global volumes. In of the rest of the Asia Pacific region, volumes decreased by 44%. The American region is dominated by two US exchanges that account for 99% of the regional total. The CME Group saw a 1% decrease and ICE Futures US, 38% decline in volumes. Contrasting trends were observed in the EMEA region in Three exchanges experienced growth: Euronext (25%), Dubai Gold and Commodities Exchange (14%) and London Metal Exchange (4%). The rest saw drops, with Eurex and Moscow seeing the largest decreases (-84% and -45% respectively). Commodity Derivatives (number of contracts traded) WFE/IOMA Derivatives Market Survey

34 Top 10 exchanges by number of commodity derivatives contracts traded in 2014 Exchange Millions of contracts traded Notional Value (bn USD) Open Interest ('000 contracts) Notional Out. Amounts (bn USD) 2014 AGR 2014 AGR 2014 AGR 2014 AGR 1 Shanghai Futures Exchange % % % NA NA 2 CME Group 778-1% % % % 3 Dalian Commodity Exchange % % % NA NA 4 Zhengzhou Commodity Exchange % % % 15 4% 5 ICE Futures Europe 327-1% NA NA NA NA NA NA 6 ICE Futures US % NA NA % NA NA 7 London Metal Exchange 177 4% NA NA NA NA NA NA 8 Multi Commodity Exchange of India % NA NA NA NA NA NA 9 Tokyo Commodity Exchange (TOCOM) 22-19% NA NA NA NA NA NA 10 Moscow Exchange 20-45% 24-49% % NA NA Others 41 7% % % 5-87% Total % % % NA (1) In the 2011, fuel oil contract size was increased from 10 tons/lot to 50 tons/lot while natural rubber contract size was increased from 5 tons to 10 tons. (2) Raw Sugar Futures is under the process of change for its Contract size from 10,000 kilograms to 50,000 kilograms but volume is low. Number of commodity options and futures traded worldwide (billions of contracts) WFE/IOMA Derivatives Market Survey

35 5 OTHER DERIVATIVES Volumes in the other derivatives category fell 5% in 2014, mainly due to the fact that ASX stopped offering CFDs on June Trading in other derivatives remained extremely concentrated in two exchanges representing 89% of the total volumes in 2014, with CBOE/CFE volatility index options and futures accounting for almost half, closely followed by the JSE with 40% of the volumes. Volumes of volatility index derivatives on CBOE/CFE increased by 15%. JSE saw a 7% increase in volumes or other derivatives (African Derivatives, Can-Do, IDX, IDX dividend and dividend futures). Commodity Derivatives (number of contracts traded) Top 10 exchanges by number of currency derivatives contracts traded in 2014 Exchange Millions of contracts traded Notional Value (bn USD) Open Interest ('000 contracts) Notional Out. Amounts (bn USD) 2014 AGR 2014 AGR 2014 AGR 2014 AGR 1 Johannesburg Stock Exchange 171 7% 10-2% NA NA NA NA 2 Chicago Board Options Exchange % % % 10-6% 3 CBOE Futures Exchange (CFE) 51 26% % % 6 20% 4 Eurex 20 36% % % 29 13% 5 Australian Securities Exchange (1) 14-84% % NA NA NA NA Others 13 23% 16-84% % 4-3% Total 428-5% % % 49 4% Johannesburg Stock Exchange: African Derivatives,Can-Do, IDX, IDX dividend and dividend futures CBOE/CFE: Volatility Index Options and Futures Eurex: Volatility Index Options and Futures, Dividend Options, Commodity Index Options and Futures, Equity Index Dividend and Single Stock Dividend Futures, Carbon emission futures and Inflation and Intellectual Property Futures Australian Securities Exchange: CFDs - On Monday 2 June 2014 ASX closed the ASX CFD market. 1 On Monday 2 June 2014 ASX closed the ASX CFD market. WFE/IOMA Derivatives Market Survey

36 ANNEX TRADING STATISTICS 1. Single Stock Options Volume Notional Value Open interest Notional Out. Amounts Number of trades Options premium Americas BATS Global Markets NA NA NA NA NA NA NA NA NA NA BM&FBOVESPA Bolsa de Comercio de Buenos Aires NA NA NA NA Boston Options Exchange (TMX Group) NA NA NA NA NA NA NA NA NA NA Chicago Board Options Exchange NA NA International Securities Exchange (ISE) NA NA NA NA NA NA NA NA NA NA MexDer Miami International Securities Exchange NA NA NA NA NA NA NA NA NA NA Montréal Exchange (TMX Group) NASDAQ OMX (US markets) NA NA NA NA NA NA NYSE Derivatives NA NA NA NA NA NA Asia Pacific Australian Securities Exchange NA BSE Limited Hong Kong Exchanges and Clearing NA NA Japan Exchange Group NA NA NA NA NA NA MCX SX NA NA 46 NA NA NA NA NA NA 1 National Stock Exchange of India TAIFEX EMEA Athens Exchange Borsa Istanbul Eurex Euronext NA NA ICE Futures Europe NA NA NA NA Johannesburg Stock Exchange NA NA NA 311 LSE Group NA NA MEFF Moscow Exchange NA NA NA NA NA NA NASDAQ OMX Nordic Exchanges NA NA NA NA Oslo Børs Tel-Aviv Stock Exchange Wiener Börse NA 5 NA NA NA NA Grand Total Volume is the number of contracts traded. A contract is a standard unit of trading denoted by the number of shares or the amount of capital that may vary from class to class, or from product to product, as defined by the exchange. 2. Notional Value is the number of contracts traded multiplied by the contracts underlying value. Contracts underlying value is calculated by multiplying the market price of the underlying asset for each contract times the contract s multiplier. It is an approximate measure of the underlying value of the number of contracts traded. 3. Open Interest is defined as the number of contracts outstanding at a given time (close of trading at the last trading day of the year) 4. Notional Outstanding Amounts is defined as the monetary value of open interest. 5. Number of trades registered corresponds to the number of traded contracts that are registered and cleared by the clearing house. 6. Option premium represents the money paid by buyers to writers of calls or put options. All figures are single counted.

37 2. Single Stock Futures Volume Notional Value Open interest Notional Out. Amounts Number of trades Americas NA 35 NA Bolsa de Valores de Colombia NA 34 NA MexDer One Chicago NA NA NA NA NA NA NA NA Asia Pacific BSE Limited Hong Kong Exchanges and Clearing NA NA Korea Exchange MCX SX NA NA NA 78 NA 0.39 NA National Stock Exchange of India TAIFEX Thailand Futures Exchange (TFEX) NA NA NA NA EMEA Athens Exchange Borsa Istanbul Budapest Stock Exchange Eurex Euronext NA NA NA ICE Futures Europe NA NA NA Johannesburg Stock Exchange NA NA LSE Group NA NA MEFF Moscow Exchange NA NA NA NA NASDAQ OMX Nordic Exchanges NA NA Oslo Børs Warsaw Stock Exchange Wiener Börse NA 16 NA 0.1 NA NA NA NA NA NA Grand Total

38 3. Stock Index Options Volume Notional Value Open interest Notional Out. Amounts Number of trades Options premium Americas BM&FBOVESPA Boston Options Exchange (TMX Group) NA NA NA NA NA NA NA NA NA NA Chicago Board Options Exchange CME Group NA NA ICE Futures US NA NA NA NA NA NA International Securities Exchange (ISE) NA NA NA NA NA NA NA NA NA NA MexDer Montréal Exchange (TMX Group) NASDAQ OMX (US markets) NA NA NA NA NA NA NYSE Derivatives NA NA NA NA NA NA NA NA Asia Pacific Australian Securities Exchange BSE Limited Bursa Malaysia Derivatives (BMD) NA NA NA NA NA NA Hong Kong Exchanges and Clearing NA NA NA NA Japan Exchange Group NA NA NA NA NA Korea Exchange NA NA MCX SX NA NA NA 65 NA 0.3 NA NA 81 National Stock Exchange of India Singapore Exchange NA NA NA NA NA NA NA NA TAIFEX Thailand Futures Exchange (TFEX) NA NA NA NA NA NA EMEA Athens Exchange Borsa Istanbul Budapest Stock Exchange NA NA NA NA NA NA NA NA NA NA NA NA Eurex Euronext NA NA ICE Futures Europe NA NA NA NA Johannesburg Stock Exchange NA NA NA LSE Group NA NA MEFF Moscow Exchange NA NA NA NA NA NA NASDAQ OMX Nordic Exchanges NA NA NA NA Oslo Børs Tel-Aviv Stock Exchange Warsaw Stock Exchange Wiener Börse NA 64 NA NA NA NA Grand Total