India Dominates As Global Derivatives Market Soars By 64%

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Futures Industry Association (FIA ) published a report about trading in futures and options worldwide in 2023. The report disclosed a notable increase in total derivatives trading. The total number of these contracts, which include futures and options, hit a record 137.3 billion.

This marks a 64% rise compared to the previous period. This is the sixth year in a row that this type of trading has set a new record for activity in the listed derivatives market.

North America Had A Slight Increase Of 6.2%

During the worldwide positive trend, India played a vital role by showing an extraordinary 153% growth in trading equity index options. In the Asia-Pacific area, the trading volume made a remarkable surge of 104%, reaching a total of 103.5 billion contracts.

In Latin America, the trading volume remained consistent at 8.6 billion contracts, showing stability despite global fluctuations. Europe witnessed a slight upsurge of 2.6%, reaching 4.9 billion contracts, while Africa and the Middle East faced a substantial drop of 20% in trading volume.

In North America, the second biggest trading region, there was a small increase of 6.2%, involving the trading of 17.9 billion futures and options. Moreover, North America was a key player in open interest, representing 52% of the total worldwide in these financial contracts.

Currency futures And Options Fell By 8%

Equity-related deals played a big role in the market’s improvement. The number of futures and options linked to stock indices went up by 105%, hitting a huge 99.9 billion contracts in 2023.

Currency futures and options, the second-biggest type of investment, fell by 8% to 7.1 billion contracts because there was a big drop in trading currency futures. On the other hand, interest rate deals went up by 18%, reaching a total of 6.1 billion contracts. Trading of commodities like crops and energy also went up by a lot.

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Last year, North America had the most open interest, with 648 million contracts, making up 52% of open interest worldwide. The National Stock Exchange of India topped the charts in both growth rate and total volume, with a massive 123% increase, totaling 84.8 billion contracts traded.

The Options Clearing Corporation remained the biggest clearinghouse globally, stating that had 482.8 million contracts in open interest, which is more than twice as much as any other derivatives that handle financial agreements.

About Ali Raza PRO INVESTOR

Ali is a professional journalist with experience in Web3 journalism and marketing. Ali holds a Master's degree in Finance and enjoys writing about cryptocurrencies and fintech. Ali’s work has been published on a number of leading cryptocurrency publications including Capital.com, CryptoSlate, Securities.io, Invezz.com, Business2Community, BeinCrypto, and more.