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2010 WFE/IOMA derivatives market survey results.

Peter Clifford Mumbai 2 May 2011

Summary

1. Overall markets activity 2. Equity derivatives 3. Interest rate derivatives 4. Currency derivatives 5. Commodity derivatives 6. Exotic derivatives

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1. Overall markets activity

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1a. Overall markets activity (+25%)


Overall markets activity
- Highest level since 2004 : 22.4 billion contracts (11.2 billion futures and 11.1 billion options) against 17.8 billion in 2009. - For the first time, the number of futures surpassed the number of options. - With the highest growth rate (+41%), Asia-Pacific becomes the first time zone.

Derivatives volume growth (billions of contracts traded)

2004

Volumes by geographical zone in 2010


Americas 21% 39%

25
20 15 10 5

2005
2006 2007 2008

Asia-Pacific
Europe-AfricaMiddle East

2009
Options Futures Total 2010

40%

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1b. Breakdown of volumes and NV by product type


Overall markets activity
- Equity products still represent the dominant share of derivatives trading in terms of number of traded contracts although their relative weight slightly decreased to 61% in 2010 (against 68% in 2009 and 70% in 2010). - In terms of notional value, interest rate derivatives are by far the largest segment even when OTC trades are not taken into account.

Breakdown of volumes by product group in 2010

Estimated breakdown of notional value by product group 2% 3%

14%
11% 14% 61%

Equity Interest rate


Currency Commodity

10%

85%

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1c. Growth rate by product type


Overall markets activity
- Equity derivatives grew rapidly (+14%) especially in Asia Pacific region (+20%) followed by the Americas (+10%) and Europe Africa Middle East region (+8%). - Interest rate segment that had been the most heavily hit by the financial crisis grew substantially (+29%), but did not reach again pre-crisis volumes. - Commodity derivatives continued to grow rapidly in 2010 (+34%) with Chinese Exchanges accounting for 51% of the traded volumes. - Currency derivatives, remain the smallest segment of organized markets but, driven by the Indian exchanges, they have experienced triple-digit growth rates in 2010 (+142%).

2010 volume and 2010/2009 growth rate Single Stock Millions of contracts traded Growth rate of contracts traded Options Futures Options Futures 3 905 1 269 9% 17% Stock Index 5 019 2 283 20% 5% ETF 1 242 16% STIR 491 1 281 21% 27% LTIR 157 1 251 31% 33% Currency 56 2 339 36% 146% Commodities 195 2 834 48% 32% Exotic 63 5 88% 282%

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2. Equity derivatives

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2a. Vivid growth of equity products (+14%)


- Except in 2009, volumes increased rapidly every year since 2004. - All types of equity products are concerned.
Options

Equity products volume growth (billion contracts)


7 6 5 4 3 2 1 0
Stock options Stock futures Index & ETF options Index futures 2 1 0
Futures

Equity derivatives

- Vivid growth observed on exchanges and over the counter.

2004

2005

2006

2007

2008

2009

2010

Notional outstanding amounts of on-exchange and OTC equity derivatives (billion USD)
10 000 8 000 6 000 4 000 2 000 0
Source: BIS

OTC

On-exchange

Dec. Dec. Dec. Dec. Dec. Dec. Dec. Dec. Dec. Dec. Dec. June 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
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2b. Growth linked with volatility


Equity derivatives
- When comparing the monthly volumes of EURO Stoxx 50 options and futures traded on Eurex since 2008 with the volatility of the underlying index, we can see that the peak of volumes are generally observed when the volatility increases sharply. - Flash crash in May 2010.

Millions of EURO Stoxx 50 options and futures traded on Eurex per month and volatility of the underlying index
80%
70% 60%
Volatility
EURO Stoxx 50 derivatives traded on EUREX Monthly volatility of EURO Stoxx 50 Index

120

90
Volume

50% 40% 30% 20% 30 60

10%
0%
J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M
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2c. Single Stock Options (+9%)


- Growth driven by South America and Asia. - The US still dominate this market with 60% of the volumes. - BM&FBOVESPA surged again.
86 106 2 903 3 197

Equity derivatives

2009 2010
592 601

Americas

Top 10 exchanges by number of single stock options contracts traded in 2010 Millions of Notional Value % % Exchange contracts traded (bn USD) 2010 2009 change 2010 2009 change 1 BM&FBOVESPA 802 547 +47% 1 730 931 +86% 2 CBOE 573 635 -10% 2 700 2 188 +23% 3 NASDAQ OMX PHLX 549 426 +29% NA NA 4 ISE 470 683 -31% NA NA 5 Eurex (1) 309 305 +1% 881 752 +17% 6 NYSE Arca Options 305 274 +11% NA NA 7 NYSE Amex 287 171 +68% NA NA 8 NYSE Liffe (Europe) (1) 175 171 +3% 587 455 +29% 9 NASDAQ Op. Market US 82 52 +57% 0 0 +80% 10 Boston Options Exchange 68 75 -9% NA 25 Others 283 243 +17% NA NA Total 3 905 3 581 +9% 14 653 10 576 (1) Including OTC Business registered on the Exchange
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Asia Pacific Europe, Africa, Middle East

- Stability in Europe including OTC registered on exchanges.


- Asia still lags behind despite very important growth in 2010.

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2d. TOP 10 Single Stock Options


Equity derivatives
- The 10 most actively traded single stock options are representing 30% of the volumes traded worldwide. - Vale and Petrobas on BMF&BOVESPA remain the most actively traded options. - TOP 10 options increased faster in 2010 (+20%) than all single stock options taken as a whole (+9%).
Top 10 single stock options contracts traded in 2010
Millions of Option % % Contract - Exchange contracts Premium 2010 2009 change 2010 2009 change 1 Vale R Doce PNA - BM&FBOVESPA 420 265 +58% 25 15 +75% 2 Petrobras PN - BM&FBOVESPA 333 261 +28% 13 13 +2% 3 Citigroup - CBOE, PHLX, ISE, AMEX & ARCA 162 202 -20% NA NA NA 4 Bank of America - CBOE, PHLX, ISE, AMEX & ARCA 92 110 -16% NA NA NA 5 Apple Inc. - CBOE, PHLX, ISE 45 35 +27% NA NA NA 6 OGX Petroleo - BM&FBOVESPA 20 NA NA 1 NA NA 7 Allianz - Eurex (1) 17 16 +8% 2 2 -3% 8 General Electric - PHLX 17 11 +55% NA NA NA 9 ING - NYSE Liffe (1) 16 17 -7% 1 3 -52% 10 Arcelor Mittal - NYSE Liffe (1) 12 10 +18% 2 3 -9% Total 1 134 927 +20% NA NA (1) Excluding OTC Business registered on the Exchange - Eurex: premium are including OTC
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2d. Success of flexible options in the US (+98%)


Equity derivatives
- Flexible products allow investors to customize the exercise price, the expiration date or the exercise style of options. - In the United States, 0.63% of the volumes and 1% of the paid premium. - In 2010 volumes doubled while the total number of single stock options cleared by OCC only increased by 3% that year. CBOE who first introduced these products in 1993 is still the leader. - Other examples in Europe-Africa: Eurex, JSE (Can-Do).

Number of single stock flexible options cleared by OCC Exchange NYSE Amex NYSE Arca Options Chicago Board Options Exchange (CBOE) NASDAQ OMX PHLX Total flexible options on OCC Market share of flexible options
Source : OCC

Number of contracts traded 2010 1 176 235 2 838 681 8 904 617 1 845 886 14 765 419 0.63% 2009 1 161 462 3 168 528

% change +1% -10%

Premiums (Mio USD) 2010 165 1 092 4 029 201 5 487 514 591 1.07% 2009 169 848 1 759 142 2 917 494 038 0.59%

% change -2% +29% +129% +41% +88% +4% -

2 404 363 +270% 710 446 +160% 7 444 799 0.32% +98% +3% -

Memo : Total single stock options on OCC 2 361 987 452 2 298 970 496

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2e. Single Stock Futures (+17%)


- Growth driven by OTC trades registered on Eurex and NYSE Liffe Europe (38% of the volumes world wide in 2010). - RTS, second in terms of notional value but with much smaller contracts.
2009
2010 743 375 889

Equity derivatives

340
3 5

Americas

Top 10 exchanges by number of single stock futures contracts traded in 2010 Millions of Notional Value % % Exchange contracts traded (bn USD) 2010 2009 change 2010 2009 change 1 NYSE Liffe (Europe) (1) 289 199 +45% 980 491 +99% 2 RTS 227 249 -9% 85 67 +26% 3 Eurex (1) 202 117 +73% 533 382 +39% 4 NSE India 176 161 +9% 1 210 968 +25% 5 ASX (2) 153 142 +8% 2 2 +26% 6 Johannesburg SE (3) 116 107 +9% 39 30 +30% 7 Korea Exchange 45 37 +21% 19 13 +50% 8 MEFF 20 45 -56% 30 59 -48% 9 Borsa Italiana 13 11 +16% 48 48 -0% 10 MICEX 13 1 +1223% 6 NA Others 17 18 -5% NA NA Total 1 269 1 085 +17% 3 012 2 094 (1) Including OTC Business registered on the Exchange (2) Equity CFDs (3) Including Dividend Futures and ETF Futures
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Asia Pacific Europe, Africa, Middle East

- First exchange for notional value: NSE India. - Special case of CFDs traded onexchange in Australia and Dividend futures in JSE.

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2f. Index Options (+20%)


- Highest growth rate among equity derivatives. - KOSPI 200 options increased at the same pace (+21%) as all other exchanges in the world taken as a whole. - Other Asian exchanges also experienced remarkable and even higher growth rates.
243 3 526 2 921 2009 2010 444 Korea Ex.

Equity derivatives

267

689

566

537

Americas

Asia Pacific Europe, Africa, Excl. Korea Middle East

Top 10 exchanges by number of stock index options contracts traded in 2010 Millions of Notional Value % % Exchange contracts (bn USD) 2010 2009 change 2010 2009 change 1 Korea Exchange 3 526 2 921 +21% 69 913 43 921 +59% 2 National Stock Exchange of India 530 321 +65% 3 220 1 385 +132% 3 Eurex (1) 369 402 -8% 13 422 13 081 +3% 4 CBOE 208 189 +10% 22 473 16 531 +36% 5 TAIFEX 97 76 +27% 1 218 717 +70% 6 Tel Aviv SE 70 62 +13% 2 207 1 404 +57% 7 NYSE Liffe (European markets) (1) 57 63 -10% 3 519 3 436 +2% 8 Osaka SE 44 35 +25% NA NA 9 CME Group 40 32 +27% 5 140 3 590 +43% 10 NASDAQ OMX Nordic Exchanges 14 14 -3% NA NA Others 64 58 +12% NA NA Total 5 019 4 175 +20% 69 184 83 354 (1) Including OTC Business registered on the Exchange
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- CBOE still dominates the market in the US. - Negative global growth rate (-5,1%) in Europe, Africa and Middle East time zone.

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2g. Index Futures (+5%)


- Half of the notional value of equity derivatives. The bigger size shows that they are probably most often used by institutions for hedging purpose. Slower increase than other markets. - CME Group still dominates the market in the Americas (87% of the volumes).
Americas Asia Pacific

Equity derivatives

791

800

2009 576

2010

918 797

565

Top 10 exchanges by number of stock index futures contracts traded in 2010 Millions of Notional Value % % Exchange contracts traded (bn USD) 2010 2009 change 2010 2009 change 1 CME Group 698 708 -1% 39 785 33 359 +19% 2 Eurex (1) 436 395 +10% 22 803 18 177 +25% 3 RTS 227 150 +51% 679 303 +124% 4 NSE India 156 196 -20% 890 777 +15% 5 Osaka SE 148 130 +13% 3 996 3 550 +13% 6 NYSE Liffe (Europe) (1) 96 93 +4% 6 465 5 230 +24% 7 Korea Exchange 87 83 +4% 8 570 6 027 +42% 8 Singapore Exchange 59 52 +14% NA NA 9 TurkDer 57 65 -14% 277 200 +39% 10 Hong Kong Exchanges 43 43 -1% 4 104 3 497 +17% Others 276 249 +11% NA NA Total 2 283 2 164 +5% 102 715 82 906 (1) Including OTC Business registered on the Exchange
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Europe, Africa, Middle East

- Several exchanges with significant volumes in Asia. - Higher growth rate in Europe than in other time zone.

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2h. ETF Options (+16%)


- Mainly a US market: very low volumes in Europe, mainly OTC on Eurex (NYSE Liffe didnt trade ETF options in 2010), in Asia and in South America. This reflects the uneven development of the underlying market of ETFs which first appeared at the beginning of the 1990s in the US, and only ten years later in Europe. - In the United States, the market is 4.7 times bigger than stock index options market in terms of number of contracts traded, but the size of the contracts is much smaller. For example the size of SPDR SP500 ETF options traded on CBOE are one-tenth the size of SP500 options.
Top 10 exchanges by number of ETF options contracts traded in 2010 Millions of Notional Value % Exchange contracts traded (bn USD) 2010 2009 change 2010 2009 1 NASDAQ OMX PHLX 294 175 +68% NA NA 2 CBOE 276 277 -0% 2 047 1 655 3 ISE 264 274 -4% NA NA 4 NYSE Arca Options 182 148 +23% NA NA 5 NYSE Amex 151 77 +96% NA NA 6 NASDAQ Op. Market US 47 50 -5% 0 0 7 Boston Options Exchange 23 62 -63% NA NA 8 Montral Exchange 3.3 2.8 +19% 23 20 9 BM&FBOVESPA 1.0 0.2 +299% 0 1 10 Hong Kong Exchanges 0.5 0.1 +314% 3 3 Others 0.2 0.0 +1756% NA NA Total 1 242 1 067 +16% 8 848 6 077 (1) Including OTC Business registered on the Exchange
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Equity derivatives

% change +24% -8% +16% -24% +18% -

- Volumes of ETF options in the US increased faster in 2010 (+16.3% against +9.6% for index options).

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2i. Equity derivatives clearing


- OCC is the world's largest equity derivatives clearing organization in terms of number of traded contracts. Participants include: Boston Options Exchange, CBOE, ISE, NASDAQ OMX PHLX, NYSE Amex and NYSE Arca. - In the Europe, the three largest clearing organisations are Eurex, NYSE Liffe Clearing and LCH.Clearnet.

America

Equity derivatives

(millions of contracts single counted in 2010)

109 2% 738 13% 843 15% 3 926 70%

OCC
BM&FBOVESPA CME Group

Others

Equity derivatives clearing in Europe , Africa, Middle East in 2010


(contracts single counted - millions) 151 81 5% 3% 304 10%

476 16% Eurex OTC


231 37% 341 55% 46 8% NYSE Liffe Clearing non-OTC
Eurex NYSE Liffe RTS Johannesburg SE NASDAQ OMX Nordic Others

680 52%

636 48%

Eurex non-OTC

NYSE Liffe Clearing OTC (Bclear)

LCH.Clearnet non-OTC 618 21% 1 316 45%

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3. Interest rate derivatives

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3a. Recovery of interest rate products (+29%)


- After two years of decline, significant increase in 2010. Neverthelss, not sufficient to reach again the record volumes observed in 2007. - The market is highly dominated by OTC products in terms of notional outstanding amounts due to the importance of interest swaps for institutional investors.
0,6 0,5
Options

Interest rate products volume growth (billion contracts)

Interest rate derivatives

0,4
Futures
0,3 0,2 1

0,1 0,0 2004 STIR Options 2005 2006 2007 2008 2009 2010 LTIR Futures 0

LTIR Options

STIR Futures

Evolution of notional outstanding amounts of on-exchange and OTC interest rate derivatives (trillion USD) 500 100 OTC swaps OTC FRAs & opt. On-exchange fut. & opt.
80

OTC derivatives

400

300 200 100 0

60 40 20 0

- The recent development of swap clearing facilities by various clearing houses should improve the transparency.

On-exchange derivatives

Source: BIS

Dec. Dec. Dec. Dec. Dec. Dec. Dec. Dec. Dec. Dec. Dec. June 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
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3b. Surge in 2011 with interest rates increase?


- Since 2009, Interest Rate derivatives have been evolving in a context of near-zero interest rates policy from several major Central Banks.
- This trend however may reverse in 2011, the ECB raised its main refinancing interest rate from 1% to 1.25% in April and may be followed by the FED and the Bank of England. This anticipation on interest rates increase has led to a surge in interest rate derivative volumes in the first months of 2011.

Interest rate derivatives

Main refinancing operations interest rates

10Y treasury bonds interest rates

6
5 4

6
ECB 5 Bank of England FED 4 Bank of Japan 3 2 1

3
2 1 0 2004 2005 2006 2007 2008 2009

Germany
2010 2011

UK

US

Japan

0 2004 2005 2006 2007 2008 2009 2010 2011


20

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3c. Much smaller size of LTIR products


Interest rate derivatives
- The size of long term interest rate contracts (generally 100 000 local currency) is much smaller than that of short term interest contracts (most of the time 1 000 000 local currency). Thats why as it is shown in the following graph - short term interest rate derivatives account for such a large part of the notional value (83%).

Breakdown of volumes by product group in 2010 16% 39%

Estimated breakdown of notional value by product group in 2010


STIR Options

STIR Futures LTIR Options

14% 3%

24%

5%

40%
LTIR Futures

59%

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3d. Short term interest rate (+27%)


1 170

- Highly concentrated market. - CME Group accounts for 59% of the volumes and 95% of the notional value in the Americas. Mostly concentrated on Eurodollar Futures ( 511 million contracts traded in 2010).

872

2009
2010 508 578 18 24

Interest rate derivatives

Americas

Top 10 exchanges by number of short term interest rate* derivatives traded in 2010 Millions of Notional Value % % Exchange contracts traded (bn USD) 2010 2009 change 2010 2009 change 1 CME Group 695 599 +16% 695 684 600 032 +16% 2 NYSE Liffe (Europe) 557 492 +13% 644 482 556 523 +16% 3 BM&FBOVESPA (1) 431 222 +94% 23 198 14 110 +64% 4 MexDer 30 42 -29% 236 310 -24% 5 ASX 24 18 +34% 30 423 17 270 +76% 6 NASDAQ OMX Nordic 20 15 +31% NA NA 7 Montral Exchange 14 8 +78% 13 570 6 959 +95% 8 Eurex (1) 0.3 0.4 -34% 350 523 -33% 9 Bursa Malaysia 0.1 0.1 -25% 30 36 -17% 10 Johannesburg SE 0.2 0.1 +275% 13 6 +120% Others 0.0 0.0 -93% NA NA Total 1 772 1 398 +27% 1 423 899 1 208 867 * Derivatives where original term to maturity of underlying asset is equal to or less than 12 months (treasury bills, deposits etc) (1) Including OTC Business registered on the Exchange
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Asia Pacific Europe, Africa, Middle East

- BMF&BOVESPA nearly doubled, but notional value is much smaller. - NYSE Liffe Europe accounts for 97% of the volumes in EAME time zone. - Negligible volumes in Asia.

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3e. Long term interest rate (+33%)


- Higher growth rate than STIR. - The largest exchange, CME Group, experienced one of the highest growth rates (+44%) driven by 10Y treasury note futures. - Montral and Mexder also increased rapidly (respectively +20% and +50%).
483

Interest rate derivatives

696

2009 2010 497

612

79

99

Americas Asia Pacific Europe, Africa, Middle East Top 10 exchanges by number of long term interest rate* derivatives traded in 2010 Millions of Notional Value - +25% in Asia Pacific % % Exchange contracts traded (bn USD) region. 2010 2009 change 2010 2009 change 1 CME Group 684 474 +44% 170 379 123 902 +38% - In Europe, Eurex 2 Eurex (1) 574 465 +23% 91 101 71 186 +28% increased at a slower 3 ASX 50 36 +40% 4 598 2 821 +63% pace than CME and 4 NYSE Liffe (Europe) 30 25 +19% 4 656 3 763 +24% the two biggest Asian 5 Korea Exchange 27 20 +35% 2 599 1 740 +49% 6 Tokyo Financial Ex. Inc. 11 13 -14% NA NA exchanges (ASX and 7 Tokyo SE Group 10 9 +9% 16 184 13 577 +19% Korea). 8 NASDAQ OMX Nordic 7.4 5.7 +29% NA NA 9 Montral Exchange 6.4 5.3 +20% 620 470 +32% 10 MexDer 4.8 3.2 +50% 48 31 +58% Others 3.2 1.5 +109% NA NA Total 1 408 1 059 +33% 294 590 221 600 * Derivatives where original term to maturity of underlying asset is greater than 12 months (treasury bonds, corporate bonds, Eurobonds etc) (1) Including OTC Business registered on the Exchange
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3f. Interest rate products clearing


- With 249 trillion USD of notional outstanding cleared, the clearing facility for interest rate swaps developed by LCH.Clearnet and first launched in 1999, namely SwapClear, is by far the leader in that market.

Interest rate derivatives clearing


(estimated notional outstanding amounts USD trillions at the end of 2010)

Interest rate derivatives

CME Group on-exchange

26

23 6

NYSE Liffe on-exchange Other on-exchange trades

249

LCH.Clearnet OTC (SwapClear)

Evolution of notional outstanding amounts and volumes on SwapClear


Notional outstanding amount (USD trillions)

Monthly trade registrations (thousands)

350
300 250 225 229 234 229 237 247 248 249 252 267 277

212

219

200
150 100 50 0

Month end notional outstanding amount Monthly number of trades


Mar 10 Apr 10 May 10 Jun 10 Jul 10 Aug 10 Sep 10 Oct 10 Nov 10 Dec 10 Jan 11 Feb 11 Mar 11
Mumbai 2 May 2011

90 85 80 75 70 65 60 55 50 45 40

Source: LCH Clearnet

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4. Currency derivatives

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4a. Two-digits growth rate for currency products (+142%)


- With 2.4 billion contracts traded, it remains the smallest segment of organized markets. - Huge development in India. - The market is highly dominated by OTC products.
Currency products volume growth (million contracts) 2 500
2 000 1 500 1 000 500 Currency Futures Currency Options

Currency derivatives

0 2004

2005

2006

2007

2008

2009

2010

Evolution of notional outstanding amounts of on-exchange and OTC currency derivatives (billion USD)
60 000 50 000 40 000 30 000 20 000 10 000 0

On-exchange derivatives

OTC derivatives

OTC options OTC currency swaps OTC forward and forex swaps On-exchange fut. & opt.

600 500 400 300 200 100 0

Source: BIS

Dec. Dec. Dec. Dec. Dec. Dec. Dec. Dec. Dec. Dec. Dec. June 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
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4b. India, but not only


- MCX-SX and National Stock Exchange of India surged by 294% and 221% respectively and were accounting for 68% of the volumes traded worldwide in 2010.
1 787

Currency derivatives

2009
2010 441 565 102 167 Asia Pacific Europe, Africa, Middle East

- In other Asian exchanges volumes also increased very fast.


- CME Group and BM&FBOVESPA, much bigger in terms of notional value.
324

Americas Top 10 exchanges by number of currency derivatives contracts traded in 2010 Millions of Notional Value contracts % % Exchange (bn USD) traded 2010 2009 change 2010 2009 change 1 MCXSX 885 224 +294% 908 221 +310% 2 NSE India 726 226 +221% 734 224 +228% 3 CME Group (1) 233 157 +48% 29 979 20 125 +49% 4 BM&FBOVESPA (1) 133 109 +22% 6 728 5 439 +24% 5 RTS 123 46 +166% 138 52 +164% 6 Tokyo Financial Ex. Inc. 110 71 +56% NA NA 7 Rofex 62 51 +21% NA NA 8 Korea Exchange 62 42 +48% NA 548 9 MICEX 13 18 -27% 14 19 -25% 10 Tel Aviv SE 8 8 +3% NA NA Others 41 39 +6% NA NA Total 2 395 991 +142% 43 431 33 240 (1) Including OTC Business registered on the Exchange
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- In Europe, growth driven by RTS (+166%), but as on Indian exchanges the notional value is much smaller than on CME and BM&FBOVESPA.

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5. Commodity derivatives

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5a. Continuing growth of commodity products (+34%)


Commodity derivatives
- Since 2004, the development of commodity derivatives markets is impressive.

- Growth of volumes was only interrupted in 2008.


- In 2010 the growth rate of volumes (+34%) was higher than for all other segments of organized derivatives markets except currency derivatives.

Commodity products volume growth (million contracts) 3 000 Commodity Futures 2 500 Commodity Options 2 000
1 500 1 000

500
0 2004
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2005

2006

2007

2008

2009

2010
29

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5b. China, but not only


- CME Group still dominates the scene and is present in all the segments. With 110 billion energy options and futures traded and cleared, Clearport accounts for 13% of CME volumes
- Chinese exchanges are accounting for 87% of the volumes traded in Asia Pacific region.
Americas
Top 10 exchanges by number of commodity derivatives contracts traded in 2010 Millions of Notional Value % % Exchange contracts traded (bn USD) 2010 2009 change 2010 2009 change 1 CME Group (1) 843 619 +36% NA NA 2 Shanghai Futures Ex. 622 435 +43% 9 134 5 399 +69% 3 Zhengzhou 496 227 +118% NA 1 399 4 Dalian Commodity Ex. 403 417 -3% 3 085 2 756 +12% 5 ICE Futures Europe 211 161 +31% NA NA 6 MCX India 197 161 +22% NA 1 232 7 London Metal Exchange 111 112 -1% NA 6 833 8 ICE Futures U.S. 59 50 +19% NA NA 9 TOCOM 28 29 -5% 807 605 +33% 10 RTS 18 11 +59% 18 8 +124% Others 35 40 -15% NA NA Total 3 023 2 262 +34% 57 551 40 456 (1) Including OTC Business registered on the Exchange
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1 754
1 287 910 675 303 366 Asia Pacific Europe, Africa, Middle East

Commodity derivatives

2009 2010

- In Europe, ICE Futures increased significantly on energy derivatives (+31%) whereas London Metal Exchange slightly decreased (-1%) on metal derivatives.

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5c. Commodity products by type of underlying


- In China, exchanges are generally specialized in one type of agricultural product: rubber for Shanghai, sobeyan for Dalian exchange, sugar and cotton for Zengzhou.
- CME Group acquired platforms for each type of products: CBOT for agricultural products, COMEX for metal derivatives and NYMEX for energy.
Total 843 622 496 403 211 197 111 59 28 18 17 4 4 9 3 023 Agr. 230 167 496 403 0 0 0 59 3 0.1 17 4 4 -

Commodity derivatives

822 27% 1384 46% 808 27%

Agricultural Metals Energy

CME Group (inc. OTC) Shanghai Futures Exchange Zhengzhou Commodity Exchange Dalian Commodity Exchange ICE Futures Europe Multi Commodity Exchange of India London Metal Exchange ICE Futures U.S. Tokyo Commodity Exchange (TOCOM) RTS NYSE Liffe (European markets) ICE Futures Canada Bursa Malaysia Others Total
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Metals Energy 82 532 444 11 0 0 0 0 0 211 144 53 111 0 0 0 20 5 7 11 0 0 0 0 0 0 -

- The highest growth rate of volumes in 2010 was observed for agricultural products (+41%) followed by metal derivatives (+33%) and energy (+11%).

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6. Exotic derivatives

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6. Great success of volatility index derivatives (+96%)


Exotic derivatives
- VIX options introduced by CBOE in 2006 are very successful. Volumes nearly doubled in 2010.

- Initiative followed by Eurex with EURO STOXX 50 Volatility index options and mini-futures and TOCOM with Nikkei-TOCOM Commodity Index futures.
- Weather options and futures on CME Group. - Emissions derivatives on CME Group, ICE Futures Europe, Bluenext.

Number of exotic derivatives contracts traded in 2010 Thousands of Notional Value % % Exchange contracts traded (million USD) 2010 2009 change 2010 2009 change CBOE - volatility index 62 452 33 329 +87% 141 964 104 916 CBOE Futures Ex. - volatility index 4 403 1 156 +281% 99 876 36 129 +176% CME Group - weather 460 454 +1% 7 295 5 770 CME Group - emmissions 105 NA NA NA Eurex (non-OTC) - volatility index 417 15 +2732% 1 455 63 +2224% Eurex (OTC) - volatility index 578 0 2 185 0 TOCOM - volatility index 72 0 1 101 0 Total 68 485 34 954 +96% 253 876 146 878 IOMA/IOCA annual conference Mumbai 2 May 2011 33

Thank you

Peter Clifford Mumbai 2 May 2011

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