Derivatives: Key market research findings
- Increased volatility in asset prices
- Incrrase in foreigh exchange turnover
Technavio has added a new market research report on the global derivatives market, which is expected to grow at a CAGR of 14% between 2015 and 2019. Derivatives is considered as the main market pillar for the international financial system as it is an important tool for risk management and investment purposes. Derivatives are used by more than 94% of the world’s largest companies. North America has the highest market share for derivatives trading, accounting for 65% of the total market. Owing to the market demand, the North American Derivatives Exchange has released an advanced trading platform that makes trading faster through a single window where they can view all charts and quotes.
The new industry research report from Technavio discusses in detail the key drivers and trends responsible for the growth of this market and its sub-segments.
“Innovative products like volatility index derivatives are gaining a lot of importance in the Europe and the US. The markets like equity, commodity, and currency would be bullish during the forecast period due to an increase in the number of trade volumes. Due to long-term interest rate options and single stock derivatives the revenue generation is expected to be more in the currency and commodity derivatives market during the forecast period,” says Navin Rajendra, Lead Analyst, ICT, Technavio Research.
The foreign exchange turnover was around USD 6 trillion at the end of 2014 which is an all-time high. Many investors have tried to diversify their portfolio into riskier assets like international equities and local currency emerging market bonds. Therefore, as investors are more focused on rebalancing their portfolios more frequently, it has led to the increasing need to trade in foreign exchange in large quantities. This trend is likely to boom the global derivatives market through 2019.
The leading vendors in the global derivatives market include ANZ, BNP Paribas, Deutsche Bank, Goldman Sachs, J.P. Morgan, Nomura, and Societe Generale. The top vendors in this market are focusing on the supervision of the financial systems and identifying cross-border systemic risks so that there can be transparency in the system to bring in potential investors to invest in the market over the forecast period. The top vendor offerings include protection from market spikes, short-term expirations, opportunities in flat markets, and regulated exchange solutions over the forecast period.
A more detailed analysis is available in the Technavio report, Global Derivatives Market 2015-2019.
We can customize reports by other regions and specific segments upon request.
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