Exchanges have not won a big- ger share of derivatives trading,
according to the latest BIS Central
Bank Triennial Survey of foreign
exchange and over-the-counter
(OTC) derivatives market activity.
Since 2009, the trading of derivatives on exchanges has shown no
trend, whereas their OTC trading
has trended upwards.
The daily average turnover of foreign exchange and
interest rate derivatives traded
worldwide – on exchanges and
OTC – rose from $10.5 trillion
in April 2013 to $11.3 trillion in
April 2016. The exchange-traded
share remained roughly 46%.
The Triennial Survey is the
most comprehensive source of S h u
information on the size and
structure of OTC markets.
Close to 1,300 financial institutions located in 52 countries
participated in the latest survey,
which was conducted in April
2016. When the results are combined with the BIS statistics on
they provide a global (albeit
With exchanges managing to secure a greater share of derivatives trading,
according to new figures, Robert Neil McCauley and Philip Wooldridge ask what
the implications are for the market.