ESMA, yesterday, published its third Annual Statistical Report analysing the EU derivatives markets. It provided a comprehensive market-level view of the EU’s derivatives markets in 2019, which had a total size of €681tn gross notional amount outstanding, a decrease of 5% on 2018. The Report is based on data submitted under the European Markets and Infrastructure Regulation (EMIR).

Highlight Summary

The reduction in the total market size during 2019 was driven mainly by currency and equity derivatives, which fell by 15% and 35% respectively. Interest rate derivatives grew in the first half of the year, but later fell back and finished unchanged over the year;

OTC trading still accounts for the majority of the trading with the share growing to 92% from 90%. The total share executed on trading venues (which includes some OTC trading) fell from 17% to 15%, driven by a fall in exchanged-traded derivatives;

Exposures continue to be highly concentrated in relatively few counterparties, particularly investment firms, credit institutions and CCPs. In all markets, a few large counterparties are widely connected to other market participants; and

The UK remains the dominant market for transactions within the EEA as well as with third countries. There were some signs of UK-US exposures growing slightly, while UKEEA exposures fell.

See full ESMA press release here

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