EUROPEAN UNION: ESMA Publishes Overview of the Size of its Derivatives Market

Thursday October 19 2017

The European Securities and Markets Authority (ESMA) has produced, for the first time, data on the size of the interest rate, credit, equity, commodity and foreign exchange derivatives markets in the European Union’s (EU).

The overview has been developed due to ESMA consolidating the weekly data receives from trade repositories (TRs). The data provided by TRs is an extensive source of information about derivatives, including bank and non-bank entities.

The overview outlines and defines which forms of derivatives are the largest on the market in terms of Market Size and the number of transactions executed in each.

In terms of Market Size the overview concludes that Interest rate derivatives constitute the largest market (EUR 282tn), whereas in terms of transactions executed, the equity derivatives market is the largest representing 48% of the number of transactions reported.

The overview also highlights how OTC transactions are predominant on FX, credit and interest rate derivatives markets, whereas there is a slight majority of ETD transactions on equity and commodity derivatives markets.

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