Global Futures & Options Volume Hits Record 137 Bn Contracts In 2023; Double-digit increases in volume and open interest in most commodity markets
FinTech BizNews Service
Mumbai, January 19, 2024: Washington, DC based FIA today released statistics on the number of futures and options traded on exchanges worldwide in 2023. The total volume of trading reached 137.3 billion contracts in 2023, up 64% from the previous year. This was the sixth consecutive year of record-setting trading activity in the global listed derivatives markets.
Trading volume in most parts of the world grew only slightly compared to the previous year. The exception was India, which saw an extraordinarily rapid growth in the trading of equity index options. The number of equity index options traded on Indian exchanges reached 84.3 billion contracts in 2023, up 153% from 2022. That helped push the total number of options traded worldwide to 108.2 billion in 2023, up 98% from the previous year.
Futures Industry Association (FIA) is the leading global trade organization for the futures, options and centrally cleared derivatives markets, with offices in Brussels, London, Singapore and Washington, D.C. FIA’s membership includes clearing firms, exchanges, clearinghouses, trading firms and commodities specialists from about 50 countries as well as technology vendors, law firms and other professional service providers.
Total futures volume was 29.1 billion contracts, roughly the same as the previous year. Increases in futures trading in China and the U.K. offset declines in Brazil and Turkey.
Open interest, which measures the number of outstanding contracts at a point in time, stood at a record level of 1.25 billion contracts at year-end, up 15% at year-end 2022. Open interest in options rose 18% to 955 million contracts, and open interest in futures rose 8% to 298 million contracts.
FIA's statistics on volume and open interest are collected from 89 exchanges and clearinghouses operated by 54 companies in 34 countries. The statistics are based on the number of contracts traded and/or cleared on these exchanges and clearinghouses and are adjusted to avoid double counting.
FIA will hold a webinar on 31 January to provide a more detailed look at the trends in futures and options trading.
Breakdown of Volume and Open Interest by Region
The Asia-Pacific region had the largest increase in trading in 2023. Total volume in that region reached 103.5 billion contracts, up 104% from the previous year, with India being the most important driver of that growth.
North America, the second largest region in terms of trading volume, had 17.9 billion futures and options contracts traded in 2020, up 6.2% from the previous year.
Latin America was the third largest, with total trading volume reaching 8.6 billion contracts, roughly unchanged from the previous year.
European volume rose 2.6% to 4.9 billion contracts, while volume on exchanges in the Middle East and Africa fell almost 20% to 2.4 billion contracts.
Turning to open interest, North America led the way, with 648 million futures and options outstanding at the end of the year, up 41 million contracts or 6.8% from the end of 2022. North America accounted for 52% of the total open interest worldwide.
Open interest in Europe stood at 242 million contracts at year-end, up 18% from December 2020, and equivalent to 19% of global open interest.
Latin America had the largest increase in open interest in both absolute and relative terms. Total open interest at exchanges in the region reached 206 million contracts at year-end, up 75 million contracts or 57% from the end of 2022.
Asia-Pacific open interest stood at 123 million contracts at year-end, up 18 million contracts or 17% from the previous year. Although the Asia-Pacific region accounted for the majority of the global trading volume, APAC exchanges accounted for only 10% of global open interest.
Breakdown by Asset Class
Equity-related derivatives accounted for the overwhelming majority of the increase in trading activity in 2023. The total number of futures and options based on equity indices, which includes contracts based on exchange-traded funds, reached 99.9 billion contracts in 2023, an increase of 105% from 2022. Single-stock futures and options volume declined 4.8% to 12.6 billion contracts.
Currency futures and options, the second largest asset class by volume, dropped 8% to 7.1 billion contracts. That was mainly due to a 21% decline in the trading of currency futures.
Trading of interest rate futures and options jumped 935 million contracts or 18% to an annual total of 6.1 billion contracts. Within that asset class, trading of futures rose 611 million contracts or 14% to 4.9 billion contracts, while trading of options rose 324 million contracts or 39% to 1.15 billion contracts.
In the commodity sector, agricultural futures and options trading volume jumped 31% to 3.2 billion contracts. Energy futures and options trading volume jumped 34% to
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