The decade from 1999 to 2009 has been the most remarkable in the derivatives market’s history, with exceptionally fast growth in many markets and product lines. That was brought to a sharp halt in 2008 by the financial slump. But when the crisis eases, can the derivatives market go back to the steep upward path of the past 10 years? Colin Packham investigates.The exchange-traded derivatives market has enjoyed a decade of unprecedented growth, until the past 12 months – a time disfigured by the worst financial crisis since the Great Depression.
As the graphs on these pages show, the acceleration in European and US futures and options trading has been so fast that common sense suggests it cannot continue at the same rate forever.
Was the financial crisis of 2008 an inflection point, after which the market will grow more slowly?
Market participants are reluctant to engage in crystal ball-gazing....