Liquidnet: Listed derivatives volumes grew nearly 46% globally in 2021

Dan Barnes
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A new report published by market operator Liquidnet has identified a 45.8% growth in listed derivatives trading volumes in 2021 over the previous year.

The analysis, conducted by the listed derivatives team at Liquidnet, identifies key themes in the rates derivatives markets around the world, and also looks at the major contracts traded.

In the US these included the base effects on yields and volume from the pandemic; handling the inflation trade at a time of asset purchase tapering; and the need to manage “spotty auctions” with futures, notably the CME’s Ultra 10-Year Note.
Eurozone rates derivatives had their best growth since 2010 with Eurex volumes up 13.6% on 2020.

“Data back to 2000 serves as a useful reminder of the extent to which European fixed income volumes have underperformed the US in recent times,” the team wrote. “In 2000, CME USTs represented half the volume of Eurex EGBs. In 2021, they traded double the volume. Eurex likely welcomed the outturn for 2021, but probably kept the champagne on ice for now.”

In Asia Pacific, the hesitancy of Reserve Bank Of Australia to reduce rates by 10bps until November 2020 led to Aussie 90-Day Bill volumes being their lowest since December 1999, they observed, and volume for the year at 16.1 million contracts was below 2020, 2019 and 2018. Volumes also fell for the Aussie 3-Yr and 10-Yr contracts.

Japanese government bond futures were up 13.1% on 2020 to 7.5 million contracts, Korean 3-Yr volumes were up 25% to 32.5 million contracts for the year.

©Markets Media Europe, 2021
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