Derivatives in Emerging Markets

Mihaljek, Dubravko; Packer , Frank

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Derivatives in Emerging Markets

BIS Quarterly Review, December 2010

16 Pages Posted: 22 Aug 2012

See all articles by Dubravko Mihaljek

Dubravko Mihaljek

Croatian National Bank; Institute of Public Finance, Zagreb

Frank Packer

Bank for International Settlements (BIS)

Date Written: December 2010

Abstract

Turnover of derivatives has grown more rapidly in emerging markets than in developed countries. Foreign exchange derivatives are the most commonly traded of all risk categories, with increasingly frequent turnover in emerging market currencies and a growing share of cross-border transactions. As the global reach of the financial centres in emerging Asia has expanded, the offshore trading of many emerging market currency derivatives has risen as well. Growth in derivatives turnover is positively related to trade, financial activity and per capita income.

JEL Classification: F31, G15, G20, P45

Suggested Citation: Suggested Citation

Mihaljek, Dubravko and Packer, Frank, Derivatives in Emerging Markets (December 2010). BIS Quarterly Review, December 2010, Available at SSRN: https://ssrn.com/abstract=1727412