The Global Market for Exchange-Traded Derivatives: 21st Century Trends, Innovation and Failure

Forthcoming, Applied Finance Letters

25 Pages Posted: 28 Mar 2022

See all articles by Ekaterina E. Emm

Ekaterina E. Emm

Seattle University

Gerald D. Gay

Georgia State University - Department of Finance

Han Ma

Shanghai University of Economics and Finance

Honglin Ren

Renmin University of China - School of Business

Date Written: December 2, 2021

Abstract

Utilizing a comprehensive database spanning 110 exchanges in five geographic regions, we examine trends in trade activity and contract innovation of exchange-traded futures and options over the period 2002–2021. We find that global volume has experienced a ten-fold increase driven by significant increases at Asian and North American exchanges, and primarily in the equity, interest rate and currency asset classes. New contract innovation has been greatest in North America and in the energy and equity asset classes. Further, volume and open interest attributable to new contract innovation have now surpassed those of legacy contracts. Turnover showed a significant increase driven largely by trade activity in Asian markets. Finally, new contract failure rates have been highest at North American exchanges as well as in the interest rate and energy asset classes.

Keywords: Futures, options, derivatives, volume, open interest

JEL Classification: G12, G13, G15, G23, L11

Suggested Citation

Emm, Ekaterina E. and Gay, Gerald D. and Ma, Han and Ren, Honglin, The Global Market for Exchange-Traded Derivatives: 21st Century Trends, Innovation and Failure (December 2, 2021). Forthcoming, Applied Finance Letters, Available at SSRN: https://ssrn.com/abstract=4049407 or http://dx.doi.org/10.2139/ssrn.4049407

Ekaterina E. Emm

Seattle University

900 Broadway
Seattle, WA 98122
United States

Gerald D. Gay

Georgia State University - Department of Finance ( email )

Robinson College of Business
Atlanta, GA 30303-3083
United States
404-413-7321 (Phone)
404-413-7312 (Fax)

Han Ma

Shanghai University of Economics and Finance ( email )

777 Guoding Road
Shanghai, AK Shanghai 200433
China

Honglin Ren (Contact Author)

Renmin University of China - School of Business ( email )

Beijing
China

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