Post by jeffolie on Sept 3, 2007 13:15:25 GMT -6
$536 trillion Derivatives traded
Derivative Trading Little Changed in Second Quarter, BIS Says
By Hamish Risk
Sept. 3 (Bloomberg) -- Derivatives traded on global exchanges rose less than 1 percent in the second quarter as demand for interest-rate contracts fell, the Bank for International Settlements said.
Global trading in futures and options contracts on lending rates, currencies and stock indexes increased to $536 trillion from $532 trillion in the previous quarter, the Basel, Switzerland-based BIS said today in its quarterly review. Trading grew 24 percent in the first quarter and declined in the fourth quarter of 2006.
``Activity in interest-rate derivatives declined slightly,'' BIS analyst Christian Upper wrote in the report.
Trading in interest-rate contracts fell 1 percent to $462 trillion in the quarter as the Federal Reserve kept its target interest rate for overnight loans between banks unchanged at 5.25 percent and the European Central Bank in Frankfurt raised its benchmark rate once to 4 percent from 3.75 percent.
The BIS calculates the amount of contracts bought and sold based on the underlying value of the currency, bonds or stocks linked to the contracts, or their notional value.
Trading in stock index futures and options rose 13 percent to a record $68 trillion in the second quarter, the BIS said. The gain was mainly from higher stock prices, which boosted the value of the contracts traded, the report said.
The Standard & Poor's 500 index rose 5.8 percent in the three months to June 30. The Dow Jones Stoxx 600 Index in Europe increased 4.8 percent in the same period.
Trading in currency futures and options increased 3 percent to $5.2 trillion, the report said.
A derivative is a financial obligation whose value is derived from interest rates, the outcome of specific events or the price of underlying assets such as debt, equities and commodities. Companies and investors use them to hedge against, or speculate on, price changes.
Derivatives include futures, which are agreements to buy or sell assets at a set date and price, and options, which are the right but not the obligation to do so.
The BIS, formed in 1930, monitors financial markets and regulates banks.
www.bloomberg.com/apps/news?pid=20601009&sid=aM00EGhUbll4&refer=bondheads
Derivative Trading Little Changed in Second Quarter, BIS Says
By Hamish Risk
Sept. 3 (Bloomberg) -- Derivatives traded on global exchanges rose less than 1 percent in the second quarter as demand for interest-rate contracts fell, the Bank for International Settlements said.
Global trading in futures and options contracts on lending rates, currencies and stock indexes increased to $536 trillion from $532 trillion in the previous quarter, the Basel, Switzerland-based BIS said today in its quarterly review. Trading grew 24 percent in the first quarter and declined in the fourth quarter of 2006.
``Activity in interest-rate derivatives declined slightly,'' BIS analyst Christian Upper wrote in the report.
Trading in interest-rate contracts fell 1 percent to $462 trillion in the quarter as the Federal Reserve kept its target interest rate for overnight loans between banks unchanged at 5.25 percent and the European Central Bank in Frankfurt raised its benchmark rate once to 4 percent from 3.75 percent.
The BIS calculates the amount of contracts bought and sold based on the underlying value of the currency, bonds or stocks linked to the contracts, or their notional value.
Trading in stock index futures and options rose 13 percent to a record $68 trillion in the second quarter, the BIS said. The gain was mainly from higher stock prices, which boosted the value of the contracts traded, the report said.
The Standard & Poor's 500 index rose 5.8 percent in the three months to June 30. The Dow Jones Stoxx 600 Index in Europe increased 4.8 percent in the same period.
Trading in currency futures and options increased 3 percent to $5.2 trillion, the report said.
A derivative is a financial obligation whose value is derived from interest rates, the outcome of specific events or the price of underlying assets such as debt, equities and commodities. Companies and investors use them to hedge against, or speculate on, price changes.
Derivatives include futures, which are agreements to buy or sell assets at a set date and price, and options, which are the right but not the obligation to do so.
The BIS, formed in 1930, monitors financial markets and regulates banks.
www.bloomberg.com/apps/news?pid=20601009&sid=aM00EGhUbll4&refer=bondheads