The European Securities and Markets Authority (ESMA) has published a report on the changes that took place in the derivatives market in 2021 and 2022. It is an important document for all NCAs and market participants, as it aims to explain the mechanisms that drive derivatives markets in the EU.
The ESMA report shows that the EU derivatives market grew 29% over 2021 and 2022. Growth was partly driven by intragroup positions which increased by 91%. The outstanding notional amounts reaching EUR 314tn by the end of 2022. The report reveals changes in the shares of asset classes:
- Interest rate derivatives – 78%;
- Currencies – 14%;
- Equity – 5%;
- Credit – 2%;
- Commodities – 1%.
The percentage of outstanding derivatives cleared continued to grow from 71% to 77%, and for credit derivatives from 41% to 45%.
The entire report is available here -
https://www.esma.europa.eu/sites/default/files/2023-12/ESMA50-524821-2930_EU_Derivatives_Markets_2023.pdf
