ESMA published an article—EU derivatives markets: a first-time overview—that was included in the latest version of its Report on Trends, Risks and Vulnerabilities. In this article, ESMA produced, for the first time, data on the size of the interest rate, credit, equity, commodity, and foreign exchange derivatives markets in the EU, based on the weekly data it receives from trade repositories.
This article includes information on the size of the different derivative markets, both in terms of the number of transactions and gross notional amount outstanding. Moreover, it also includes measures of market concentration. The article shows the shares of derivative transactions that occur within the European economic area (EEA), as opposed to cross-border transactions with non-EEA counterparts, as well as the breakdown between over-the-counter and exchange-traded derivatives. The work is based on the combined data received from all six trade repositories in the EU, who are supervised by ESMA, under the reporting requirements of the European Markets Infrastructure Regulation (EMIR). The data provided by trade repositories is an extensive source of information about derivatives, including bank and non-bank entities.
According to ESMA’s initial analysis, which was performed on the data available on February 24, 2017, the size of the EU’s derivatives markets across all asset classes was estimated as having a notional value of about EUR 453 trillion and nearly 33 million transactions. ESMA continues its substantial work in this area, with the aim to enhance data quality and improve statistical analysis. These are the key priorities for ESMA in the coming years.
- EU Derivatives Markets: A First-Time Overview (PDF)
- Report on Trends, Risks, and Vulnerabilities No. 2, 2017
Keywords: Europe, EU, Securities, EMIR, Trade Repository, OTC Derivatives, Market Size, ESMA
Previous ArticlePRA Updated Implementation Timeline for Capital+ Reporting
EBA published a report analyzing the impact of the unwind mechanism of the liquidity coverage ratio (LCR) for a sample of European banks over a three-year period, from the end of 2016 to the first quarter of 2020.
In response to questions from a member of the European Parliament, the ECB President Christine Lagarde issued a letter clarifying the possibility of amending the AnaCredit Regulation and making targeted longer-term refinancing operations (TLTROs) dependent on the climate-related impact of bank loans.
IASB started the post-implementation review of the classification and measurement requirements in IFRS 9 on financial instruments and added the review as a project to its work plan.
FSB published a report that examines progress in implementing policy measures to enhance the resolvability of systemically important financial institutions.
EBA published a report on the benchmarking of national loan enforcement frameworks across 27 EU member states, in response to the call for advice from EC.
FSB published a letter from its Chair Randal K. Quarles, along with two reports exploring various aspects of the market turmoil resulting from the COVID-19 event.
RBNZ launched a consultation on the details for implementing the final Capital Review decisions announced in December 2019.
The Trustees of the IFRS Foundation, which are responsible for the governance and oversight of IASB, have announced the appointment of Dr. Andreas Barckow as the IASB Chair, effective July 2021.
HKMA issued a letter to consult the banking industry on a full set of proposed draft amendments to the Banking (Capital) Rules for implementing the Basel standard on capital requirements for banks’ equity investments in funds in Hong Kong.
ESRB published an opinion assessing the decision of Swedish Financial Supervisory Authority (FSA) to extend the application period of a stricter measure for residential mortgage lending, in accordance with Article 458 of the Capital Requirements Regulation (CRR).