The UK’s share of turnover in the over the counter (OTC) market rose from 36% to 43% between April 2001 and April 2004.
The growth in market share has taken place during a period in which average daily turnover in OTC derivatives worldwide doubled from $764 billion to $1508 billion. Interest rate instruments account for three quarters of global OTC derivatives trading and are dominated by the euro and the US dollar with 45% and 34% respectively. The euro’s share of UK turnover in interest rate derivatives is even higher at 58%, according to IFSL’s Derivatives report.
The nominal value of annual turnover in financial derivatives exchanges more than doubled from $384 trillion to $874 trillion between 2000 and 2003. Four exchanges accounted for nearly 90% of turnover by value. The Chicago Mercantile Exchange (CME) was the largest in 2003 followed by Euronext, liffe, Eurex and the Chicago Board of Trade (CBOT).