Hong Kong Exchange and Clearing Limited (HKEx) has announced its derivatives trading has grown largely due to overseas investors and exchange participants (EPs).
According to HKEx’s Derivatives market transaction survey, derivatives trading by overseas investors and EPs had compound annual growth rates (CAGR) of 22% and 21% respectively in the past decade.
Total turnover for the products covered in the 2014/15 survey was 175 million contracts, an increase of 39% compared to 126 million in 2013/14. Over the past decade, derivatives market trading had an average CAGR of 20% with stock options being the dominant product representing 55% of total market turnover in 2014/15.
Among overseas investors, those from the US made the largest contribution with 32% followed by investors from the UK and continental Europe with 26% and 21% respectively. Over 90% of all such trading came for institutional investors.
Other key findings revealed that overseas investors contributed 28% of total market turnover with local investors contributed 21%.