Volatility in the wake of concerns over trade and global economy fuel rise in revenues across the global derivatives market, Acuiti Insight Report finds
London — 19 September
Revenues across the global derivatives market surged last month in the wake of the US-China trade war and the ongoing political uncertainty in the UK, the latest Acuiti Derivatives Insight Report has found.
The revenue rises were driven by volatility and high trading volumes in the interest rate, equities and currency markets.
48% of respondents to the latest Acuiti survey reported higher month-on-month revenues and 45% reported higher year-on-year revenues, the highest reading since the report launched in April.
Each month, Acuiti polls its global network of senior executives in the derivatives market to compile the Derivatives Insight Report, a benchmark of industry performance and executive sentiment.
The September report found that industry outlook also rose substantially in August with 63% of respondents predicting improved revenues over the next three months, the highest reading to date.
“August is usually a quiet month for traders but this year the market saw periods of acute volatility which resulted in significantly higher volumes across global derivatives markets,” said Will Mitting, managing director of Acuiti.
“With the looming Brexit deadline, increased tensions in the Middle East and the US-China trade war showing little sign of abating, it looks like the recent volatility is here to stay in the short to medium term.”
Overall, 32% of respondents reported somewhat higher month-on-month revenue and 16% reported significantly higher revenues, up from 17% and 9% respectively in the August report.
Year-on-year revenues were also higher month with 31% reporting somewhat higher and 14% reporting significantly higher revenues compared with 20% and 18% last month.
The UK was the strongest region for growing revenues with 56% of respondents reporting higher month-on-month revenues. The EU (excl UK) followed with 53% reporting higher revenues and North America was in third with 51%.
Brokers reported the strongest performance with 60% reporting higher month-on-month revenues. Banks and Non-bank FCMs also performed well with 53% and 41% of respondents from these firms reporting higher revenues.
Acuiti was launched in February 2019 and to date over 550 senior executives in the derivatives market have joined the platform.
To apply to join the Acuiti network and get the opportunity to take part in and receive next month’s Acuiti Derivatives Insight Report, visit acuiti.io
For more information, contact Will Mitting
Tel.: +44 (0) 203 998 9190
Acuiti is a new management intelligence platform designed to provide senior executives with unparalleled insight into business operations and industry-wide performance. Acuiti helps identify market trends, enhance decision-making and benchmark company performance. The platform anonymises and aggregates information from its exclusive network of senior industry figures to provide insightful in-depth analysis.