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27th November 2019 | Article

Confidence falls sharply across global derivatives market

Significant fall in the Acuiti Derivatives Sentiment Index as revenue growth slows for the second month.

London — 21 November

The outlook for growth among senior executives in the derivatives market slumped last month as volatility and volumes subsided across global markets.

Just 39% of respondents to the latest monthly Acuiti survey said they expected revenues to increase over the next three months, down from 53% in October and the lowest reading since the survey launched in April.

The gloomier outlook is particularly evident in North America and the UK, where just 30% and 32% respectively predicted an increase over the next three months.

In September the Acuiti Derivatives Sentiment Index stood at 65% of respondents predicted growing revenues.

This month’s reading is the first in which less than 50% of respondents predicted quarterly growth.

Each month Acuiti polls hundreds of senior executives across the global derivatives market on business performance and outlook, the results are published in the monthly Acuiti Derivatives Insight Report.

The fall in sentiment comes after the second consecutive month of revenue declines. 31% of respondents reported higher month-on-month revenues in October, down from 39% last month and 45% in September.

Banks faced a particularly difficult month last month as they reported their second worst performance to date with only 6% reporting higher revenues as client demand declined and volumes fell.

Non-bank FCMs bucked the trend with 40% reporting month-on-month revenue increases driven by a strong performance in North America.

“The significant fall in sentiment reported in this month’s Acuiti Derivatives Sentiment Index is a major concern for the industry and comes during what has overwise been a strong year for most participants in the global market,” said William Mitting, founder and managing director of Acuiti.

“With the return of Quantitative Easing in Europe, increased expectations of interest rate cuts and the ongoing slowdown in global growth, there are fears that markets are returning to a period in which movement is dominated by Central Bank policy.”

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

 

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For more information, contact Will Mitting

Tel.: +44 (0) 203 998 9190

Email: willmitting@acuiti.io

 

About Acuiti

Acuiti is a 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.