Global Over-the-Counter Derivatives Market Size study & Forecast, by Type (Exchange-Traded Derivatives, Semi-annual OTC derivatives, and Triennial OTC derivatives), and Application (Mechanics & Valuation, Hedging, Speculation, and Arbitrage) and Regional Analysis, 2022-2029
Global Over-the-Counter Derivatives Market is valued at approximately USD XX billion in 2021 and is anticipated to grow with a healthy growth rate of more than XX% over the forecast period 2022-2029. Over the Counter (OTC) Derivatives are financial contracts that do not trade on the stock exchange rather they are traded in the OTC marketplace via a broker-dealer network. These OTC derivatives can be options, forwards, futures or other agreements and their value is based on that of an underlying asset such as stock, commodity, bonds and so on. Derivative trading offers protection against the risks associated with the price movements of the underlying assets. The traders dealing with derivatives securities are known as hedgers. There are different types of OTC derivatives are there including interest rate derivatives, commodity, and equity derivatives, forex, credit, and fixed-income derivatives among others. The increasing expansion of the foreign exchange market and growing digitization in the financial sector as well as strategic initiatives from leading market players are key factors accelerating the market growth.
The increasing expansion of the foreign exchange market is contributing to the growth of the Global Over-the-Counter Derivatives Market. For instance, according to a survey conducted by the Bank of England, the UK in October 2022 – in April 2019, the average daily turnover in the UK foreign exchange market was valued at USD 3576 billion, and the market further increased to USD 3755 billion in April 2022. In addition, during April 2022, the average daily turnover of OTC interest rate derivatives was valued at USD 2626 billion. Also, increasing the use of trading platforms for investments and the rise in participation of security exchanges would create a lucrative growth prospectus for the market over the forecast period. However, the lack of transparency & legal risk in OTC derivatives stifles market growth throughout the forecast period of 2022-2029.
The key regions considered for the Global Over-the-Counter Derivatives Market study includes Asia Pacific, North America, Europe, Latin America, and Rest of the World. North America dominated the market in terms of revenue, owing to the presence of leading market players and the increasing expansion of the foreign exchange market in the region. Whereas Asia Pacific is expected to grow with the highest CAGR during the forecast period, owing to factors such as rising trade in over-the-counter trading in commodities and stocks coupled with the growing emergence of digital trading platforms in the region.
Major market player included in this report are:
UBS Group AG
Bank of America Corporation
Credit Suisse Group AG
JPMorgan Chase & Co.
Morgan Stanley
Goldman Sachs Group, Inc.
DBS Bank Limited
Deutsche Bank AG
Citigroup Inc.
Wells Fargo & Company
Recent Developments in the Market:
In February 2022, Crypto exchange CrossTower announced the launch of personalised Over the Counter (OTC) services for Indian high-net-worth individuals (HNI) and institutional investors. This new launch from CrossTower would enable HNIs and institutional investors to trade in crypto assets, across multiple crypto currencies.
Global Over-the-Counter Derivatives Market Report Scope:
Historical Data 2019-2020-2021
Base Year for Estimation 2021
Forecast period 2022-2029
Report Coverage Revenue forecast, Company Ranking, Competitive Landscape, Growth factors, and Trends
Segments Covered Type, Application, Region
Regional Scope North America; Europe; Asia Pacific; Latin America; Rest of the World
Customization Scope Free report customization (equivalent up to 8 analyst’s working hours) with purchase. Addition or alteration to country, regional & segment scope*
The objective of the study is to define market sizes of different segments & countries in recent years and to forecast the values to the coming years. The report is designed to incorporate both qualitative and quantitative aspects of the industry within countries involved in the study.
The report also caters detailed information about the crucial aspects such as driving factors & challenges which will define the future growth of the market. Additionally, it also incorporates potential opportunities in micro markets for stakeholders to invest along with the detailed analysis of competitive landscape and product offerings of key players.
The detailed segments and sub-segment of the market are explained below:
By Type
Exchange-traded derivatives
Semi-annual OTC derivatives
Triennial OTC derivatives
By Application
Mechanics & valuation
Hedging
Speculation
Arbitrage
By Region:
North America
U.S.
Canada
Europe
UK
Germany
France
Spain
Italy
ROE
Asia Pacific
China
India
Japan
Australia
South Korea
RoAPAC
Latin America
Brazil
Mexico
RoLA
Rest of the World
Companies Mentioned
UBS Group AG
Bank of America Corporation
Credit Suisse Group AG
JPMorgan Chase & Co.
Morgan Stanley
Goldman Sachs Group, Inc.
DBS Bank Limited
Deutsche Bank AG
Citigroup Inc.
Wells Fargo & Company
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