Over half of new derivative contracts launched worldwide in 2011 failed to trade, FOW Intelligence study reveals.

London - 9 March 2012

FOW Intelligence, the online news and data specialist of the FOW Group and part of Euromoney Institutional Investor, has released a definitive reference guide to new exchange traded futures and options contracts launched during 2011.

The “Derivative Contracts Performance Review 2011” records new exchange traded derivative contracts launched during 2011, drawn from FOW Intelligence’s fully searchable online database of global futures and options.

By summarising these findings by trading volume from the day the contract launched up to New Year’s Day 2012, the report highlights those which gained traction in the market very quickly, generating high volumes as a result, through to those that did not generate any volume at all.

“Of the 584 new contracts launched in 2011, one in every two failed to trade before the end of year,” said Nicola Tavendale, FOW Intelligence news editor.

“Every contract launch represents a significant investment by the exchange in terms of time, money and to a certain extent, reputation. This report explores possible reasons why some contracts are slow to attract trading, or fail altogether only to be delisted by its exchange.”

This report explores the findings by geographic region of launch, creating league tables based on trading volume for the new contract launches worldwide and also for the United States, Europe and the rest of the world beyond these two continents.

FOWi also interviewed the heads and product developers of the exchanges who were the driving force behind these new launches.

Their thoughts on what makes a successful contract launch provide an invaluable insight into the importance of new instruments and how to create successful products in the future.

Full lists of the new contracts examined in the findings of this report are included in the appendix tables, broken down by geographic region and by asset class.

In the body of the report there are additional top performing contract tables based on volume from launch, including 2011’s most successful 25 new exchange traded derivative contract launches in the world.

The “Derivative Contracts Performance Review 2011” is the first in a series of specialist reports to be released by FOW Intelligence this year.

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