Latin American Capital Markets

DESIGNING A DERIVATIVES COMPLEMENT TO CASH MARKETS 337Table 11-1 I Annual Volume of Futures Contracts Traded, by Exchange,I 1999-2000 (continued)ExchangeWinnipeg Commodity ExchangeBudapest Commodity ExchangeTaiwan Futures ExchangeBudapest Stock ExchangeYokohama Commodity ExchangeMeff Renta FIJA, SpainFUTOP Clearing Centre, DenmarkOslo Stock ExchangeHelsinki Exchanges (formerly FinnishOptions Market Exchange)New Zealand ExchangeWiener BorseKuala Lumpur Options & FinancialFutures ExchangeCommodity and Monetary Exchangeof MalaysiaMercado aTermino de Buenos AiresAgricultural Futures MarketsAmsterdamMercado Italiano dei FuturesToronto Futures ExchangeTotalSource: Futures Industry Association (2001).2000contractvolume2,39 1 ,5652,174,4801,926,7891 ,402,3781,384,9951 ,094,9221 ,029,3691 ,024,266874,862794,502658,877366,942353,434179,54796,2421,9660952,604,3 1 31999contractvolume2,086,9091 ,588,0471,077,6721,814,078895,7053,639,6481 , 1 35,288875,5301,101,616825,546802,582436,678416,775171,7081 1 1 ,886209,610382,149781,797,938Change in2000304,656586,433849,117(411,700)489,290(2,544,726)(105,919)148,736(226,754)(3 1 ,044)(143,705)(69,736)(63,341)7,839(15,644)(207,644)(382,149)170,806,375Percentagechange in200014.6036.9378.79(22.69)54.63(69.92)(9.33)16.99(20.58)(3.76)(17.91)(15.97)(15.20)4.57(13.98)(99.06)(100.00)21.85engaging in specific capital market development projects or otherwise assisting countriesin addressing their risk management needs.This chapter examines the requirements for identifying products and conditionsthat will support the development of a traditionally structured financial derivativesmarket in a developing country 1 Although the discussion is of general applicability,where possible, the examples are drawn with Latin American jurisdictions in1All derivatives, regardless of whether the underlying reference price is based on a commodity or a financial instrument,are financial instruments, and many design issues are generic. Most examples in this discussion, however aredrawn from derivatives based on financial assets.Copyright © by the Inter-American Development Bank. All rights reserved.For more information visit our website: www.iadb.org/pub