Euro, dollar-denominated ETDs boomed in Q1
But diverging demand for futures and options points to uncertainty on Fed and ECB timings
Notionals for euro- and dollar-denominated interest rate exchange-traded derivatives (ETDs) soared 16% year on year in the first quarter, Bank for International Settlements data shows. The latest figures paint a very different picture on the adoption of futures and options between the two currencies, hinting at diverging expectations around the timings of rate tightening on the two sides of the Atlantic.
Notionals for dollar-denominated ETDs hit a $66.6 trillion two-year high at end-March – a
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