Securities Exchanges - Example 1

December 8, 2023

Options contracts from all of the exchanges must be cleared through the OCC. Over the 50 years from 1973 to 2023 (9-month run-rate) the annual cleared-contract volumes rose from 1 million to 14 million, an annualized expansion rate of almost 21%. Even the last decade’s growth rate was 12%.
Examples of derivatives abound and are increasing. Nearly every significant asset is linked to the derivatives market in some way, and the aggregate volumes and offerings continue to grow, as a direct reflection of constantly changing economics-based market demand.
In contrast, investors seeking diversification are typically satisfied with, or limited to, the most popular stock and bond indexes available.

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