Derivatives & commodities brokerage market comprises establishments primarily engaged in acting as brokers in buying or selling various derivative contracts such as futures and options on underlying financial assets and commodities on a commission or transaction fee basis.
The global derivatives & commodities brokerage market was valued at $41.7 billion in 2017. North America was the largest geographic region accounting for $27.3 billion or 65.6% of the global market. The USA was the largest country accounting for $26.5 billion or 63.6% of the global derivatives & commodities brokerage market.
Global brokerage firms are introducing trading on cryptocurrency future focusing more on bitcoin. Cryptocurrency is a digital asset which uses encryption techniques to secure its transactions, to control and verify the creation of additional units and transfer of assets. After the US regulators CBOE and CME’s approval for introducing bitcoin futures, the volume of cryptocurrencies future contracts are increasing when compared with the established future contracts. Additionally, companies such as Interactive Brokers allowed its clients to trade bitcoin futures on the CBOE Futures Exchange from December 2017. Apart from this, institutional brokers such as Goldman Sachs also started offering access to bitcoin futures trading but only for certain selected customer segments.
The companies covered are Morgan Stanley, Citi Bank, Goldman Sachs, Nomura, and Wells Fargo.
The countries covered are USA, China, Germany, Brazil, Japan, UK, Spain, Russia, France, Australia, Italy, India and rest of the world.
The derivatives and commodities brokerage market is segmented into Derivatives Brokerage, and Commodities Brokerage.
Derivatives Brokerage comprises establishments primarily engaged in acting as principals (i.e., investors who buy or sell for their own account) in buying or selling spot or futures commodity contracts or options, such as precious metals, foreign currency, oil, or agricultural products, generally on a spread basis.
Commodities Brokerage comprises establishments primarily engaged in acting as agents (i.e., brokers) in buying or selling spot or future commodity contracts or options on a commission or transaction fee basis.