Analysis of Malaysia and China Financial Derivatives from 2010 to 2011

Year Futures Options Futures and Options

Contract Volume Open Interest Contract Volume Open Interest Contract Volume Open Interest GDP (RMB Billion)

2000 4521926 61955 4738644 473020 9260570 534975 8946.8

2001 5830672 95262 4718880 261608 10549552 356870 10965.5

2002 6228037 65235 4801367 438472 11029404 503707 12033.3

2003 8174652 106023 6371561 626695 14546213 732718 13582.3

2004 11884152 158839 7745540 770374 19629692 929213 15987.8

2005 13433386 139692 12089621 1247567 25523007 1387259 18386.8

2006 19863299 191054 23042616 2837795 42905915 3028849 21087.1

2007 32723598 214842 55262088 5566056 87985686 5780898 24661.9

2008 44721743 184551 60284993 4121563 105006736 4306114 31404.5

2009 43483237 152597 55055021 4151418 98538258 4304015 34506.9

2010 43006523 207050 73047854 5679352 116054377 5886402 40201.2

2011 50741995 249391 89751477 5687407 140493472 5936798 n/a

From the chart 1.1 Futures and Option and 1.2 GDP of China, we can indicate that the growth of GDP has substantial indicate the upwards of futures and option volume. Especially during year 2008, the global economic crisis began to reduce China's growth rate, which is shown in graph 1.2, the slope become flatter during 2007 to 2009, indicate a slower growth rate of GDP, whereby the growth rate fall from 11.4 at 2007 to 9.6 at 2008. This trend has shown a big influence in the volume traded in financial derivatives (futures and options), whereby from graft 1.1. there is a flatter then latter downward slope from year 2007 to 2009.

From the pie chart, we can see the market for financial derivatives for year 2000 and 2011. The market overall has become bigger, as compared to Malaysia pie. However, there’s a swift between the preferences of the trader, which can be shown by the increasing volume of orange colour part, which is options.

Year FKLI FCPO FKB3 FMG3 FMG5 FPKO SSF FMGA OKLI Total Exchange GDP

2005 n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a 449250