By Sudip Kar-Gupta
LONDON, Nov 14 (Reuters) - The increasing use of MSCI futures products is increasing trading flows in the $630 trillion global derivatives industry, Deutsche Bank said on Thursday, in a trend which may boost revenues for exchanges and buoy a sector facing regulatory pressure.
Simon Carter, head of Deutsche Bank's European equity derivatives strategy, told an investor webcast that increasing numbers of clients were using futures from the MSCI index compiler after MSCI listed them on exchanges earlier this year.
Previously, institutional investors and fund managers who wanted to use such derivatives on an MSCI index had to use less transparent over-the-counter (OTC) products, rather than trade them on mainstream exchanges.
'Growth in this area is set to continue,' said Carter.
'The listing of futures and options really gives visibility to investors who wouldn't have considered using them in the past,' he added.
In Europe, MSCI futures and options can be traded on Deutsche Boerse's Eurex exchange, and Eurex said on its website that trading volumes in those products had risen since their launch this year to more than 170,000 contracts in October.
Nevertheless, in spite of growth in this particular part of the derivatives sector, regulators around the world remain keen to impose tougher rules on the global derivatives industry in order to prevent a repeat of the problems after Wall Street bank Lehman Brothers collapsed in 2008.
Lehman's collapse hit markets and derivatives dealers due to confusion over who was exposed to Lehman's derivatives holdings.
(editing by Ron Askew) Keywords: EUROPE STOCKS/DERIVATIVES
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