GERMANYA EUROMONEY SURVEY - June 1996With the aftermath of the 1994 bond market crash largely digested, the German derivatives market presents itself today in a healthy shape. Owing to impressive growth in volume outstanding in virtually all product areas and the persistent launch of innovative products, it has become increasingly liquid and efficient. Leaving the leveraged adventures behind, the German market participant of today has significantly altered his perception of risk and is aware of the need for sophisticated risk management systems. Based on the undeniable fact that the appropriate application of derivative products adds value, be it in the scope of hedging or yield enhancement, sensible product innovation and improved know-how within the financial community will foster the further deepening and broadening of derivatives markets in Germany.Exchange-Traded ProductsOver the course of the last few months volumes of interest rate-products at the German derivatives exchange DTB increased significantly, fuelled by product innovation and periods of pronounced bond market weakness. Due to an upsurge in hedging activity BOBL futures repeatedly managed to breach the 100,000 contract level for the first time since their launch, with the same high volumes traded in BUND futures. |