Derivatives Market Trends and Tools for Managing Volatility and Valuation Risk

Join our Derivatives and Dividends Experts in discussing "Derivatives Market Trends and Tools for Managing Volatility and Valuation Risk." Together, we will explore:

• Recent market movements and trends to watch in 2025
• Popular derivative instruments and strategies
• Tools for navigating complex markets
  

As we move into 2025, global markets face uncertainties, challenges, and geopolitical tensions. We are yet to see how US policies under the Trump administration will impact global markets. Additionally, EMEA and APAC face their share of political and economic challenges, which will impact central bank policy, with inflation continuing to be a major focus. Among the topics we will touch on are growth in equities, with the S&P 500 index posting gains of 27% in 2024 and continued growth and volatility expected in 2025, as well as the dividend forecasting landscape. Dividends are an important source of returns for equity investors, and they are projected to reach $2.3 trillion in 2025.

The latest data from the Bank for International Settlements (BIS) and our trade data services show that over-the-counter (OTC) derivatives in FX, equity, and commodity derivatives grew year-over-year in terms of notionals, with rates notionals remaining relatively flat year-over-year. We will delve further into which derivatives have gained popularity with investors, such as meeting day swaps, FX turns, jump curves, as well as lookback options, autocallables, and cliquets. Managing risks across all asset classes has always been key, with innovative approaches at S&P Global Market Intelligence like confidence and probability scoring for timing and loss risk, valuation uncertainty risk, and improved implied correlation data.

With the demand for derivatives increasing, regulatory requirements move in tandem. There is a clear need for data and valuation transparency. To tackle this, the last section of the webinar will showcase the tools we have available to help market participants navigate the uncharted waters of 2025 with increased transparency, customization, and on-demand pricing.