Use Of UK Equity Derivatives

In 2007, Ipsos, on behalf of Liffe, conducted a survey of traditional buy-side, hedge funds and sell-side derivatives specialists. The results provide an insight into the utilisation and attitudes towards how equity derivatives are an integral part of investment portfolios and will increasingly have a major part to play in managing the complexities of investment strategy.

Hedge funds to increase trading of UK Equity Derivatives over next 12 months

In 2007, Ipsos, on behalf of Liffe, conducted a survey of traditional buy-side, hedge funds and sell-side derivatives specialists. The results provide an insight into the utilisation and attitudes towards how equity derivatives are an integral part of investment portfolios and will increasingly have a major part to play in managing the complexities of investment strategy.

The research focused on both on-exchange and OTC trades, looking specifically at the key drivers of usage and some of the limiting factors.

Highlights from the survey include:

  • Over two-fifths (41%) have seen an increase in the use of UK equity derivatives
  • Almost half (49%) expect an increase in usage over the next 12 months
  • Brokers are an integral part of the process -- 90% use brokers but they have little influence over investment decisions
  • Surprisingly, very few brokers actively promote UK equity derivatives to their clients
  • Transparency (41%) and liquidity (25%) are the key drivers for trading on-exchange
  • 50% of the buy side would prefer new products to be available on the Central Order book

To request a copy of the executive summary please contact Waheed Aslam

Technical details

Ipsos interviewed by telephone 226 traders, fund managers and analysts between July and August 2007. Respondents were typically Portfolio Managers, Analysts (both sell-side and buy-side), Chief Investment Officers and Investment Strategists of firms with over $10 trillion in assets under management.

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