Derivatives & Commodities Brokerage Global Market Report 2024

The derivatives & commodities brokerage market size has grown strongly in recent years. It will grow from $511.73 billion in 2023 to $555.33 billion in 2024 at a compound annual growth rate (CAGR) of 8.5%. The growth in the historic period can be attributed to factors such as market globalization and integration, financial market innovations, increased demand for risk management solutions, economic growth, industrial demand, and regulatory changes and compliance measures.

The derivatives & commodities brokerage market size is expected to see strong growth in the next few years. It will grow to $779.85 billion in 2028 at a compound annual growth rate (CAGR) of 8.9%. The growth in the forecast period can be attributed to factors such as the emergence of cryptocurrencies, the rise of environmental, social, and governance (ESG) investing, the expansion of renewable energy markets, geopolitical factors, and the increasing participation of retail investors. Major trends in the forecast period include technological advancements, the rise of algorithmic trading and automation, increased focus on regulatory compliance and reporting requirements, and the expansion of cryptocurrency trading services.

The advancement of digital trading practices is anticipated to drive the expansion of the derivatives and commodities brokerage markets in the foreseeable future. Digital trading involves predominantly online transactions involving various securities such as stocks, bonds, mutual funds, ETFs, and currencies. This shift to online platforms offers investors the flexibility of monitoring investments at any time, faster transaction processing, and cost-effectiveness. Brokerage firms specializing in derivatives and commodities also provide specialized advisory services and investment solutions. For instance, data from the UK Board Of Trade in November 2021 revealed that the digital sector singularly contributed £151 billion ($197 billion) to the British economy and employed nearly 5% of the national workforce, reflecting a significant share of the global GDP at $11 trillion ($14 trillion) or 15.5%. Hence, the trend of digitization in trading is a key driver propelling the growth of the derivatives and commodities brokerage market.

The escalation of geopolitical tensions is projected to fuel the expansion of the derivatives and commodities brokerage market in the coming years. Geopolitical tensions encompass conflicts or disputes between nations or regions, often related to territorial, resource, power, or ideological issues. The uncertainty arising from such events drives the demand for risk management tools, where derivatives are utilized to hedge against currency fluctuations, changes in commodity prices, and shifts in global trade dynamics. During periods of geopolitical uncertainty, there's an increased preference for safe-haven assets, prompting higher trading activities in derivatives linked to these assets. Additionally, businesses adapt to evolving trade dynamics using derivatives, investors seek diversification through these instruments, and regulatory changes drive demand for compliance-related services. For instance, data from The Armed Conflict Location & Event Data Project (ACLED) indicates a rise in reported events of political violence targeting civilians and an increase in civilian fatalities from 2020 to 2021. Hence, the surge in geopolitical tensions acts as a catalyst for the growth of the derivatives and commodities brokerage market.

Significant entities operating in the derivatives and commodities brokerage market are innovating by introducing new derivatives trading systems to bolster their market presence. A trading system encompasses a set of rules and parameters guiding the decision-making process for buying or selling financial instruments within financial markets. For instance, in September 2021, Osaka Exchange, Inc., in collaboration with Tokyo Commodity Exchange, launched the J-GATE3.0 derivatives trading system, replacing the previous system introduced in July 2016. This milestone includes new product introductions, rule modifications, and the establishment of a backup center in the Kansai region, reinforcing market resilience. The updated system extends trading hours, introduces CME Group Petroleum Index Futures, and offers 'Flexible Futures Trading' for institutional investors. This initiative aims to bolster the overall resilience of the Japan Exchange Group market, positioning Osaka as a central hub for operations. The upgrades intend to provide a more accessible and diversified trading venue for both domestic and international investors, marking a significant stride in enhancing OSE's derivatives market trading volume.

Major players within the derivatives and commodities brokerage market are strategically focusing on the development of novel execution algorithms as a means to establish a competitive advantage in the industry. These execution algorithms, also known as execution strategies or trading algorithms, consist of pre-defined rules and instructions programmed to automate the buying or selling of financial instruments within the financial markets. For example, Citigroup Inc., a prominent US-based investment banking company, introduced a new suite of intelligent execution algorithms in January 2021, tailored explicitly for global listed derivatives trading. The flagship algorithm, dubbed 'Arrival,' represents an implementation shortfall strategy designed from the ground up. Its primary objective is to minimize slippage by striking a balance between market impact and price volatility in real-time, regardless of the prevailing market conditions. Arrival consolidates multiple strategies into a simplified access point, streamlining the process for clients by eliminating the need to input numerous parameters. Citigroup's algorithm development is heavily focused on capturing intricate instrument and contract-specific details to dynamically model the order book and adjust behavior adaptively, thereby optimizing execution performance. The suite includes various intelligent benchmark algorithms such as TWAP, VWAP, Close, in addition to a range of tactical strategies and smart order types to cater to diverse client requirements amid the ever-evolving landscape of multi-asset trading.

In September 2021, Marex, a UK-based financial services platform, made an undisclosed acquisition of Volcap Trading. This strategic acquisition is anticipated to enhance Marex's capability to offer customized, structured goods and commodities to its clientele. The integration of Volcap Trading's operations into the Marex client platform is expected to yield immediate synergies, benefiting both companies as the expanded product selection caters to a broader spectrum of clients. Volcap Trading, being a specialist commodities brokerage firm based in the UK, aligns with Marex's objectives for expansion and diversification within the derivatives and commodities brokerage market.

Major companies operating in the derivatives & commodities brokerage market report are Nomure Holdings Inc., Goldman Sachs Group Inc., Morgan Stanley, Citigroup Inc., Motilal Oswal Financial Services Ltd., Abans Global Limited, Bovill Limited, Northern Trust Corporation, TP ICAP Group Plc, Multi Commodity Exchange of India Ltd., Japan Exchange Group, Chelsea Corporate Limited, ICICI Securities Limited, Kotak Securities Ltd., Sharekhan, The Charles Schwab Corporation, ETRADE Financial Corporation, Fidelity Investments, Interactive Brokers Group Inc., TD Ameritrade Corporation, TradeStation Group Inc., Saxo Bank A/S, Pepperstone Group Limited, Plus500 Ltd., CMC Markets plc, Admiral Markets Group, GAIN Capital Holdings Inc., Alpari International Limited, City Index Limited, Swissquote Group Holding Ltd., AvaTrade Ltd., Trading Point Group.

North America was the largest region in the derivatives and commodities brokerage market in 2023. The regions covered in the derivatives & commodities brokerage market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the derivatives & commodities brokerage market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The main categories of derivatives and commodities brokerage include commodity brokerage and derivative brokerage. Various types of brokers operate in this space, including futures commission merchants, introducing brokers, the national futures association, commodity pool operators, floor traders, and others. Commodities brokerage refers to firms that facilitate the buying and selling of tangible goods or commodities (such as coffee, sugar, metals, crude oil, and grain) for both private and business clients on a commission basis. The derivative contracts involved encompass options, futures, forwards, and swaps, and are utilized in applications by futures companies, securities firms, and banking institutions.

The derivatives and commodities brokerage market research report is one of a series of new reports that provides derivatives and commodities brokerage market statistics, including derivatives and commodities brokerage industry global market size, regional shares, competitors with a derivatives and commodities brokerage market share, detailed derivatives and commodities brokerage market segments, market trends and opportunities, and any further data you may need to thrive in the derivatives and commodities brokerage industry. This derivatives and commodities brokerage market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.


This product will be delivered within 3-5 business days.