FX derivatives activity flat but healthy

The total notional value of FX derivatives contracts in H2 2002 was $18.4 trillion, up 2% from $18 trillion in H1 2002.

Notional value in FX options was slightly down in H2 at $3.2 trillion, from $3.4 trillion in H1 2002. But H1 2002 saw a 39% rise in options values, and those amounts were largely similar in H2.

Indeed, market participants have reported healthy volumes in FX options, and many banks, such as TD Securities, Bank One and American Express Bank have hired dealers and established n