How Derivative Exchanges can Promote Sustainable Development - An Action Menu

Year published
2021
Theme
ESG
Regulation compliance
SDG Investments
Sustainability Integration Strategy
Author
SSE Initiative
Category
Report

While the role of stock exchanges and equity markets has been well-explored over the past decade, the potential role of derivatives and derivatives markets is less understood. This document provides an overview of the role of derivatives markets generally, presents some of the things derivatives exchanges are already doing in relation to sustainability, and highlights ways in which these exchanges can support the transition to more sustainable development pathways.

The report identifies an action menu of opportunities for all exchanges. Some of these actions (e.g. product development) may happen in response to market signals and opportunities created by regulatory developments. Others will depend on an exchange’s assessment of where it is able to have impact given its operating environment and level of support from participants in its ecosystem. Ultimately there are opportunities for all exchange operators to ensure their markets are responding to the sustainability imperative.