Emerging derivatives markets?

Only 10% of global derivatives turnover is in contracts denominated in the currency of an emerging market economy (EME), much lower than the share of these economies in global GDP or world trade. Derivatives in EME currencies also tend to be less complex and more likely to be traded outside the home economy than those in advanced economy currencies. Differences persist even if we control for key drivers of derivatives turnover such as the size of the bond market, the openness of the capital account, the amount of foreign trade and the size of external liabilities. Instead, the small size of EME derivatives markets appears to reflect differences in per capita income. Large external asset holdings by residents of a country go hand in hand with lower turnover, perhaps because they are used as a hedge against country risk.