Energy Product Derivatives - Malta

Malta

Highlights

The nominal value in the Energy Product Derivatives market is projected to reach US$6.36bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 1.83% resulting in a projected total amount of US$6.96bn by 2029.
The average price per contract in the Energy Product Derivatives market amounts to US$0.16 in 2024.
From a global comparison perspective it is shown that the highest nominal value is reached United States (US$26.91tn in 2024).
In the Energy Product Derivatives market, the number of contracts is expected to amount to 43.29k by 2029.

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The Energy Product Derivatives market in Malta reflects the country's growing interest in financial instruments related to energy products.

Customer preferences: Malta's market for Energy Product Derivatives is influenced by customer preferences that seek to diversify investment portfolios and hedge against energy price fluctuations. Investors in Malta are increasingly looking for opportunities in the derivatives market to manage risk and potentially enhance returns.

Trends in the market: The Energy Product Derivatives market in Malta is witnessing a trend towards increased participation from institutional investors and financial institutions. This trend is driven by the growing awareness of the benefits of derivatives in managing energy price risks. Moreover, the market is experiencing a shift towards more sophisticated derivative products tailored to meet the specific needs of investors in Malta.

Local special circumstances: Malta's geographical location and limited domestic energy resources play a significant role in shaping the Energy Product Derivatives market in the country. Being a small island nation, Malta heavily relies on energy imports, making it vulnerable to global energy price fluctuations. As a result, market participants in Malta are keen on utilizing energy derivatives to mitigate risks associated with price volatility in the energy market.

Underlying macroeconomic factors: The development of the Energy Product Derivatives market in Malta is also influenced by broader macroeconomic factors such as global energy trends, regulatory environment, and economic stability. As Malta continues to focus on sustainable energy solutions and reducing its carbon footprint, there is a growing demand for energy derivatives that align with environmentally friendly practices. Additionally, the stability of Malta's economy and its strategic position in the Mediterranean region contribute to the attractiveness of the Energy Product Derivatives market for both domestic and international investors.

Data coverage:

Figures are based on commodity derivatives, their notional value, the number of contracts traded, the open interest (outstanding contracts at the end of a year), and the average value of a contract.

Modeling approach / Market size:

Market sizes are determined by a Bottom-Up approach, based on a specific rationale for each market segment. As a basis for evaluating markets, we use market research & analysis, and data of World Bank, as well as the World Federation of Exchanges. Furthermore, we use relevant key market indicators and data from country-specific associations and national data bureaus such as GDP, wealth per capita, and the online banking penetration rate. This data helps us to estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. In this market, we use the HOLT-damped Trend method to forecast future development. The main drivers are GDP per capita an the online banking penetration rate.

Additional Notes:

The market is updated twice per year in case market dynamics change.