Here's some interesting facts about French bank Societe Generale and the equity derivative market.
The global value of equity derivative transactions is currently around $8 trillion. According to a Boston Consulting Group report, this figure could increase to some $20bn by 2007.
Revenues from equity derivative operations totalled $14bn in 2004, some 7.6% of total investment banking revenues.
According to recent research undertaken by Merrill Lynch and Morgan Stanley, Societe Generale makes more money than any other bank selling equity derivatives. The firm generated $2bn in revenues last year, and took in around $1.5bn in the first half of 2005 alone.
Jean-Pierre Mustler, the head of SocGen's corporate & investment banking division, is quoted by Bloomberg, saying that his firm has had only 2 losing months in equity derivatives in the last 15 years. The French bank has been in this market for the last 20.
The bank's equity derivative unit is said to have hired around 100 professionals a year for the last three years. Staff turnover in the unit is believed to have averaged 8% in the same period.