The global equity derivatives market is worth $2,300bn - and that is excluding exchange-traded products such as stock index futures contracts - according to new figures from the International Swaps and Derivatives Association.
For the first time ISDA's mid-year survey includes equity derivatives, consisting of privately negotiated equity forwards, swaps and options but not futures contracts and other exchange-traded instruments.
The figures suggest that many equity investors, particularly insurance companies struggling to match assets and liabilities in a collapsing market, are using bespoke derivatives instruments to hedge exposure.
The survey of the over-the-counter derivatives markets also showed the nominal value of outstanding interest rate and currency derivatives stood at $82,700bn - a rise of 19 per cent from last December.
The value of outstanding credit derivatives, consisting of credit default swaps - one of the fastest-growing areas of the capital markets - reached $1,600bn, a rise of 35 per cent.
"The markets continue to grow and to be an important part of users' ability to manage risk," said ISDA chief executive Robert Pickel.
Although the headline numbers suggest the markets are huge and that they could contain substantial risk exposure for firms, Mr Pickel said the actual mark-to-market exposure was typically 2 to 5 per cent of the nominal outstanding value of a particular market.