1997 showed a remarkable growth in derivatives trading. As of the end of 1997 eight companies had written options on equities, most notably Hansapank which had 75 percent of the total market volume.

There was EEK 581.8 million worth of contracts sold and EEK 102.7 million worth of contracts bought. The open net position at the end of 1997 - the difference between contracts sold and bought - was EEK 479.1 million. That compared to the June figure of EEK 78.5 million.

Call options made up 95 percent of valid contracts by year-end. Only EEK 33.2 million worth of put options had been written. They were sold for shares of Hansapank, Hoiupank and Ühispank.

By the end of 1997 most of the option contracts had been concluded for shares of Hansapank (36.6 percent), and Hoiupank (29.7 percent). The amount of contracts concluded for the rest of the shares was less than 10 percent total market volume. In total 92 percent of options were written for banking shares.

The option market environment went from strength to strength throughout 1997 until the October stock market crash when activity dropped sharply, even though the market was significantly wider by year-end than it was during the summer. Investors’ preference for call options remained constant. As a rule the due date of options did not exceed six months.