Global property derivatives Q3 trading rebounds

LONDON (Reuters) - Global property derivatives trading more than doubled to 756 million pounds in the third quarter from the second, reflecting a recovery in financial markets after the euro zone debt shock, data showed on Tuesday. Investment Property Databank, which provides licences for investors who trade swaps based on its global suite of indexes, said year-to-date volumes totalled 1.5 billion pounds, with 300 million pounds of that in the second quarter.

Second-quarter volumes hit their lowest level in 4-1/2 years as sovereign debt woes engulfed the euro zone.

Nick Scarles, chairman of Investment Property Forum's derivatives interest group and Grosvenor's GROV.UL group finance chief, said the spike in third-quarter volumes reflected a general recovery in the financial markets as a whole.

They also showed the level of pricing had been "attractive to investors and those who trade in property derivatives for profit," Scarles said in a statement.

The UK dominates the global derivatives market, accounting for 731 million pounds worth of trades. It was followed by France, with 25 million pounds worth of trades.

In the nine months to end-September 2009, derivatives volumes totalled 2.1 billion pounds, with 762 million in the third quarter.

(Reporting by Andrew Macdonald; Editing by Erica Billingham)

($1=.6225 Pound)