If the 1980s were the fast car and cocktail days of derivatives, the 2000s may well be the decade of carpet slippers and cocoa - at least in the traditionally high-volume debt and currency markets.

Derivatives business grew astronomically during the 1980s and early 1990s with volumes of privately negotiated deals increasing regularly by around 40% each year, according to the industry's trade body, the International Swaps and Derivatives Association (Isda). But now the largest markets have matured, and there is little sign of a renaissance. European Monetary Union (Emu) has reduced the need for foreign exchange derivatives and large government bond issuers borrowing less and even buying back their debt has decreased the scope for interest rate derivatives.