The derivatives trading platform CME Group has unveiled
its latest market statistics for August 2023, highlighting an average daily
volume (ADV) of 24.2 million contracts. This metric represents a significant
surge of 14% compared to the previous year and the second-highest ADV ever
recorded for the month of August.
CME Group recorded 13
million contracts in Interest Rate ADV, representing an increase of 22% from
the same period of last year. According to the report released today (Tuesday),
on August 23, CME Group achieved a record-breaking open interest in US Treasury
futures, as it reached 19,823,052 contracts.
CME Group’s SOFR Futures
The Secured Overnight
Financing Rate (SOFR) futures ADV experienced a remarkable boost of 61%, totaling
3.1 million contracts. Additionally, SOFR options ADV surged 117%, reaching
1.1 million contracts. Besides this, CME Group’s international markets
experienced an increase of 22% in ADV, totaling 6.9 million contracts.
In contrast,
FxSpotStream’s ADV dropped in August. According to a report by Finance
Magnates Yesterday
(Monday), FXSpotStream recorded an average daily volume (ADV) of USD $60.8
billion, representing a drop from the USD $65 billion reported in the preceding
month. While this decrease is noteworthy, it is consistent with the broader
trend observed in the institutional FX market.
Despite the decline in
ADV, FxSpotStream’s total volume for August reached USD $1.39 trillion, which slightly surpassed July’s figures. However, it is important to consider that
August had 23 trading days compared to the 21 trading days in July.
Additionally,
FxSpotStream’s spot
market ADV value in
August was USD $48 billion, which is down from the USD $52 billion reported in July.
Although there was a modest increase in the other category of ADV, rising from
USD $12.5 billion to USD $12.7 billion, it was insufficient to offset the
decline in spot market volumes.
Spot FX Challenges
across Regions
In April 2023, the institutional spot foreign exchange
market witnessed a softening
in trading activities across
various regions, with a noticeable decline in volumes. The spot FX trading
among institutional investors experienced a decrease in April across global
regions.
This trend was evident
not only in CME but also in data from industry peers, including Chicago-based
Cboe FX, Deutsche Borse’s 360T, FXSpotStream, and Japan’s
Click 365. Earlier in the year, CME Group’s revenue surged to USD $1.4 billion
during the first quarter of the year, representing its second-quarterly revenue.
This article was written by Jared Kirui at www.financemagnates.com.
