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Derivatives marketplace hits record November ADV of 28.3 million contracts

EditorAmbhini Aishwarya
Published 04/12/2023, 13:02
© Reuters.
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CHICAGO - The derivatives market has seen a record-setting November, according to the latest report from CME Group (NASDAQ:CME). The marketplace achieved an all-time high Average Daily Volume (ADV) of 28.3 million contracts for the month, marking a 21% increase from the same period last year. This surge in trading activity reflects a broad-based growth across various asset classes.

Interest rate derivatives led the charge with an unprecedented ADV of nearly 17 million contracts, showcasing the sector's significant expansion. The U.S. Treasury complex also reported its highest monthly performance to date, underlining the robust trading activity within the fixed income space.

Equity Indexes were another major contributor to the record numbers, with an ADV of over six million contracts. Notably, the options segment set a new benchmark for November, as overall options trading volume exceeded five million contracts per day. Interest Rate options alone jumped to over three million contracts daily, registering a substantial gain from the previous year.

Energy markets maintained strong performance levels with an ADV topping two million contracts, while agricultural commodities followed closely behind, setting their own November records. Soybean Meal and Live Cattle options trading volumes saw sharp increases, contributing to the overall growth in this sector.

The foreign exchange markets demonstrated resilience with an ADV of 947,000 contracts. Brazilian Real futures were particularly notable for setting new records. Metals markets advanced as well, with an ADV of 664,000 contracts bolstered by Aluminum futures' performance.

Innovations within the marketplace have also played a role in this growth, with products like Ultra U.S. Treasury Bond futures experiencing extraordinary trading volumes. SOFR futures and options surged impressively, with futures up by seventy percent and options nearly doubling their previous count.

Micro Product segments constituted a substantial portion of the overall market activity, significantly influencing Equity Index volumes and carving out a niche within the Energy sector through Micro WTI Crude Oil futures.

BrokerTec's U.S Treasury Average Daily Notional Value (ADNV) increased modestly to $108 billion, indicating sustained interest and activity in fixed-income trading during this record-setting month for the derivatives marketplace.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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