Selloff or Market Correction? Either Way, Here's What to Do NextSee Overvalued Stocks

Derivatives marketplace hits record November ADV of 28.3 million contracts

EditorAmbhini Aishwarya
Published 12/04/2023, 08:01 AM
© Reuters.
ESH25
-
CL
-
TYH25
-
LCc1
-
ZM
-
MAL
-
WDOc1
-

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.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.