The Chicago Mercantile Exchange (CME) Group has just published its monthly metrics for May and the slump in FX trading volumes continues. Despite the month providing more volatility tied to the most traded EUR/USD currency pair, the monthly average daily volume for its foreign exchange business has still remained much lower than March figures.
This makes for a slight rebound in May from sharply lower levels seen in February, the second consecutive month of lower numbers for the CME, averaging 589,000 contracts daily in May, which is sharply lower than a year ago by 43% and 5% higher than in April. Additional details reveal that the average daily notional value (ADV) of FX contracts traded during the month amounted to $73 billion.
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Overall, the CME Group Volume Averaged averaged 13.0 million contracts per day in May 2014, which is higher by 6 percent from April. Volumes have been increasing in the Eurodollar futures and options, while the total amount of interest rate contracts traded has risen by 27% from April. The relentless bond markets rally in recent weeks has been an extraordinary event according to many market analysts, especially in light of the lack of “great rotation” funds. The CME Group equity index volume in May 2014 averaged about 2.2 million contracts per day, which is lower by 7.5% from April and down by 22% from the same month last year.