CBOE’s Futures, Options Volumes See Double-Digit Advance in 2017

Despite equities underperforming in 2017, CBOE's total futures and options volume rose by over 10% in 2017.

CBOE (NASDAQ:CBOE) has reported its full-year trading statistics for 2017. During the year, the exchange notched a healthy gain in both its futures and options volume, despite seeing a wavering performance on a monthly basis during 2017. Finance Magnates previously covered CBOE’s December volumes, which can be accessed by the following link.

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2017 was characterized by episodic droughts of volatility. For many exchanges, this resulted in a bottoming out of trading volumes during August with big money remaining on the sidelines. Trading activity picked up in the fall though Q4 2017 was highly uneven, ultimately falling in December 2017 to close out the year.

In terms of a full-year snapshot, CBOE’s total average daily volume in 2017 came in at 6.9 million contracts. This was good for a rise of 10.8 percent year-over-year from 6.2 million contracts per day in 2016. Total options volume overall also rose 10.8 percent in 2017, relative to the year prior.

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Futures volume was also pointed higher in 2017, with average daily contracts being reported at 295,000 contracts. Compared to 2016, this figure constituted a growth of 23.4 percent year-over-year from just 239,000 contracts in 2016. Moving forward, it will be interesting to see the prolonged impact of Bitcoin futures trading on CBOE’s overall volumes, which was introduced last month.

Unlike other exchanges, CBOE saw its US and European equities volumes retreat in 2017, which ran counter to other institutional venues. Equities have been one of the strongest performing sectors during the year, notably towards year end with the passage of the GOP tax bill breathing renewed life into markets.

CBOE’s US equities volume in 2017 fell 1.24 billion shares per day, retreating off of 1.5 billion shares per day in 2016 – this corresponded to a decline of 18.1 percent year-over-year. European equities fared little better during the year, experiencing a 10.7 percent decline relative to 2016.

Finally, global FX volumes were stronger in 2017, helped by specific periods of high trading activity. A combination of events and political scandals helped jar currency markets earlier this year, with FX volumes being one of the prime beneficiaries.

In particular, CBOE’s 2017 average daily notational volume was reported at $29.6 billion, higher by 9.8 percent year-over-year from 2016 ($26.9 billion). Total notational volume at CBOE was also improved, albeit by a factor of 9.4 percent on a yearly basis in 2017.

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