CME Group’s June Volumes Stagnate, FX Storms Higher on USD Movement

FX trading activity was a bright spot at CME in June following a largely tranquil month.

CME Group (NASDAQ: CME), one of the world’s largest derivatives marketplaces, has just reported its June 2017 aggregated trading volumes. The latest figures again showed steady growth despite what was largely billed as a tranquil month for markets.

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June 2017 was notably absent of any major market drivers – apart from the US Federal Reserve’s rate hike that was all but priced in, markets were essentially dormant as a summer lull set in. That CME’s overall volumes did not see any decline is arguably the real story, given May’s market jitters via a tumultuous string of political scandals in the US, as well as elections in France.

In terms of its overall volume for June 2017 however, CME Group reported an average of 16.5 million contracts per day, unchanged on a month-over-month basis from May 2017. This latest reading also registered a consecutive monthly growth for the first time in H1 after bottoming out in April 2017.

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It should be noted that June 2017 featured a total of 22 trading days, which compared to 22 trading days back in May 2017 as well. For the most part, H1 2017 has been defined by isolated pockets and droughts of volatility, which has been the primary factor behind exchange’s volumes with CME being no exception.

Looking at a yearly timetable as a means of comparison, June 2017 proved to be more or less equivalent, which was unchanged from 16.4 million contracts per day in June 2016. Gains in energy trading were able to offset losses in interest rates and equity derivatives on a year-over-year basis in June 2017.

FX continues to pick up steam

CME Group’s average daily foreign exchange (FX) volumes were again higher in June 2017, coming in at 1,014,000 contracts per day vs. 823,000 contracts per day in May 2017, or 23.2 percent higher month-over-month. This was attributed to movements in the USD, which saw wide movement against most of the majors, namely the EUR.

Year-on-year, June 2017’s FX figures were also unchanged from 1,018,000 contracts per day in June 2016. One month after incurring a sizable decline in equity index trading, CME Group saw a sizable rebound to 3.1 million contracts per day, paring all losses last month and easily beating a figure of 2.3 million contracts per day in May 2017.

Moving forward, July has already taken a more moderate tone that has had no discernable event thus far on the docket. With many traders entering the season for holidays, market activity could be even more muted than June.

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