CME’s August FX Report Sees Futures Volume Trending Upwards
- CME Group's August FX report revealed several upcoming new products this fall.
Derivatives marketplace giant CME Group (NASDAQ: CME) has released a detailed monthly composite of its product segments. In August 2017 the group saw a strong growth across a number of different areas, including several records in its futures and open interest volumes.
August 2017 was unusually active for a summer month, with a higher number of trading days (23) and an uptick in trading Volatility Volatility In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders Read this Term playing key roles. A combination of escalating rhetoric and geopolitical events on the Korean peninsula also kept markets on edge and active, seemingly dispelling the notion of a summer lull.
Source: CME Group
In particular, CME Group set a record for open interest in FX futures and options on August 3, 2017 – this corresponded to 2,717,398 contracts. CME Group’s FX futures ADV for the month of August was reported at 731,489 contracts ($75.6 billion notional), a jump of 26.6 percent on a yearly basis from August 2016.
Futures open interest also came in at 1,802,982 contracts during the month, which corresponded to a growth of 30.0 percent year-over-year from August 2016. The latest tranche of FX options ADV also yielded 85,653 contracts ($10.6 billion notional) in August 2017, which justified an increase of 69.6 percent year-over-year from August 2016. This was amongst the group’s strongest segments of the month.
Source: CME Group
New records in August
A closer examination of CME Group’s open interest also revealed multiple records being set across specific options. This included an all-time record of open interest CADUSD options on August 3, 2017 of 126,102 contracts. Moreover, FX weekly options ADV scored a record during the month of August, having now established fresh highs in six consecutive months.
CME FX Weekly options traded at a record high of 30,659 contracts per day in August 2017, led by euro and Japanese yen FX options.
CME rolling out new product lineup
Looking ahead, CME Group is also rolling out multiple new product segments, including implied pricing across its FX monthlies. Starting on September 25, CME will be implementing implied pricing, which will look to enhance Liquidity Liquidity The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent Read this Term across all expiries, including both outrights and spreads.
The implied pricing will apply to EUR/USD, JPY/USD, CAD/USD, GBP/USD, AUD/USD, and EUR/GBP pairs. Furthermore, a previous launch of CME’s Self-Match Prevention (SMP) enhancements on September 24 is being pushed back to October 2.
The group’s SMP represents an optional function that enables market participants to prevent the matching of orders for accounts with common ownership if both the buy and sell orders contain the same SMP ID and Globex Firm ID.
Ahead of this date, CME Group will be offering a mock trading session on September 30, for customers to test their Self-Match Prevention configuration within the CME Globex production interface.
Derivatives marketplace giant CME Group (NASDAQ: CME) has released a detailed monthly composite of its product segments. In August 2017 the group saw a strong growth across a number of different areas, including several records in its futures and open interest volumes.
August 2017 was unusually active for a summer month, with a higher number of trading days (23) and an uptick in trading Volatility Volatility In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders Read this Term playing key roles. A combination of escalating rhetoric and geopolitical events on the Korean peninsula also kept markets on edge and active, seemingly dispelling the notion of a summer lull.
Source: CME Group
In particular, CME Group set a record for open interest in FX futures and options on August 3, 2017 – this corresponded to 2,717,398 contracts. CME Group’s FX futures ADV for the month of August was reported at 731,489 contracts ($75.6 billion notional), a jump of 26.6 percent on a yearly basis from August 2016.
Futures open interest also came in at 1,802,982 contracts during the month, which corresponded to a growth of 30.0 percent year-over-year from August 2016. The latest tranche of FX options ADV also yielded 85,653 contracts ($10.6 billion notional) in August 2017, which justified an increase of 69.6 percent year-over-year from August 2016. This was amongst the group’s strongest segments of the month.
Source: CME Group
New records in August
A closer examination of CME Group’s open interest also revealed multiple records being set across specific options. This included an all-time record of open interest CADUSD options on August 3, 2017 of 126,102 contracts. Moreover, FX weekly options ADV scored a record during the month of August, having now established fresh highs in six consecutive months.
CME FX Weekly options traded at a record high of 30,659 contracts per day in August 2017, led by euro and Japanese yen FX options.
CME rolling out new product lineup
Looking ahead, CME Group is also rolling out multiple new product segments, including implied pricing across its FX monthlies. Starting on September 25, CME will be implementing implied pricing, which will look to enhance Liquidity Liquidity The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent Read this Term across all expiries, including both outrights and spreads.
The implied pricing will apply to EUR/USD, JPY/USD, CAD/USD, GBP/USD, AUD/USD, and EUR/GBP pairs. Furthermore, a previous launch of CME’s Self-Match Prevention (SMP) enhancements on September 24 is being pushed back to October 2.
The group’s SMP represents an optional function that enables market participants to prevent the matching of orders for accounts with common ownership if both the buy and sell orders contain the same SMP ID and Globex Firm ID.
Ahead of this date, CME Group will be offering a mock trading session on September 30, for customers to test their Self-Match Prevention configuration within the CME Globex production interface.