The Chicago Mercantile Exchange (CME) reaped the benefits of the plunging dollar and increased volatility on Monday and Tuesday (December 8 and 9) with successive record FX trading volumes. Total FX futures and options volume reached 369,548 contracts on Monday, before pushing higher the next day to 431,481 – 22% higher than the previous record of 352,823 contracts set in June.
The combined notional value of FX products traded on Monday was $39.1 billion, while on Tuesday the figure reached $48.4 billion.
CME FX futures also set a one-day record on Globex, with 134,946 contracts traded on Tuesday. Sterling futures traded on Globex also saw record volume, with 14,808 contracts traded, while open interest set a new high of 93,873 positions outstanding on December 9. Open interest records were also set in Jpy, Gbp, Aud, Nzd and Zar on Monday.
Total FX product volume at the Merc during Q4 is already about 50% higher than last year, a reflection of growing FX volatility and the growth in popularity of Globex, the exchange says. The CME also recently cut its prices in response to competition from European derivatives exchange, Eurex, which is expanding into the US.
The FX market’s buoyancy has led to strong growth across online platforms in recent months. Gain Capital reported 100% YOY trading growth last week, while EBS, Reuters Matching, CLS Bank, FXall and State Street’s Global Link all reported either high or record days since September.