CME Group FX ADV Increases 4% in January 2023

The Chicago
Mercantile Exchange Group (CME) recently published its market statistics for
January 2023, reporting a 4% growth in its average daily volume (ADV) of foreign
exchange transactions in the month. The increase comes as a total of 807,000 <a href=”https://www.financemagnates.com/terms/f/forex/” class=”terms__secondary-term” id=”6faa6714-7f7b-4d23-b1c5-c0d40807d613″ target=”_blank”>forex</a>
contracts were traded on the US-based derivatives marketplace in January.The volume of forex
futures and options traded on the platform also improved in January with total FX futures traded increasing by 5% year-over-year (YoY). An average daily
volume of 4.8 million options contracts were also traded in the past month. “CME Group FX Futures
and Options volume in January continued the year-over-year growth trend from
the prior year, with volumes supported by elevated <a href=”https://www.financemagnates.com/terms/v/volatility/” class=”terms__main-term” id=”7fd330d9-8855-4c31-9770-cb52b328c117″ target=”_blank”>volatility</a> and increased
buyside customer adoption as exhibited by the growth in positions held by Asset
Manager Large Open Interest Holders (LOIH),” Paul Houston, Global Head of FX at
CME Group, noted in a commentary shared with Finance Magnates.Furthermore, Houston
noted that the ADV of listed forex contracts jumped by 4% YoY. In addition, the average open interest in CME Group’s listed FX products increased slightly by 1% last
month.CME Group’s SOFR ADV
SkyrocketsOn January 12, the
single-day volume of Secured Overnight Financing Rate (SOFR) futures and
options contracts traded on the CME <a href=”https://www.financemagnates.com/institutional-forex/cme-group-hits-record-756m-single-day-sofr-futures-and-options-contracts/” target=”_blank” rel=”follow”>hit a record 7.56 million contracts</a> with a record open
interest rate of 35.7 million contracts on the same day. By month-end, CME
Group said its SOFR ADV jumped by 499%. Giving a breakdown of
the volumes, CME Group noted that it posted a record monthly SOFR options
ADV of 1.8 million contracts in January 2023. This came with a record open interest of
approximately 34 million contracts by January 31st. Similarly, the
marketplace saw its SOFR futures ADV skyrocket by 256% with a record open
interest of 9.8 million contracts on January 31st.Across the board, CME
Group reported an ADV of 21.7 million contracts in January 2023. This
represents a 13% increase from <a href=”https://www.financemagnates.com/institutional-forex/cme-groups-adv-jumps-19-to-record-233m-contracts-in-2022/” target=”_blank” rel=”follow”>the 19.2 million contracts</a> traded on the
platform in December 2022. Moreover, the Group
posted <a href=”https://www.financemagnates.com/institutional-forex/cme-groups-adv-jumps-19-to-record-233m-contracts-in-2022/” target=”_blank” rel=”follow”>a record 23.3 million contracts in 2022</a>, which is a 19% increase from
its output in 2022. This came as CME Group’s equity index, interest rate and
forex ADVs shot up by 39%, 18% and 24%, respectively in 2022. In addition, CME
Group <a href=”https://www.financemagnates.com/institutional-forex/cme-group-beats-estimates-and-publishes-higher-2022-results/” target=”_blank” rel=”follow”>beat estimates</a> by posting a fourth quarter and yearly revenue of $1.2 billion and $5 billion last year.