IntercontinentalExchange’s Derivative Volumes Fall In August

+2.03%
Upside
137
Market
140
Trefis
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ICE
Intercontinental Exchange

In contrast to the growing trading volumes in the year so far, IntercontinentalExchange saw a decline in commodity and financial derivative volumes in August. Agricultural and metal derivatives, which had been the major drivers of commodities volumes growth through 2016, saw a 7% year on year (y-o-y) dip. Financial derivatives saw a slight decline in trading volumes. 11% y-o-y growth in interest rate derivatives was slightly offset by continuously declining volumes in foreign exchange and credit derivatives volumes (-63% y-o-y). A slowdown in the Chinese economy in 2015 had given a major boost to trading volumes across all asset classes in August, compared to which most of the asset classes have shown a slump in their volumes in the same month this year.

Going forward, an expected hike in interest rates is likely to boost the interest rate derivative volumes. Further, the uncertainty around oil prices and changing supply and demand expectations with respect to agricultural and metal commodities are likely to continue to drive commodity trading volumes. However, falling FX and credit derivatives volumes are likely to weigh on the exchange’s transaction-based revenues.

ice derivatives

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