Metals And Energy Derivatives Continue To Drive CME’s Monthly Trading Volumes

November 9th, 2016 by Trefis Team
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CME Group

CME Group (NASDAQ:CME) saw its average daily trading volumes across key products increase by 2% year over year to 13.1 million contracts and 8% year to date to 15.2 million contracts in October. The growth in volumes was primarily driven by the phenomenal growth in metal and energy derivatives for over a year now.  Amid a subdued global macroeconomic environment, metals have continued to be a preferred safe investment asset, thus boosting their demand.

With increased volatility in oil markets, driven by a demand-supply gap, energy derivative trading volumes have continued to grow phenomenally. We believe the growth trend shall continue in the future, thereby driving the transaction fees for the company.

We have seen a slight decline in equity volumes in the past few months. With the likelihood of an improvement in macro conditions, we believe these volumes will continue their upward trend, as seen in the first half of the year. With the possibility of an interest rate hike in early 2017, we expect the interest rate derivative volumes to pick up pace.

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See the full Trefis analysis for CME Group.

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