ICE sees record futures and options open interest as traders continue to mitigate risk 

The exchange reported a new record open interest of 84.5 million contracts across its futures and options trading earlier this month.

Intercontinental Exchange (ICE) has surpassed its previously set record for open interest on futures and options trading as the markets continues to look for means to mitigating risk.

The exchange saw a new record of open interest with 84.5 million contracts across its futures and options trading earlier this month, surpassing the previously set record from March last year.

“ICE’s global network connects our customers to some of the deepest and most liquid markets available across an incredible range of asset classes,” said Ben Jackson, president of ICE.

“Our solutions and technology provide our customers with the tools they need to effectively manage their risk whether they are seeking to hedge against interest rate moves, climate risk, equity indices, or changing commodity prices.”

Market participant’s appetite for methods to mitigate risk has risen in the last year and a half due to the volatile market conditions caused by the pandemic and new environmental social and corporate governance (ESG) regulation.

Subsequently, several exchanges have announced similar record-breaking announcements, including CME Group which hit new record volumes for ultra 10-year note futures and 30-year bond futures on 23 February.

CME Group recorded 1.7 million ultra 10-year note futures contracts on 23 February, up from the previous record of 1.5 million set on 25 February last year, while open interest on ultra 10-year note futures also reached a record volume in February, hitting 1.4 million.

“During the month of February, we have seen strong trading volume and record open interest across a number of products in response to rapidly increasing US Treasury market volatility as yields in some tenors have reached 12-month highs,” said Agha Mirza, managing director and global head of interest rate and OTC Products at CME Group, in a February statement.