Trading activity on US derivatives exchanges increased across a range of asset classes and exchanges in September, while Europe is still in need of an injection of volatility to boost its markets.
Low interest rates and a lack of volatility have seen a continued drop in volumes on Liffe’s short-term rates products throughout 2014, while Eurex and Euronext have also seen trading volumes relatively flat throughout the third quarter compared to 2013.
In the US though, CME Group saw a sharp rise in both its interest rates and foreign exchange trading. Activity in Eurodollar futures and options rose 26% and 29% respectively, while FX volumes increased 39% and open interest hit an all-time high of 2.6 million contracts.
US options trading had its largest boost this year with overall activity up 15% compared with September 2013. This was largely driven by a spike in equity options trading with activity improving 17% year-on-year.
CBOE’s Volatility Index futures set a quarterly record during Q3, while US Single Stock Futures exchange, One Chicago, saw its volumes rise 21% compared with the same quarter in 2013.
Across the Atlantic fortunes were slightly different. An average of 1.53 million short-term interest rate contracts were traded at Liffe during September, 19% lower than in 2013. Overall activity in the asset class has declined by 29% during this year.
Eurex’s average daily volume was 6.5 million during the month, a slight drop from 6.7 in September 2013. The exchange’s long-term interest rate derivatives did see an uptick though, with trading in its Bund, Bobl and Schatz up to 50.6 million contracts throughout the month.
Activity in Liffe’s long-term rates products also increased slightly, suggesting investors are still preparing for interest rate changes in the long-term rather than the near future.
Euronext has transitioned into “life after NYSE” with a quarter which almost matched its 2013 figures. Down just slightly from the previous year, 34.3 million contracts were traded across its European exchanges.
In Asia, the Singapore Exchange’s total derivatives volume in September was 10.6 million contracts, up 13% month-on-month and 18% year-on-year. The Australian Securities Exchange’s derivatives volumes also rose 14%.