CME Group’s August ADV Soars to Second-Highest despite Uncertainties

<p>The derivatives <a href="https://www.financemagnates.com/terms/t/trading-platform/">trading platform</a> CME Group has unveiled
its latest market statistics for August 2023, highlighting an average daily
volume (ADV) of 24.2 million contracts. This metric represents a significant
surge of 14% compared to the previous year and the second-highest ADV ever
recorded for the month of August.</p><p>CME Group recorded 13
million contracts in Interest Rate ADV, representing an increase of 22% from
the same period of last year. According to the report released today (Tuesday),
on August 23, CME Group achieved a record-breaking open interest in US Treasury
futures, as it reached 19,823,052 contracts.</p><p>CME Group’s SOFR Futures</p><p>The Secured Overnight
Financing Rate (SOFR) futures ADV experienced a remarkable boost of 61%, totaling
3.1 million contracts. Additionally, SOFR options ADV surged 117%, reaching
1.1 million contracts. Besides this, CME Group’s international markets
experienced an increase of 22% in ADV, totaling 6.9 million contracts.</p><p>In contrast,
FxSpotStream’s ADV dropped in August. According to a report by <a href="https://www.financemagnates.com/institutional-forex/fxspotstreams-august-adv-falls-to-608-billion/" target="_blank" rel="follow">Finance
Magnates</a> Yesterday
(Monday), FXSpotStream recorded an average daily volume (ADV) of USD $60.8
billion, representing a drop from the USD $65 billion reported in the preceding
month. While this decrease is noteworthy, it is consistent with the broader
trend observed in the institutional FX market.</p><p>Despite the decline in
ADV, FxSpotStream’s total volume for August reached USD $1.39 trillion, which slightly surpassed July’s figures. However, it is important to consider that
August had 23 trading days compared to the 21 trading days in July.</p><p>Additionally,
FxSpotStream’s <a href="https://www.financemagnates.com/institutional-forex/fxspotstreams-august-adv-falls-to-608-billion/" target="_blank" rel="follow">spot
market ADV</a> value in
August was USD $48 billion, which is down from the USD $52 billion reported in July.
Although there was a modest increase in the other category of ADV, rising from
USD $12.5 billion to USD $12.7 billion, it was insufficient to offset the
decline in spot market volumes.</p><p>Spot FX Challenges
across Regions</p><p>In April 2023, the institutional spot foreign <a href="https://www.financemagnates.com/terms/e/exchange/">exchange</a>
market witnessed a <a href="https://www.financemagnates.com/institutional-forex/cmes-fx-link-grows-32-yoy-spot-fx-sees-529b-in-april/" target="_blank" rel="follow">softening
in trading activities</a> across
various regions, with a noticeable decline in volumes. The spot FX trading
among institutional investors experienced a decrease in April across global
regions.</p><p>This trend was evident
not only in CME but also in data from industry peers, including Chicago-based
Cboe FX, Deutsche Borse’s 360T, FXSpotStream, and Japan’s
Click 365. Earlier in the year, CME Group’s revenue surged to USD $1.4 billion
during the first quarter of the year, representing its second-quarterly revenue.</p>

This article was written by Jared Kirui at www.financemagnates.com.