CME Group Reports Record July ADV of 24.8 Million Contracts, with Growth in All Asset Classes and Record Interest Rate ADV of Nearly 12 Million Contracts

Rhea-AI Summary

CME Group reported a record July average daily volume (ADV) of 24.8 million contracts, up 24% from July 2023. Highlights include:

- Record July ADV in interest rate (11.6M), equity index (7.4M), metals (765K), agricultural (1.7M), and options (5.1M) products
- Record July U.S. Treasury futures and options ADV of 6.6M contracts
- International ADV grew 28% to 7.6M contracts
- Energy ADV increased 25% to 2.5M contracts
- Foreign Exchange ADV rose 9% to 959K contracts

Notable increases: Micro E-mini Nasdaq-100 futures ADV up 62%, Henry Hub Natural Gas options ADV up 71%, and Micro Gold futures ADV up 68%. BrokerTec U.S. Treasury notional volume reached $172B on July 31, the third-highest trading day in 2024.

Positive

• Record July ADV of 24.8 million contracts, up 24% year-over-year
• Record July ADV in interest rate, equity index, metals, agricultural, and options products
• U.S. Treasury futures and options hit record July volume of 6.6 million contracts
• International ADV grew 28% to 7.6 million contracts
• Energy ADV increased 25% to 2.5 million contracts
• Micro E-mini Nasdaq-100 futures ADV increased 62%
• Henry Hub Natural Gas options ADV increased 71%
• BrokerTec U.S. Treasury notional volume reached $172 billion on July 31, third-highest trading day in 2024

Negative

• None.

Insights

Financial Analyst

CME Group's record-breaking July performance signals robust market activity across all asset classes, particularly in interest rates and equity indices. The 24% year-over-year increase in Average Daily Volume (ADV) to 24.8 million contracts underscores the company's strong market position and the heightened trading activity in derivatives markets.

Key highlights include:

• Record July Interest Rate ADV of 11.6 million contracts, up 23% YoY
• Record July Equity Index ADV of 7.4 million contracts, up 36% YoY
• International ADV growth of 28% to 7.6 million contracts

The surge in interest rate products, especially U.S. Treasury futures and options, reflects market participants' active management of interest rate risk amid evolving monetary policy expectations. The 32% increase in 10-Year U.S. Treasury Note futures and 49% jump in 2-Year U.S. Treasury Note futures indicate heightened activity across the yield curve.

The strong performance in equity index products, particularly the 62% growth in Micro E-mini Nasdaq-100 futures, suggests increased retail participation and growing demand for more granular hedging tools. This trend aligns with the broader democratization of financial markets.

CME Group's diverse product offering and global reach, evidenced by the 28% growth in international ADV, position it well to capitalize on market volatility and evolving trader preferences. The company's ability to attract $73.5 billion in cash collateral and $160.8 billion in non-cash collateral also speaks to its strong risk management framework and market trust.

While these results are impressive, investors should monitor how sustainable this growth is, especially as market conditions and volatility levels may normalize. Additionally, the impact of potential regulatory changes and competition from other exchanges should be considered when evaluating CME Group's long-term prospects.

Market Research Analyst

CME Group's July 2024 performance offers valuable insights into broader market trends and investor behavior. The record-breaking volumes across multiple asset classes suggest a period of heightened market activity and uncertainty.

Notable trends include:

• Surge in interest rate products: The 23% increase in Interest Rate ADV indicates growing concerns about inflation and monetary policy shifts. This aligns with the current macroeconomic environment of central banks navigating inflationary pressures and growth concerns.
• Equity market hedging: The 36% rise in Equity Index ADV, particularly in options products, suggests investors are actively managing risk in their equity portfolios. This could be a response to elevated market valuations and geopolitical uncertainties.
• Commodity market activity: The 2% increase in Agricultural ADV and 33% growth in Metals ADV point to ongoing supply chain challenges and inflation concerns in the real economy.
• Retail trader engagement: The strong performance of micro contracts, such as the 68% increase in Micro Gold futures ADV, indicates continued retail investor participation in derivatives markets.

The 28% growth in International ADV underscores the global nature of current market dynamics and CME Group's expanding international footprint. The particularly strong growth in EMEA (32%) and Asia (18%) suggests increasing adoption of US-based derivatives products by international investors for hedging and speculation.

The record volumes in specific products like Soybean Oil futures and Micro Ether futures highlight niche areas of market interest, potentially driven by factors such as biofuel demand and cryptocurrency market developments.

These trends collectively paint a picture of a market grappling with multiple uncertainties, from monetary policy to technological disruption, driving demand for risk management tools across asset classes. For CME Group, this environment presents both opportunities for growth and challenges in maintaining market stability and integrity.

• Average Daily Volume up 24% from July 2023
• Record July ADV in interest rate, equity index, metals, agricultural and options products
• Record July U.S. Treasury futures and options ADV of 6.6 million contracts
• International ADV grew 28% to 7.6 million contracts

CHICAGO, Aug. 2, 2024 /PRNewswire/ -- CME Group, the world's leading derivatives marketplace, today reported its July 2024 market statistics set a new July average daily volume (ADV) record of 24.8 million contracts, up 24% from July 2023. The company's interest rate, equity index, metals, agricultural and options products also reached July ADV records, while its deeply liquid U.S. Treasury complex hit a new July volume record of 6.6 million contracts. Market statistics are available in greater detail at https://cmegroupinc.gcs-web.com/monthly-volume.

July 2024 ADV across asset classes includes:

• Record July Interest Rate ADV of 11.6 million contracts
• Record July Equity Index ADV of 7.4 million contracts
• Record July Options ADV of 5.1 million contracts
• Energy ADV of 2.5 million contracts
• Record July Agricultural ADV of 1.7 million contracts
• Foreign Exchange ADV of 959,000 contracts
• Record July Metals ADV of 765,000 million contracts

Additional July 2024 product highlights compared to July 2023 include:

• Interest Rate ADV increased 23%
  • Record July U.S. Treasury futures and options volume of 6.6 million contracts
  • Record July Interest Rate options ADV of 2.6 million contracts
  • 10-Year U.S. Treasury Note futures ADV increased 32% to 2 million contracts
  • 2-Year U.S. Treasury Note futures ADV increased 49% to 823,000 contracts
  • 30 Day Fed Funds futures ADV increased 25% to 410,000 contracts
• Equity Index ADV increased 36%
  • Record July Equity Index options ADV of 1.6 million contracts
  • Record E-mini Nasdaq-100 options volume of 101,000 contracts
  • Micro E-mini Nasdaq-100 futures ADV increased 62% to 1.6 million contracts
  • E-mini S&P 500 options ADV increased 30% to 1.4 million contracts
• Energy ADV increased 25%
  • Record July Energy options ADV of 401,000 contracts
  • Henry Hub Natural Gas futures ADV increased 39% to 449,000 contracts
  • Henry Hub Natural Gas options ADV increased 71% to 215,000 contracts
• Agricultural ADV increased 2%
  • All-time monthly record Soybean Oil futures ADV of 223,000 contracts
  • Soybean Meal futures ADV increased 26% to 175,000 contracts
• Foreign Exchange ADV increased 9%
  • New Zealand Dollar futures ADV increased 29% to 41,000 contracts
  • Brazilian Real futures ADV increased 92% to 26,000 contracts
• Metals ADV increased 33%
  • Record July Metals options ADV of 129,000 contracts
  • Micro Gold futures ADV increased 68% to 106,000 contracts
  • Gold options ADV increased 93% to 91,000 contracts
• Options ADV increased 21%
• International ADV increased 28% to 7.6 million contracts, with EMEA ADV up 32%, Asia ADV up 18% and Latin America ADV up 4%
• Micro Products ADV
  • Micro E-mini Equity Index futures and options ADV of 2.8 million contracts represented 38.6% of overall Equity Index ADV and Micro WTI Crude Oil futures accounted for 2.7% of overall Energy ADV
  • All-time monthly record Micro Ether futures ADV of 32,000 contracts
• BrokerTec U.S. Treasury notional volume reached $172 billion on July 31, representing the third highest day of trading on the platform in 2024, and U.S. Repo average daily notional value (ADNV) increased 8% to $291 billion
• Customer average collateral balances to meet performance bond requirements for rolling 3-months ending June 2024 were $73.5 billion for cash collateral and $160.8 billion for non-cash collateral

As the world's leading derivatives marketplace, CME Group (www.cmegroup.com) enables clients to trade futures, options, cash and OTC markets, optimize portfolios, and analyze data – empowering market participants worldwide to efficiently manage risk and capture opportunities. CME Group exchanges offer the widest range of global benchmark products across all major asset classes based on interest rates, equity indexes, foreign exchange, energy, agricultural products and metals. The company offers futures and options on futures trading through the CME Globex platform, fixed income trading via BrokerTec and foreign exchange trading on the EBS platform. In addition, it operates one of the world's leading central counterparty clearing providers, CME Clearing. 

CME Group, the Globe logo, CME, Chicago Mercantile Exchange, Globex, and, E-mini are trademarks of Chicago Mercantile Exchange Inc. CBOT and Chicago Board of Trade are trademarks of Board of Trade of the City of Chicago, Inc. NYMEX, New York Mercantile Exchange and ClearPort are trademarks of New York Mercantile Exchange, Inc. COMEX is a trademark of Commodity Exchange, Inc. BrokerTec and EBS are trademarks of BrokerTec Europe LTD and EBS Group LTD, respectively. The S&P 500 Index is a product of S&P Dow Jones Indices LLC ("S&P DJI"). "S&P®", "S&P 500®", "SPY®", "SPX®", US 500 and The 500 are trademarks of Standard & Poor's Financial Services LLC; Dow Jones®, DJIA® and Dow Jones Industrial Average are service and/or trademarks of Dow Jones Trademark Holdings LLC. These trademarks have been licensed for use by Chicago Mercantile Exchange Inc. Futures contracts based on the S&P 500 Index are not sponsored, endorsed, marketed, or promoted by S&P DJI, and S&P DJI makes no representation regarding the advisability of investing in such products. All other trademarks are the property of their respective owners.

CME-G

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SOURCE CME Group

FAQ

What was CME Group's average daily volume (ADV) in July 2024?

CME Group reported a record July average daily volume (ADV) of 24.8 million contracts in July 2024, which is a 24% increase from July 2023.

How did CME's interest rate products perform in July 2024?

CME's interest rate products achieved a record July ADV of 11.6 million contracts, with U.S. Treasury futures and options hitting a record July volume of 6.6 million contracts.

What was the growth in CME's international average daily volume for July 2024?

CME's international average daily volume increased by 28% to 7.6 million contracts in July 2024, with EMEA ADV up 32%, Asia ADV up 18%, and Latin America ADV up 4%.

How did CME's equity index products perform in July 2024?

CME's equity index products achieved a record July ADV of 7.4 million contracts, with Micro E-mini Nasdaq-100 futures ADV increasing 62% to 1.6 million contracts.

What was the performance of CME's energy products in July 2024?

CME's energy products saw an ADV increase of 25% to 2.5 million contracts, with Henry Hub Natural Gas options ADV increasing 71% to 215,000 contracts.