CME Group Reports Record May ADV of 26 Million Contracts

Rhea-AI Summary

CME Group, the leading derivatives marketplace, reported a record average daily volume (ADV) of 26 million contracts in May 2024, marking a 4% increase from May 2023. The interest rate and metals products set new May ADV records. On May 28, U.S. Treasury complex hit an all-time highest daily volume of 34,350,339 contracts. International volume rose by 12% year-over-year. Specific product highlights include a 3% increase in interest rate ADV, a 22% rise in energy ADV, and a 33% jump in metals ADV. Key records were seen in Henry Hub Natural Gas futures and options, WTI Calendar Spread options, and Micro Copper futures.

Customer average collateral balances for cash and non-cash collateral were $75.6 billion and $159 billion, respectively. The report underscores CME Group’s pivotal role in enabling efficient risk management and opportunity capture across various markets.

Positive

• Record May ADV of 26 million contracts, up 4% from May 2023.
• Interest rate ADV increased by 3%.
• Record single-day U.S. Treasury volume of 34,350,339 contracts on May 28.
• Energy ADV increased by 22%.
• Metals ADV increased by 33%.
• International volume up 12% year-over-year.
• Henry Hub Natural Gas futures ADV hit a record of 578,682 contracts.
• Henry Hub Natural Gas options ADV reached a record of 243,589 contracts.
• Highest ever WTI Calendar Spread options volume of 199,300 contracts on May 31.
• Micro products continue to show strong performance, with Micro Ether futures hitting an all-time monthly record ADV of 27,477 contracts.

Negative

• Despite the positive performance in several product categories, the overall ADV growth of 4% may be seen as modest compared to greater increases in specific products.
• No significant growth reported in the equity index and agricultural sectors, which may be a concern for diversification.

Insights

Financial Analyst

CME Group's new record in May 2024, with an average daily volume (ADV) of 26 million contracts, signals a positive momentum in the derivatives market. This increase of 4% from May 2023 suggests sustained growth amid potentially higher market volatility and investor interest in hedging strategies.

For a retail investor, it is vital to understand that high trading volumes typically drive up exchange revenues through transaction fees. This phenomenon could improve CME Group's revenue and profitability projections for the near term.

Moreover, the record interest rate and metals ADV imply strong demand across diverse asset classes, underscoring the exchange's robust market position. Additionally, the all-time high U.S. Treasury volume on May 28 indicates heightened activity in the bond market, possibly influenced by economic policy changes or interest rate fluctuations.

However, investors should also consider the high dependency on market volatility, which can be unpredictable. Sustained high volumes might not be guaranteed if market conditions stabilize, potentially affecting future revenue streams.

Rating: 1

Market Research Analyst

The reported 12% year-over-year increase in international volume highlights CME Group's expanding global reach. EMEA and Latin America, with respective increases of 17% and 10%, demonstrate growing participation in these regions. This international growth diversification is strategic, potentially mitigating risks associated with regional economic fluctuations.

Additionally, the surge in Micro Products ADV, like the Micro E-mini Equity Index futures, indicates retail investor engagement. These smaller contract sizes make derivatives more accessible, suggesting CME Group's success in tapping into the retail investor market.

Such diversification strategies are important for long-term resilience, as they reduce the company's reliance on any single market or asset class. For retail investors, this means a potentially more stable investment in the face of global economic changes.

Rating: 1

Energy Market Expert

The record-setting May for energy products, particularly the Henry Hub Natural Gas futures and options, points to enhanced demand and liquidity in energy derivatives. The 22% increase in energy ADV suggests active participation, likely driven by fluctuating energy prices and geopolitical influences.

Furthermore, the all-time records for WTI options on May 31 highlight significant speculative and hedging activities in crude oil markets. This can be a double-edged sword, providing opportunities for profit but also exposing the market to volatility risks.

Retail investors should monitor energy sector trends closely, as continued volatility could sustain high trading volumes. However, unexpected stability in energy prices might reduce trading activities, affecting volumes and revenues.

Rating: 1

• Record May interest rate ADV, with all-time highest daily U.S. Treasury volume on May 28
• Record May metals ADV
• International volume up 12% year-over-year

CHICAGO, June 4, 2024 /PRNewswire/ -- CME Group, the world's leading derivatives marketplace, today reported its May 2024 market statistics set a new average daily volume (ADV) record of 26 million contracts for the month, up 4% from May 2023. The company's interest rate and metals products also reached May ADV records, as its deeply liquid U.S. Treasury complex hit a new single-day record of 34,350,339 contracts on May 28. Market statistics are available in greater detail at https://cmegroupinc.gcs-web.com/monthly-volume.

May 2024 ADV across asset classes includes:

• Record May Interest Rate ADV of 14.4 million contracts
• Equity Index ADV of 5.8 million contracts
• Options ADV of 4.8 million contracts
• Energy ADV of 2.5 million contracts
• Agricultural ADV of 1.7 million contracts
• Record May Metals ADV of 866,000 million contracts
• Foreign Exchange ADV of 896,000 contracts

Additional May 2024 product highlights compared to May 2023 include:

• Interest Rate ADV increased 3%
  • All-time record U.S. Treasury futures and options volume of 34,350,339 contracts on May 28
  • 5-Year U.S. Treasury Note futures ADV increased 15% to 2.4 million contracts
  • 2-Year U.S. Treasury Note futures ADV increased 22% to 1.4 million contracts
  • Ultra 10-Year U.S. Treasury Note futures ADV increased 46% to 868,000 contracts
• Energy ADV increased 22%
  • Record May Henry Hub Natural Gas futures ADV of 578,682 contracts       
  • Record May Henry Hub Natural Gas options ADV of 243,589 contracts   
  • All-time record WTI Calendar Spread options volume of 199,300 contracts on May 31   
  • All-time record WTI Weekly options volume of 46,215 contracts on May 31
  • NY Harbor ULSD futures ADV increased 34% to 169,000 contracts
• Agricultural ADV increased 9%
  • Soybean Meal futures ADV increased 31% to 171,000 contracts
  • Chicago SRW Wheat futures ADV increased 22% to 138,000 contracts
• Metals ADV increased 33%
  • All-time monthly record Micro Copper futures ADV of 30,928 contracts
  • All-time monthly record Copper options ADV of 19,689 contracts
• International ADV increased 12% to 7.5 million contracts, with EMEA ADV up 17% and Latin America up 10%
• Micro Products ADV
  • Micro E-mini Equity Index futures and options ADV of 2 million contracts represented 35.6% of overall Equity Index ADV and Micro WTI Crude Oil futures accounted for 2.9% of overall Energy ADV
  • All-time monthly record Micro Ether futures ADV of 27,477 contracts
• Customer average collateral balances to meet performance bond requirements for rolling 3-months ending April 2024 were $75.6 billion for cash collateral and $159 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

 

View original content:https://www.prnewswire.com/news-releases/cme-group-reports-record-may-adv-of-26-million-contracts-302162799.html

SOURCE CME Group

FAQ

What record did CME Group achieve in May 2024?

CME Group reported a record average daily volume (ADV) of 26 million contracts in May 2024.

How much did CME Group's interest rate ADV increase in May 2024?

CME Group's interest rate ADV increased by 3% in May 2024 compared to May 2023.

What was the highest daily volume for U.S. Treasury contracts in May 2024?

The highest daily volume for U.S. Treasury contracts was 34,350,339 contracts on May 28, 2024.

How much did the international volume grow in May 2024?

International volume grew by 12% in May 2024 year-over-year.

What were the record figures for Henry Hub Natural Gas futures and options in May 2024?

Henry Hub Natural Gas futures ADV hit 578,682 contracts, and options ADV reached 243,589 contracts in May 2024.

What notable performance was seen in CME Group's micro products in May 2024?

Micro Ether futures hit an all-time monthly record ADV of 27,477 contracts in May 2024.

What increase was seen in energy ADV for CME Group in May 2024?

Energy ADV for CME Group increased by 22% in May 2024.

How much did metals ADV increase for CME Group in May 2024?

Metals ADV increased by 33% for CME Group in May 2024.