Records break again as futures business booms

Records break again as futures business booms

Derivatives exchanges again saw a bumper year of growth with the big four bourses experiencing increases in volume across the board and some exchanges seeing record annual turnover.

Big four
Eurex was the exchange with the largest volume to pass through it over the year with a total 1.5bn changing hands, a growth of 22% on 2005 during which the exchange saw 1.25bn contracts trade.

A total of 487m equity index derivative contracts and 308m equity derivative contracts were traded throughout the year with the DJ Euro Stoxx 50 index contract being the most heavily traded with 18.5m contracts, a 53% increase as compared with December 2005.

Equity-based derivatives recorded the highest turnover among all product segments in December with 56.3m traded contracts, 40.4m of which related to equity index derivatives and 15.9m to equity options and single stock futures). A total of 487m equity index derivative contracts and 308m equity derivative contracts were traded in 2006. The top equity index derivative was the future on the DJ Euro Stoxx 50 index with 18.5m contracts, a 53% increase as against December 2005.

A total of 49.3m contracts were traded in the fixed-income derivatives segment in December. This included 20.9m contracts on the Bund future, the strongest Eurex product, 11.3m contracts on the Bobl future and 12.4m contracts contributed by the Schatz future, which grew by 22% year-on-year. 731.2m fixed-income derivatives contracts were traded in 2006, around 320m of which related solely to the Bund.

Chicago Mercantile Exchange (CME) posted its seventh consecutive record year with total volume hitting 1.3bn contracts and ADV reaching 5.3m contracts, 28% higher than the previous 12 months.

CME's electronic trading platform, Globex, hit a record 956m contracts with an ADV of 3.8m as the platform grew to account for 75% of total exchange volume in Q4 versus 67% for the equivalent period a year earlier. CME interest rate products' daily volume averaged 3.1m contracts for the year, up 29% from the record volume levels achieved in 2005. This increase was primarily driven by continued growth in CME Eurodollar options, up 44% to 1.1m contracts per day in 2006 over 2005 while electronic CME Eurodollar options were up 180% to 77,000 contracts per day.

Chicago Board of Trade (CBoT) reached record volume figures for 2006 with a total 805.9m contracts going through the exchange, a 19.5% increase over the same period in 2005, making it the exchange's fifth consecutive record year. Total ADV rose 20% with 3.2m contracts changing hands each day while online ADV also saw considerable growth rising to 2.2m, 29% up on the equivalent figure a year earlier. The exchange saw significant increases in its ags and metals products as well as its financial instruments.

Ags volume hit new highs with total volume soaring to 128.2m contracts and ADV increasing by 40% year-on-year to 510,666 contracts. Both corn and wheat also reached record volume totals in futures and options, with 72% and 58% respective ADV growth.

CBoT metals also saw strong growth over the 12 months with total volume rising to 12.4m contracts, nine times greater than 2005's figure. Total 2006 ADV in the metals complex was 49,397 contracts. 

CBoT's financial complex ADV was 2.54m in 2006, an increase of 15% compared with 2005 ADV. Record monthly ADV totals for ten-year US Treasury Note futures and options, two-year US Treasury Note futures and options, five-year US Treasury Note futures and 30-day Federal Funds futures contracts led to the annual ADV record for financial futures of 2.1m contracts, a 16% increase compared with the total from 2005. 

Volume on Euronext Liffe rose 21% higher year-on-year in its derivatives sector with total volume reaching 730m contracts traded. Enhancements made to products and its trading system, Liffe Connect while also extending trading hours for a number of its contracts.

Energy and options
New York Mercantile Exchange (Nymex) volume on Globex saw steady growth over the year as it averaged 360,000 per day in the fourth quarter, up from 175,000 in Q3 and 79,000 in Q2.

For the ninth consecutive year, ICE Futures established an annual volume record with a 120% increase over the previous year's figures. In 2006, exchange-wide volume for ICE Futures increased 120.5%, reaching a record 92.7m contracts compared 42.1m contracts the previous year.

Chicago Board Options Exchange (CBOE) saw its third consecutive record year in terms of volumes with over 670m contracts trading, a 43% growth over 2005 figures. ADV stood at 2.7m contracts, up 88% from 2004. Index options volume rose 49% to over 285m contracts, compared to 2005's record setting 192.5m contracts, while equity options volume was up 43% to 391m contracts. Options on the S&P 500 Index increased 43% to a record 103m contracts, compared to 71.8m traded in 2005. Volume in options on the I-Shares Russell 2000 Index Fund also rose 175% to 45m contracts.

International Securities Exchange (ISE) saw ADV rise 32.5% to 2.4m contracts while total volume in its equity and index options increased 31.9% to 592m.

New York Board of Trade was another exchange to enjoy a record year trading 44.7m contracts, a rise of 18% over 2005. A number of individual contracts scored specific volume records including records in cocoa, sugar No 11 cotton No 2 coffee, frozen concentrated orange juice, US dollar index and Russell 1000 index contracts.

Minneapolis Grain Exchange (MGEX) ended the year with record annual volume and a record membership sale. Volume for the year exceeded the previous 12 months by 16.4% closing the year with total volume of 1.65m futures and options contracts traded. MGEX membership prices continue to rise with a sale on 28 December at the record price of $72,500 - a 242% increase over a year ago when memberships were selling for $30,000.

Kansas City Board of Trade set new annual volume records for the exchange as a whole and for the wheat futures contract in 2006. Total exchange volume for 2006 amounted to 5.3m contracts, breaking the previous record of 4m contracts set last year by 33.7%. For the eleventh time in 13 years, the KCBT set a new annual trading volume record in the hard red winter wheat futures contract. Trading volume for 2006 was 4.76m contracts, breaking the previous annual record of 3.68m contracts set last year by 29.3%.

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