Several US derivatives exchanges broke their daily traded volume records by more than 20% during February 28.The increases were led by the Chicago Mercantile Exchange (CME), which broke its past daily record by 2.7 million contracts to 13.7 million, representing a notional contract value of roughly $8 trillion. The Chicago Board of Trade (CBOT) saw an increase of 3.4 million contracts on its previous record, reaching 11.2 million contracts traded. Both the CME and CBOT also witnessed a new high of 80% of total volumes traded electronically during the day.
Meanwhile, the Chicago Board Options Exchange and New York-based International Securities Exchange broke their past daily records by around 1 million contracts each, to 6.8 million and 5.5 million contracts, respectively. Both the options exchanges pointed to a surge in trading on the Nasdaq-100 Index Tracking Stock in particular.
Randy Frederick, Austin-based director of derivatives at Charles Schwab, said the surges showed a rush to buy protection against unguarded risk. “People who didn’t have the foresight to hedge their positions are now saying: I want to hedge these positions.” He added that premiums on options and futures were, for the most part, still cheap.
More on Exchanges
Onshore derivative market is the focus for Osaka Securities Exchange
China exchange developing technique to reduce margin requirements
Significant global players not on list to join Shanghai Clearing House
Taiex futures set to be followed by other products
Sign up for Risk.net email alerts
Sponsored webinar: IBM Risk Analytics
Nominated for two technology awards
Nominated for post trade technology award
Sponsored webinar: Collateral and counterparty tracking
There are no comments submitted yet. Do you have an interesting opinion? Then be the first to post a comment.