The FIA, which has been collecting and disseminating US volume data since 1960, claims to act as a principal spokesbody for 180 corporate members within the futures and options industry on legislative and regulatory issues. Acting on the assumption that the current trend continues, it estimates futures trading volume for the whole year will surpass last year’s high volumes and the previous all-time record in 1998.
FIA president John Damgard said: “This level of activity, coming at a time when the US economy has entered a recession, reflects the steady growth in customer demand for the risk management products that our industry provides.”
The FIA primarily attributes the growth in trading volume to a 75% increase in trading activity over the last year at the Chicago Mercantile Exchange (CME). A spokesperson at CME said falling interest rates combined with increased volatilities has led to strong growth in the trading of Eurodollar futures and options.