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Resurgent rates trading boosts exchanges

04 January 2017

CME and Eurex saw strong interest rate derivatives trading volume late last year

Read more: CME Eurex futures IRS derivatives

A timely surge in interest rate futures trading at the end of last year drove CME and Eurex into positive territory for 2016 while equity derivatives markets had a mixed year, according to new data.

CME, the world’s largest international exchange, reported total 2016 volumes up 12% on the previous year to 3.94 billion lots, driven largely by an increase in interest rate futures trading, particularly at the end of the year.

Interest rate futures trading was up 36% in the fourth quarter of last year and 29% in December, according to the exchange.

Equity indexes had a slower year at the CMC, rising 5% on 2015, while trading at it’s smaller energy segment grew nearly a quarter on the previous year.

Eurex, the largest European derivatives market, also saw strong growth in its interest rate futures segment take the exchange into positive territory for the year, with volumes up 3% on the previous year to 1.73 billion contracts traded.

European interest rate derivatives trading at Eurex was up 16% in December, according to the exchange’s data, while equity indexes trading was down 2% last month and equities derivatives trading fell 14%.

The Frankfurt-based exchange said in a statement: "During 2016, a series of events provoked high volatility in underlying markets and spurred strong demand for Eurex products."

The Options Clearing Corporation, which clears the US equity options market, said its volumes fell 3.3% in December and its total volume for the year was down 1% to a daily average of 16.54 million contracts.

Euronext, the European exchange, said its equity index volume was down 7.9%, and its single stock futures and options activity increased 11.1% last month. Total Euronext 2016 trading was down 6.8% on 2015 to 126.3 million lots.

Some of the world’s top interest rate derivatives exchanges, including Chicago’s CME,  reported record trading after Donald Trump’s November win in the US presidential election.

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