CME Group, the world's leading derivatives marketplace, reported record-breaking foreign exchange (FX) futures trading volumes for the second quarter of 2024, with significant growth across multiple currency pairs.
Forex Volumes Surges at CME Group in Q2 2024
Foreign exchange average daily volume (ADV) reached 1.1 million contracts in Q2, marking a 20% increase compared to the same period last year. The surge in CME Group’s FX trading activity was driven by heightened market volatility and increased hedging demand amid global economic uncertainties.
Year-to-date, the growth was 10%, compared to the first six months of 2023, during which the ADV was around 934,000 contracts. The largest increase, as much as 25%, was noted on a monthly basis. In June 2024, the average daily volume for FX futures and options was nearly 1.4 million contracts, more than the 1.1 million reported in the same month the previous year.
CME may owe its strong currency results in part to a record day of investor activity on June 12, when the exchange handled the trading of 3.26 million FX futures contracts.
Several currency futures contracts also achieved all-time highs during the quarter. Canadian dollar futures set a new record with an ADV of 112,200 contracts. Mexican peso futures also reached unprecedented levels, with an ADV of 90,481 contracts. Additionally, New Zealand dollar and Brazilian real futures both hit record volumes, reflecting growing interest in emerging market currencies.
The results align with those reported this week by FXSpoStream as well. In its case, spot FX volume grew by 39% year-on-year, and the ADV surged by 85% to $14 billion. However, a decline in activity was noted in other reported venues.
CME Reports Recor Q2 2024 and June Trading Volumes
The strong performance in FX futures was part of a broader trend of record-setting volumes across CME Group's product lines. The exchange reported an overall record Q2 ADV of 26 million contracts across all asset classes, with growth observed in interest rates, equity indices, and commodities. For June itself, the ADV stood at 25.3 million contracts, an 8% increase compared to the same month last year
Interest Rate products led the surge, with ADV climbing 11% year-over-year to 11.5 million contracts in June. US Treasury futures and options hit a record 7 million contracts per day, driven by a 29% jump in 10-Year Treasury Note futures and a 78% spike in related options.
International participation also reached new heights, with a record ADV of 8.1 million contracts from non-US. traders. This included an all-time high in European, Middle Eastern, and African (EMEA) trading activity, which saw ADV climb to 6.2 million contracts.
According to the exchange's 2023 report published in February, its total revenue increased to $5.6 billion, and operating income amounted to $3.4 billion.
