The Chicago Mercantile Exchange (CME) has released its January Options Review.
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The report discloses that a record of 4.5 million options were traded on a daily basis, up 32% YoY and signaling a promising start to 2018.
In another positive sign for CME Group, weekly options also set record highs, with an average daily volume (ADV) of 794,000 contracts traded per day, recording an increase of 37% YoY.
FX Options
The scope of CME’s FX Options appears to exhibit positive results. The total ADV for FX Options reached 99,427, representing a YoY improvement of 44%. The currency pair posting the greatest gains in ADV is EURUSD, with a 95% YoY rise to 53,295 contracts per day.
The next biggest mover on the list from January’s trading results was AUDUSD, which saw a 56% increase YoY, with a January ADV of 7,998 contracts per day.
GBPUSD and CADUSD improved as well, each posting a YoY increase in ADV, climbing 36% and 47%, respectively.
Wednesday FX Options
Overall, Wednesday FX Options ADV posted an 83% climb MoM, reaching 6,031 contracts per day. CME Group initially introduced Wednesday options toward the end of last year.
The launch of Wednesday options was facilitated, in an effort to provide traders with a more dynamic trading strategy. Wednesday options allow for a more diversified Risk Management strategy on a more detailed level, by enabling traders to properly and timely react to mid-week news.
Wednesday options differ from the standard options, in that they expire on Wednesdays rather than Fridays. The Wednesday expiry allows traders to materialize gains or losses mid-week, thereby granting them greater control of their exposure and providing them with more leniency in reaction times.
CME’s Expansion into Crypto
News of expanding FX volumes are clearly welcomed for CME Group. In December of last year, CME posted sluggish FX volumes, raising concerns of a diminishing market. However, as evident from January’s report, trading volume is back on the incline, providing a sense of positivity surrounding the outlook for the upcoming year.
Last year also saw CME’s launch of Bitcoin Futures. The American financial market company is rumored to be considering expanding its crypto offerings, to also include Ethereum and Litecoin.
