FX Futures and Options Volume on CME Peaks with 3 Million Contracts

CME Group (Nasdaq: CME) announced that trading demand for foreign exchange (FX) futures and options on its derivatives platform touched a new single-day record on September 14 as more than 3 million contracts changed hands.

The latest figure came in 7 percent higher than the previous single-day trading record of 2.8 million contracts on 3 December 2020.

The soaring demand in the derivatives markets can also be determined by other market metrics. Additionally, the Chicago-based exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term revealed that the open interest for CME Group FX futures and options peaked on September 8 with over 3.3 million contracts.

“Clients are increasingly accessing the deep liquidity Liquidity The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent Read this Term, as well as the potential capital and cost efficiencies, offered by our FX futures and options products to manage their currency exposure,” said Paul Houston, the Global Head of FX Products at CME Group.

“With the final phase of the Uncleared Margin Rules (UMR) now in play and the Standardized Approach for Measuring Counterparty Credit Risk (SA-CCR) starting to take effect, we have seen strong growth in participation by firms across the trading community.”

Breaking Records

Earlier in June, CME revealed that trading volume with FX Links, which connects the FX futures contract and the OTC FX marketplace, also peaked as contracts worth more than $7.2 billion in notional value were traded. FX Links were introduced in 2018 with an aim to offer OTC FX market participants improved access and utilization of FX futures as part of their overall trading activity.

Meanwhile, the American exchange is expanding its product line to attract a wider range of traders. Recently, it expanded its crypto offerings and is going to launch event contracts, which are similar to binary options, next week.