Derivatives marketplace CME Groups records a 4% growth in FX ADV last month

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The Chicago Mercantile Exchange Group has released its financial results for January 2023. In the results, the company reported a 4% increase in the average daily volume (ADV) for foreign exchange transactions during the month. The company recorded 807,000 forex contracts traded in the marketplace.

CME Group reports a 4% growth in FX ADV

CME Group is a derivatives marketplace that is based in the US. According to the released financial results, the company saw a healthy growth in its FX operations in January. The volume for forex futures and options traded on the marketplace in January and the total FX futures traded gained by 5% compared to last year.

The company also reported average daily volumes of 4.8 million options contracts traded in January 2023. The Global Head of FX at CME Group, Paul Houston, commented on the financial results saying that the company’s volume growth recorded during the month was triggered by a rise in volatility and higher customer adoption.

“CME Group FX Futures and Options volume in January continued the year-over-year growth trend from the prior year, with volumes supported by elevated volatility and increased buyside customer adoption as exhibited by the growth in positions held by Asset Manager Large Open Interest Holders (LOIH),” Houston said.

The executive also applauded the 4% year-over-year increase in the ADV for listed forex contracts in the marketplace. Moreover, the average open interest for listed FX products in the marketplace increased by 1% in January 2023.

CME Group reports massive growth in SOFR ADV

CME Group also saw a significant increase in the Secured Overnight Financing Rate (SOFR). On January 12, the daily volume of SOFR futures and options contracts traded on the marketplace skyrocketed to 7.56 million contracts. The open interest also increased to 35.7 million contracts on the same day.

According to CME Group, the SOFR ADV increased by 499% by the end of January 2023. The company noted that the monthly SOFR options ADV reached 1.8 million contracts. The data also showed that the open interest reached around 34 million contracts by the end of the month.

The CME Group also reported that the SOFR futures ADV increased by 256%, with the record open interest increased to 9.8 million contracts by the end of the month. CME Group also reported an ADV of 21.7 million contracts in January 2023. This was a 13% gain from the 19.2 million contracts traded on the platform in December last year.

The group also reported 23.3 million contracts last year, which was a growth of 19%. The CME Group also posted gains in other areas such as the equity index, which increased by 39%, the interest rate, which increased by 18%and the forex ADV which increased by 24%. CME Group also surpassed the previous estimates after releasing its results for Q4 2022 and the 2022 fiscal year. The revenues for the two periods reached $1.2 billion and $5 billion, respectively.

 

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Ali is a professional journalist with experience in Web3 journalism and marketing. Ali holds a Master's degree in Finance and enjoys writing about cryptocurrencies and fintech. Ali’s work has been published on a number of leading cryptocurrency publications including Capital.com, CryptoSlate, Securities.io, Invezz.com, Business2Community, BeinCrypto, and more.