CME FX Link Sees 193% Volume Surge Amid Currency Trading Boom
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Foreign exchange (Forex) trading at CME Group grew well in October 2024. The EBS Spot FX had an average daily volume (ADV) rise of 15%, reaching $58.3 billion.
CME Group’s FX Link platform showed even stronger growth, with average daily volume jumping 193% to 54,000 contracts, worth about $5 billion in total. The whole foreign exchange area saw an average daily volume of 792,000 contracts for the month. This increase added to CME’s total ADV of 24.3 million contracts across all its main markets.
EMEA Led International Trading With 5.4 Million Contracts
International trading remained a big part, with an average daily volume of 7.2 million contracts. The EMEA area led with 5.4 million contracts, Asia followed with 1.5 million contracts, and Latin America added 135,000 contracts.
Other major FX trading platforms showed different results. Japan’s Click 365 saw a 12% drop in volume for October, while Cboe’s average daily volume (ADV) reached $42.8 billion, down from $46.9 billion.
The Senior Managing Director and Chief Commercial Officer at CME Group Julie Winkler gave her opinion regarding the impressive results. She noted that the firm’s record-breaking Q3 international ADV showed big growth in EMEA and APAC, as clients turned to its products to manage risks during unpredictable times.
Apart from Forex, CME Group set other records across its main markets. Interest rate trading had a record October ADV of 12.5 million contracts, up 6% from last year. U.S. Treasury futures were very active, with an October ADV of 5.5 million contracts.
Energy trading also grew, with average daily volume up 16% to hit a record October high of 2.7 million contracts. Highlights included Henry Hub Natural Gas futures, up 22% to 562,000 contracts, and WTI Crude Oil options, up 45% to 282,000 contracts.
Net Income For The Quarter Reached $807.8 Million, Or $2.25 Per Share
The BrokerTec platform saw strength in repo trading, with U.S. Repo daily notional value up 11% to $316.7 billion. European Repo volume rose 1% to €299.7 billion, and U.S. Treasury trading also climbed 1% to $112.8 billion.
In the third quarter, CME Group’s profits rose as traders turned to its products amid market ups and downs. The company had revenues of $1.3 billion and an operating income of $820 million.
Net income increased to $807.8 million, or $2.25 per share, for the quarter ending September 30, up from $710 million, or $1.98 per share, in the same time last year.
CME Group’s Chairman and Chief Executive Officer Terry Duffy stated that CME Group achieved its ninth quarter in a row of double-digit growth in adjusted earnings per share. He added that revenue grew by 9%, as clients came to the firm’s markets to manage risks in a time of rising global uncertainty.
