CME Group Records Marginal Uptick in September’s FX Demand

US derivatives giant has published its training volumes for the month of September and also the last quarter, showing mixed market demands across various segments.
Demand for foreign exchange (forex) contracts marginally went up by 1.7 percent month-on-month as 829,000 such derivatives contracts changed hands in September. FX also recorded a healthy uptrend as trading of these derivatives continuously went up in the last four months.

However, FX performance for Q3 2020 lagged behind the sector’s demand a year ago as quarterly derivatives demand contracted by 3 percent when compared with the same quarter in 2019.
Additionally, the monthly average daily volume (ADV) for September decreased by 5 percent year-on-year.
CME sells forex contracts via CME Globex, the common platform where all other assets are listed, and negotiates privately with interested parties as well. Although, the majority of the trading happens on the electronic trading platform.
Meanwhile, CME is further improving its offerings on forex and launched a new , allowing market participants to price the exchange-listed FX options liquidity in OTC terms.
Metals Are Shining Too
Apart from forex, surged significantly over the recent months. With a continuous uptrend, 825,000 metal contracts were traded in September compared to 755,000 contracts in the previous month.
When compared quarterly, metals demand saw a marginal 1 percent growth year-on-year. Though, the monthly ADV of metals decreased 10 percent.
According to the published data, the exchange saw a massive year-on-year quarterly spike in equities demand with a rise of 38 percent. However, the segment gave a dull performance over the recent months.
Overall, CME’s September ADV decreased marginally month-on-month, but the quarterly numbers went down by 23 percent when compared with the third quarter of the previous year.

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