As reported in the global financial media during Q1 2008, the derivatives industry, one again grew exponentially in 2007, with most exchanges enjoying record annual volumes.
Many derivatives exchanges are predicting 2008 to be yet another big year in terms of volume and growth.
CME Group saw 2007 achieve record annual volumes with almost 2.8bn contracts changing hands. Daily volume in 2007 averaged 11m contracts, up 28% from 2006. Total electronic volume averaged 8.5m contracts per day, up 41% from the previous year.
Intercontinental Exchange (ICE) saw record annual volume through 2007 both on exchange and in its OTC markets. ICE Futures Europe achieved record annual volume for the tenth consecutive year, with an increase of 49% in 2007 over annual volume in 2006.last year, volume at ICE Futures US exceeded 2006 results by 22%. Among the milestones reached in 2007 was ADV on ICE Futures Europe reaching 469,407 contracts traded in December 2007, an increase of 19% over December 2006. ADV for the 12 months ended December 31, 2007, was 539,044, up 44% over 2006. ICE Futures Europe reported total volume in December 2007 of 9.39m contracts, up 19% from 7.9m contracts in December 2006. ADV at ICE Futures US was 208,073 contracts in December 2007, up 31% from December 2006. ADV for the full year was 214,816 in 2007, a 23% increase compared to 2006. Total futures and options volume at ICE Futures US increased 25% to 3.97m contracts in December 2007, compared to volume of 3.18m contracts in December 2006.
Eurex edged ever closer to the 2bn mark for the year trading 1.9bn contracts in 2007.
The record figure beats the previous record, set in 2006, of 1.5bn contracts. The total volume corresponds to a daily average daily volume of 7.5m versus 6m 12 months earlier.
The year saw several highlights including its fixed income derivatives segment reaching a total of 771m contracts compared to 731m in 2006.
Chicago Board Options Exchange (CBOE) had its busiest year with 2007 saw a total of 944.47m contracts trade. The figure surpassed the 674.74m contracts traded in 2006, the previous record, by 40%. Average daily volume of 3.76m contracts during 2007 established a new all-time high, beating 2006's 2.69m contracts per day.
CBOE Futures Exchange
(CFE) also recorded its busiest year in its four-year history as volume totalled 1.14m contracts traded, an increase of 138% over 2006's volume of 478,424 contracts. The total was the first time that CFE's annual volume exceeded the one million contracts traded mark.
Options Industry Council
(OIC) saw 2007 set new volume records with a total of 2.86bn contracts change hands, surpassing 2006’s record by 41.18%. Equity options volume reached 2.59bn contracts, exceeding the 1.84bn total equity options volume contracts traded in 2006 by 40.56% percent.
Information source FOWeek