CME Quick Hits: Energy, Ags, Metals, FX, Equities, & Rates

Energy

Activity in CME Henry Hub Natural Gas Options (LN) is off to a strong start this year with volumes averaging 123k lots per day.

Henry Hub natural gas options are liquid 24 hours/day allowing market participants to trade around the clock. A continuous growth in electronic trading via CMED has created more accessibility that lowers costs and creates capital efficiencies. Click here for more information on the Henry Hub Natural Gas Option (LN).

April 2023 Stats

• Average daily volume is up 15% YoY to 141k/day
• Annual average open interest is 3.4m highest since 2014
• Trading in the front three months is up 54% YoY to nearly 100k/day

Ags

Following record high ADV and OI in Q1 2023, Feeder Cattle Futures and Options achieved additional record ADV and OI for the month of April.

• Feeder Cattle Futures and Options achieved a second place ADV ranking of 21,938 contracts and a second place OI ranking of 119,957 contracts in April 2023.
• Futures: ADV = 19,342 (all time high); OI = 62,093 (all time high)
• Options: ADV = 2,596 (second highest); OI = 64,178 (second highest)

• In Live Cattle Futures, Open Interest jumped up to 351,260 contracts, the highest OI in April.

Metals

COMEX ALI continued its impressive growth with a record-breaking April across the board. Open interest broke through the 3,000 contract threshold and established a new high of 3,626 contracts on April 19^th. During the month we also saw an all-time record volume day with over 9,000 contracts traded and record monthly ADV of over 4,000 contracts in April, +27% vs. March. We also had record participation with over 180 active participants in April, beating the previous record of 166 set in February.

FX

In the newly released FX Report Q2 Edition: Learn how to access what only CME Group FX can deliver. Explore the latest product developments including our newly launched USD/CNH options. Additionally, learn more about the ability to trade FX futures relative to the 4:00 p.m. WMR fixing, forces driving adoption of our products, changes in our market and the wider FX marketplace. For more information and articles:

• Full FX analysis on the record results of FX futures and options
• Case study: Reduce FX overlay manager risk using FX futures
• Article on liquidity and cost to trade in FX marketplace
• Case Study: How to accurately manage your FX fixing risk

Equities

Liquidity in E-mini S&P 500 ESG futures remains strong, allowing market participants to gain price exposure to an index that closely tracks the performance of the S&P 500, while adhering to ESG principles. Q1 2023 ADV at 1.3K contracts and open interest averaging 12.2K contracts. E-mini S&P Europe 350 ESG futures enable market participants to capture benchmark European equity exposure while integrating ESG exposure into your investments. The futures are cash-settled to the S&P Europe 350 ESG Index, a Pan-European index covering developed markets across over 15 countries. The index is considered compliant with Article 8 of the SFDR and uses the same methodology as the S&P 500 ESG Index. Since launch, 3.87K contracts have traded.  Read the CME Group ESG Quarterly Newsletter.

Rates

Treasury Weekly Options Trading at Record Pace

CME’s short-dated Weekly Options on Treasury Futures are experiencing a boom in trading, up 53% from 2022 YTD to an ADV of 343k contracts YTD. This is the highest ADV on record for the contracts through this period.

For some background, Weekly options provide a deep pool of liquidity for market participants to express views on market moving events and economic reports – from FOMC Statements to monthly employment reports – nearly around-the-clock. The short-dated options expire on every Wednesday and Friday of the month, except for those Fridays on which standard serial or quarterly options are scheduled to expire. Product codes below:

One Week CME Group Volatility Index (CVOL) Aggregate Asset Class Variance