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Q1-2023 APAC Highlights

“Asia Hours” from 6am-5pm SGT

Economic Outlook (Page 3)

  • The US Fed has indicated short term rates will remain elevated in 2023 which is in contrast to the view of the federal funds futures market which is indicating cuts beginning in the second half of 2023.
  • Gold has benefited from uncertainty in the Fed policy decisions as well as geo-political risks, with the trading range around the $2,000 per ounce during Q1-2023.
  • Oil Markets are in flux as Saudi Arabia and Russia have cut production resulting in higher prices.  Long-term prices remain lower than spot prices in part to demand concerns stemming from a potential US economic recession in 2023/2024 as well as China’s slower-than-expected economic recovery from its Covid-Zero policy.

Volume Summary During Asian Hours

  • Total Average Daily Volumes in Q1-2023 during Asia Hours: 2.578M (-13% vs Q1-2022)
    • Overall, the top customer segments during Asia Hours: Hedge Funds (+34% vs Q1-2022), Asset Managers (+20% vs Q1-2022)
  • Futures Volumes in Q1-2023 during Asia Hours: 2.2M (-16% vs Q1-2022)
    • Metals Futures led all asset classes in YoY growth with +9% YoY, followed by FX Futures +7% YoY
  • Options Volumes in Q1-2023 during Asia Hours: 358k (+16% vs Q1-2022)
    • IR Options (+39% YoY) led all asset classes in YoY growth, followed by Metals Options +8% YoY

Top 5 Futures Products by YoY QTD ADV Growth (Page 4)

  • Three-Month SOFR Futures (258% vs Q1-2022)
  • One-Month SOFR Futures (124% vs Q1-2022)
  • Fed Fund Futures (33% vs Q1-2022)
  • Japanese Yen Futures (29% vs Q1-2022)
  • E-Mini Natural Gas Future (18% vs Q1-2022)
Original report published on CME Group.

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