CME reports strong Q2 volume

In its Financial Products quarterly media call for the second quarter, CME Group reported strong volume growth in its financial products. Derek Sammann, managing director, interest rate and foreign exchange products, said that interest rate product experienced strong growth because of volatility borne from recent weaker employment data. CME Group’s interest rate complex volume grew by 6% in the second quarter over 2010 Q2 figures. Interest rate volume in June grew 50% from June 2010. The largest growth came from the short-term interest rate products (STIRs), which grew by 58%, with volume in the Treasury complex growing 44% year-over-year in June.

Sammann added that the European debt crisis has led to volatility in their FX product line, although volume actually decreased 11% from Q2 2010.

Sammann pointed out the CME’s Fed Fund futures have been a “real barometer of rate increases,” and that CME recently launched mid-curve options on Fed Funds that go out six to 12 months. The options launched in May expire six and 12 months respectively before the underlying Fed Funds futures they are based on. Sammann says the products were launched because of customer demand but have not as yet garnered much volume.

Quarterly volume report

Fed Funds mid-curve options

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