CME Group, one of the largest derivatives marketplaces in the world, has announced the monthly market statistics for June which shows that it has reached an average daily volume (ADV) of 18.4 million contracts for both the second quarter of the year and also for June.
When compared to the second quarter of 2020, the biggest change in the ADV can be seen in the interest rates which have shown an increase of 25% from the same period of last year. Forex ADV has increased by 6% from 725,000 contracts for last year to 769,000 contracts for this year.
Continuing the trend of increasing interest in crypto, the exchange had a record ADV for Bitcoin futures and options of 26.575 contracts while the ADV for Ether futures was 3740 contracts over the second quarter of this year. The metals ADV grew by 9% from 519,000 contracts in Q2 of 2020 to 568,000 contracts in Q2 of this year which presents a healthy increase, especially in the copper options.
The equities seem to be the hardest hit as their ADV fell by 12% for the second quarter in 2021 as compared to the same period last year. This could be attributed, in a sense, to the pandemic and also to the increase in the number of choices in instruments that traders now have. With the launch and growth of crypto in recent years, some of the focus has shifted to that industry and with chances of a better return in that, more investors are likely to move there, at least for the short term, to try their luck.
The monthly ADV for equities fell by 28% for June when compared to last year and this presents a drastic fall in the volumes though the overall ADV for the month grew by 7%. This is likely to be a common trend across the globe as traders look to try out new markets and instruments in the hope of better returns. It may also be time for the equity markets to begin to innovate themselves with more and better products that are likely to attract investors and traders though it is easy days yet.
We will have to wait and see whether this becomes a trend in the coming months and if it does, it should be a concern for the exchanges as the equity markets fail to pick up in trading volumes even though the pandemic has been receding in many parts of the world.