(Adds data from IntercontinentalExchange Inc. in the sixth and
seventh paragraphs.)
CME Group Inc. (CME) reported May daily trading volume fell 20%
from the all-time high reported for the year-earlier month, while
IntercontinentalExchange Inc. (ICE) posted a 0.8% decline.
Ongoing credit issues faced by European nations drove widespread
hedging in the world's major derivatives markets late last spring,
leading to surging volumes at CME and peers such as NYSE Euronext
(NYX) and Deutsche Boerse AG (DB1.XE). May 2010 was also a big
month for stock volatility as massive moves during the May 6 "flash
crash" stoked market fears.
Last month's drop comes as CME, the world's biggest derivatives
exchange operator by contract volume, had seen volume boosted
lately by political turmoil in Northern Africa and the Middle East
alongside the March 11 earthquake in Japan, roiling energy and
fixed-income markets.
CME said Tuesday its daily volume averaged 13.5 million
contracts in May, which was an 11% increase from April. A record
85% of last month's total 283 million contracts were traded
electronically.
Daily volume for interest-rate futures, CME's biggest product by
that metric, fell 20% from a year earlier to 6.5 million contracts
a day. Equity index volume plunged 35% while foreign exchange had a
26% decline.
Later Thursday, ICE said its daily volume averaged 1.4 million
contracts, which was a 12% increase from April.
Volume in its biggest product, Brent crude futures and options,
rose 18% year on year. Gasoil futures and options reported a 17%
increase, but WTI Crude volume was down 20%.
Last month, ICE and Nasdaq OMX Group Inc. (NDAQ) pulled their
$11 billion counterbid for NYSE Euronext (NYX), after U.S.
antitrust authorities threatened to block the effort. The surprise
move eliminated a major hurdle in the Big Board's plans to merge
with Germany's Deutsche Boerse AG (DBOEF, DB1.XE).
CME's Class A shares closed Wednesday at $277.87 while ICE
finished at $116.61. Neither was active premarket.
-By Matt Jarzemsky, Dow Jones Newswires; 212-416-2240;
matthew.jarzemsky@dowjones.com