Deutsche Boerse Tops CME Derivatives Vol In Feb; CME Fees Down
March 03 2009 - 11:18AM
Dow Jones News
Deutsche Boerse (DB1.XE) edged out CME Group Inc. (CME) as the
world's largest derivatives exchange by volume in February amid
signs that the flagging market for interest-rate contracts is
stabilizing.
CME, the Chicago exchange operator, also suffered its first
decline in average rate per contract in more than a year at a time
when cost cutting and revenue diversification are viewed as key to
maintaining profit growth across the financial-exchange sector.
Eurex, the derivatives business co-owned by Deutsche Boerse and
the SWX Swiss Exchange, handled 209 million contracts last month
compared with 206 million at CME.
The Eurex report, issued Monday, includes the contribution from
its U.S.-based International Securities Exchange options business.
CME, which owns the Chicago Mercantile Exchange, the Chicago Board
of Trade and the New York Mercantile Exchange, remains the world's
largest futures platform.
CME, which reported Tuesday, said its rolling three-month
average rate per contract fell to 70.6 cents in January from 71.3
cents in the prior period.
CME shares were recently up 1.5% at $175.82, with Deutsche
Boerse down 2.9% at EUR33.40.
While volumes at the CME and Eurex remain well below year-ago
levels, most products saw sequential increases.
Interest-rate futures, a key product group for both exchanges
that has been hard hit by financial-crisis fallout, inched higher
from January levels at Eurex and rose 16% at CME.
Trading in interest-rate futures has historically driven much of
CME's and Eurex's growth and fueled acquisitions in recent years,
but trading has fallen off following the Federal Reserve's move to
lower its target rate to a historic low, and dislocations between
key spreads have widened in the wake of the financial crisis.
Volume in CME's equity-index derivatives stayed robust through
February, with renewed volatility in stocks boosting trading
activity 15% over January levels and 11% over the prior-year
period.
Equity-index futures represented the most actively traded
segment at Eurex, totaling 66.5 million contracts traded, down from
76 million for the year-ago period. Equity options and single-stock
futures volume were up 15% year-on-year.
CME's foreign exchange and commodity futures also saw increased
trading in January, though both remained lower year-on-year.
February trading on the New York Mercantile Exchange, acquired
by CME last summer, climbed 9% sequentially and 6% over the
prior-year period with volatility in oil markets driving volume in
energy futures and options. Metals trading declined slightly.
-By Jacob Bunge, Dow Jones Newswires; (312) 750 4117;
jacob.bunge@dowjones.com