UPDATE: Deutsche Boerse Tops CME Derivatives Volume In Feb
March 03 2009 - 2:09PM
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 210 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% at $175.10, with Deutsche Boerse
down 3.4% at EUR33.27.
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, saw average
daily volume rise 12.5% at Eurex and 16% at CME from January
levels.
Individually, average daily volume in the three major CME
interest-rate products remains sharply lower than year-ago levels,
with Treasury futures and options down 54%. Later this month, CME
hopes to boost volume with the launch of three-year Treasury
futures, supplementing products on two-, five-, and 10-year
Treasury notes and 30-year Treasury bonds.
Trading in CME's Eurodollar derivatives was 49% lower versus the
prior-year period, with fed-funds products off 36%.
Average daily volume in CME equity-index derivatives stayed
robust through February, with renewed volatility in stocks boosting
trading activity 15% over January levels and 11% over February
2008.
Equity-index futures represented the most actively traded
product segment at Eurex, with average daily volume down 1.5% from
January levels and 8.8% below February 2008.
Total February trading activity 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.
Trading at Atlanta-based IntercontinentalExchange Inc. (ICE)
generally held stable through February, as average daily volume
stayed in line with January and year-ago levels across the
company's three futures exchanges in the U.S., Europe and
Canada.
Stronger activity in ICE's agricultural commodities and Russell
2000 equity-index products drove average daily volume at ICE
Futures U.S. about 19% higher than January; average daily trading
activity on ICE's North American markets was 10% lower than
year-ago levels.
Average daily volume on energy-focused ICE Futures Europe fell
after a heavier-than-normal January, but trading activity remained
4% higher than in February 2008.
ICE's three-month average rate per contract edged upward for its
European markets, rising to $1.55 at the end of February. Fees for
ICE's agricultural and financial products in the U.S. were up as
well, at $2.33 and $0.81.
All told, 19.4 million futures contracts changed hands on ICE's
markets for the month, 5% lower than February 2008.
ICE shares recently were up 2.2% at $53.95.
-By Jacob Bunge, Dow Jones Newswires; (312) 750 4117;
jacob.bunge@dowjones.com