Transcript:
This week in the parish of bourses and market structure…
To describe the NASDAQ and Marketaxess results as excellent is almost verging on understatement. My name is Patrick L. Young. Welcome to the bourse business weekly digest. It's the Exchange Invest Weekly Podcast. Number 79.
Good day, ladies and gentlemen, this is a very brief reduction of the highlights amongst the key headlines from the week in market structure. All the analysis of the week’s many events and happenings can be found in Exchange Invest’s daily subscriber newsletter, the unique guide to the bourse business sent daily to your inbox. More details at Exchange. invest.com.
Volume was one of the big stories of the week. Global futures and options trading reached a record level in 2020: that's according to the statisticians at the Futures Industry Association, the. International body for exchange traded derivatives brokers. Global futures and options traded on exchanges Worldwide reached a record level of 46.77 billion contracts in 2020 up an eye watering 35.6% from 2019. Total futures trading rose 32.7%. Total options trading rose 39.3%. Open Interest - measuring the number of outstanding contracts at any point in time - also reached a record high 987.3 million contracts at year end - A billion contract open interest year is in sight. Ladies and gentlemen - That's up 9.7% from December, 2019. Not quite keeping pace with the growth in headline contract volume. Of course, the exchange traded derivatives businesses, sticking to once again, and indeed as my mantra over the past two decades has invariably intoned:
“It's a derivatives world.”
The National Stock Exchange of India are out ahead with the total leadership in contracts a stunning 8.85 billion in 2020 up an astounding 48.1% year on year...While Brazil's B3 jumped into second place up 62 and a half percent to 6.31 billion contracts. Consider for a moment, the impact therein of integrated clearing across the multiple platforms of B3, allowing less collateral to be used by the market practitioners, reducing margins from what used to be a Cinnober technology now owned by NASDAQ.
CME’s fall into third place is a worry. That may sound churlish given 4.82 billion contracts traded in a year, but stasis is an outlier in this fast growing market. How can CME not be profiting from oil volatility? Oh, hold on a second... Or indeed, well, what about huge commodity bullishness to name, but another key sector in which CME don't seem to be profiting at the moment, despite their extensive footprint? ICE, the Intercontinental exchange on the other hand comes in fourth in the overall FIA volume ratings for 2020 derivatives with a 23.6% leap to 2.79 billion contracts...
...Despite their expensive data... while NASDAQ may have left futures behind in the United States at least but their mega robust individual name equity options franchise across the United States of America helped their growth with a stunning 49% jump in a mature market to 2.66 billion contracts.
Execution uptime and efficiency plaudits to the top players who all grew up with Gusto, except sadly, it has to be said for CME, who can only be described as a disappointment, despite their remaining a key market. for volume as the third biggest exchange in the world, per se.
Coming soon in the derivatives world, Abu Dhabi exchange, will be launching an exchange traded derivatives venture within the next three years, as part of their ADX1 strategy announced this week.<...
