Futures And Options Trading Up Globally

Brad Zigler

The Futures Industry Association, a Washington, D.C.-based trade group, released its annual report Monday showing that worldwide trading volume of futures and options grew 28% last year to 15 billion contracts.

North America accounted for the largest share - 40% of global volume - growing 33% to 6.14 billion contracts. The Asia-Pacific region came in second, rising 19% to 4.19 billion contracts traded in 2007.

U.S. growth was driven primarily by consolidation. Trading on The Chicago Mercantile Exchange and the Chicago Board of Trade, now combined as the CME Group (NYSE: CME), expanded 27% year-over-year, becoming the world's busiest derivatives mart.

Volume on the Atlanta-based InterContinentalExchange Inc. (NYSE: ICE) ballooned 40% in 2007. ICE now owns three bourses in as many countries.

Commodity product trading burgeoned last year, with agricultural futures and options volume rising 32%. Energy trading increased 29% and dealings in industrial metals grew by 30%. Expansion of electronic trading platforms, increased interest in biofuels and keener interest in commodities among institutional investors all factored into the growth spurt. Volume in precious metals, oddly enough, lagged, as higher volumes in New York's COMEX marketplace were partially offset by declining trade in Tokyo.

Despite this, the Asia-Pacific region appears poised to drive volumes going forward. China hasn't thrown open the doors to its markets to foreign investors, but has still become a big futures player, especially in agriculturals and metals. Most notably, volume on Hong Kong bourses more than doubled in 2007.