Drop in August Eurex volumes masks steady growth

A drop in August trade volumes at Frankfurt-based derivatives exchange Eurex is a result of unusually high volumes in 2007 and disguises steady growth so far this year.

On September 1, Eurex reported a 28% decline in August trades compared with 2007, with total contracts for the month reaching 126.2 million, down from 175.1 million last year. The exchange said that, due to the beginning of the credit crisis, the markets in August 2007 were extremely volatile, and as a result the number of contracts traded was abnormally high. Eurex has in fact experienced an 11% rise in trading volumes for the first seven months of 2008 when compared with the same period last year.

A number of other exchanges have reported similar trends. CME Group in Chicago recorded a total of 231 million contracts for August 2008, down 32% from the same period last year, when heightened activity led to its highest-ever monthly volume. The group is also experiencing steady growth, with a 9% rise in year-to-date trades compared with 2007.

The Oslo-based OMX Nordic Exchange experienced a decline in trades compared with August 2007, with total volume dropping from 14.5 million to 10.6 million. For the year to date, however, volume rose from 109.3 million to 111.5 million. The Hong Kong Exchange reported a drop in futures and options trades, from 11.3 million in August 2007 to 7.8 million this year.