FIA reports record volumes for futures and options in the US

The volume of futures and options traded on US exchanges so far this year is up by over 15% on last year, and looks likely to set an all-time record in spite of the terrorist attacks in September, said the US-based Futures Industry Association (FIA).

The trade association said futures turnover at US exchanges for the first 10 months of the year reached 515 million contracts, up 25% over the comparable period of last year, while turnover of options on futures and securities increased almost 10% to 747 million.

The FIA, which has been collecting and disseminating US volume data since 1960, claims to act as a principal spokesbody for 180 corporate members within the futures and options industry on legislative and regulatory issues. Acting on the assumption that the current trend continues, it estimates futures trading volume for the whole year will surpass last year’s high volumes and the previous all-time record in 1998.

FIA president John Damgard said: “This level of activity, coming at a time when the US economy has entered a recession, reflects the steady growth in customer demand for the risk management products that our industry provides.”

The FIA primarily attributes the growth in trading volume to a 75% increase in trading activity over the last year at the Chicago Mercantile Exchange (CME). A spokesperson at CME said falling interest rates combined with increased volatilities has led to strong growth in the trading of Eurodollar futures and options.