Investors are flocking to so-called "zero day" options and investors are calling for longer trading hours so they can trade in the evenings and on weekends. Both trends could lead to further growth in trading volumes, but at a cost. Industry executives warn that longer trading hours will increase the operational burden on brokers, clearing firms, market makers and exchanges. The same challenge arises with adding more expirations to support the zero day trend; the industry is already dealing with a huge number of contracts and adding more will put further strain on its capacity.
CONTINUE READINGFIA, joined by ISDA, has responded to the CFTC’s notice of intent to renew the collection of large trader reporting (LTR) data for physical commodity swaps. The associations reiterate and build on requests they have made in recent years for the CFTC to sunset the LTR rules for swaps, which were envisioned as a temporary measure while the CFTC stood up its comprehensive swap reporting framework under Dodd-Frank.
CONTINUE READINGSenior executives for two of the largest market operators in the US options industry sounded a note of caution on the boom in the trading of options with zero days to expiration, saying that brokers and exchanges should carefully consider the costs and benefits before extending this trend into single stock options.
CONTINUE READINGOn 10 May, the US Commodity Futures Trading Commission voted 3-2 to advance a highly anticipated and contentious proposed rule regarding event contracts. The proposed rule advanced with the support of CFTC Chairman Rostin Behnam and Commissioners Kristin Johnson and Christy Goldsmith Romero. Republican Commissioners Summer Mersinger and Caroline Pham raised significant concerns about the proposal during an open meeting and opposed the proposed rule.
CONTINUE READINGThe total amount of customer funds in futures accounts at US FCMs reached $337.8 billion in March, up 1.7% from the previous month but down 1.5% over the last 12 months.
CONTINUE READINGIn the two years after the London Metal Exchange was forced to close its nickel market and cancel $12 billion in trades, the exchange has worked hard to win back the confidence of market participants through a number of reforms. Trading volumes are rising again, but open interest has not fully recovered, and two new competitors have emerged.
CONTINUE READINGFIA’s quarterly review of volume and open interest on derivatives exchanges worldwide. This webinar will provide insights into trends in trading activity in the global listed derivatives markets.
CONTINUE READINGTrading volume on swap execution facilities reached $1.17 trillion in average notional value per day during March 2024. This was down 5.6% from the previous month and down 8.3% from the same month of the previous year.
CONTINUE READINGThe total amount of customer funds in futures accounts at US FCMs reached $332.2 billion in February, down 0.9% over the last 12 months. The number of FCMs holding customer funds in futures accounts was recorded at 47 in February, same as a year ago and down from 53 five years ago.
CONTINUE READINGWorldwide volume of exchange-traded derivatives reached 14.84 billion contracts in March. This was down 8.9% from February 2024 but up 40.4% from March 2023.
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