In this report
Subscribe to get the latest updates
Aluminum liquidity, volume, and open interest all increase in Q2
CME Group Aluminum futures contracts continue to see robust liquidity, especially in spreads, and are increasingly being used as a hedging tool for buyers, producers, and traders looking to manage aluminum price risk.
Volume hit a record in Q2 with average daily volume (ADV) of over 4K contracts, up 179% year-over-year. Open interest (OI) hit a new high of 3,886 on June 21, with over 275 unique counterparties active in the quarter.
Heightened volatility brings market participants to Gold Weekly options
Gold Weekly options can offer multiple advantages for those who are looking for exposure to gold or simply need the support of a more precise hedge.
Gold Weekly options have traded on average 14K contracts per day in 2023, up 33% YTD. Liquidity in the nearest four Monday, Wednesday, Friday Gold Weekly options has developed to the same level as the standard monthly options, offering opportunities when there is macroeconomic volatility.
Lithium Carbonate CIF CJK (Fastmarkets) futures
As lithium demand rises, so does associated price risk. The electrification of transport and energy generation systems continues to drive a sustained increase in battery metals demand.
CME Group launched a second Lithium futures contract providing market participants with more choice for their battery metals hedging needs.
Lithium Carbonate CIF CJK will offer price transparency and efficient risk management. The contract will be financially settled using Fastmarkets' battery-grade Lithium Carbonate CIF China, Japan, and Korea spot price assessment, provided by Fastmarkets, a leading commodities data provider.
Looking for pools of liquidity in battery metals?
Cobalt futures, launched in December 2020, have seen steady growth. On average, 138 contracts have traded daily in 2023, an increase of 224% year-to-date.
Open interest has seen equally impressive growth and currently stands at 20K contracts, four times more than in June 2022.
Micro gold, silver, and copper continue to shine in Q2
Micro contracts at CME Group are smaller-sized contracts, which allows a broader range of market participants to access the gold, silver, and copper markets.
Combined average daily volume (ADV) for Micro Gold, Silver, and Copper futures is 90K contracts, up 39% compared to the same period in 2022.
Launched just over a year ago, micro copper has seen phenomenal market adoption, trading on average 5K contracts per day, up 413% compared to June 2022.
Have you seen Copper options liquidity lately?
Copper options volume increased twofold in H1 2023, partly fueled by the easing of lock-down measures in China and associated market volatility. ADV has surpassed 6.5K contracts, with 120K contracts of open interest, which has resulted in a sharp increase in on-screen liquidity across monthly options.
Bid/ask spreads have been close to 0.5 implied vol wide on outright options.
CME Group Precious Metals Dinner 2023
Precious Metals Dinner returns to the exquisite Gotham Hall on Wednesday, September 13, 2023, from 6:00 p.m. to- 10:00 p.m.
We are excited to announce Ian Bremmer as this year’s keynote speaker. Ian Bremmer is a political scientist, president and founder of Eurasia Group, a prolific writer of eleven books, and he serves as the foreign affairs columnist and editor at large for Time magazine
Steel futures on pace for a seventh year of growth
The steel market continues to evolve and as such more participants are seeing the benefits of hedging steel price exposure.
On pace for a seventh record year, Steel futures are trading on average 1.4K contracts per day, with 28K contracts of open interest, providing market participants the liquidity needed to manage their price risk.
OpenMarkets: Did Banking Failures and the Debt Ceiling Debate Affect Gold?
Gold prices have remained flat following the debt ceiling compromise, while the effect of banking failures on gold is difficult to measure. A look at how Gold futures markets have responded to similar scenarios of economic uncertainty.
OpenMarkets: Why Gold options are gaining momentum?
Gold options trading has soared in 2023 as traders seek opportunities amidst rising volatility. CME Group weekly options are gaining popularity as a way to manage risk with interest rate uncertainty hanging over the economy.
All examples in this report are hypothetical interpretations of situations and are used for explanation purposes only. The views in this report reflect solely those of the author and not necessarily those of CME Group or its affiliated institutions. This report and the information herein should not be considered investment advice or the results of actual market experience.
