Asset managers collectively held a record $207 billion in gross notional open interest at CME Group in August, a 20% increase compared to the same period last year.
The broader numbers tell a similar story. CME reported an average daily volume of 29.7 million contracts in August, making it the second-highest August on record and a 6% improvement year-over-year. Interest rate products led the charge at 16.7 million contracts per day, equity index contracts averaged 6.8 million, and energy contracts contributed 2.3 million.
Treasuries and rates are the main event
The interest rate complex was the undisputed star of the month. US Treasury futures and options saw average daily volume climb 15% year-over-year to 11.8 million contracts. Several individual products set their own records, including Ultra US Treasury Bond futures, which averaged 791,000 contracts per day.
The 20% jump in asset managers’ gross notional open interest captures this dynamic in a single number. Gross notional measures the total face value of all outstanding derivative positions. A $207 billion figure means institutional desks are maintaining larger and more persistent positions in CME-listed products than at any prior point.
Crypto contracts hold their own
CME’s cryptocurrency products posted respectable numbers of their own. Crypto contracts averaged 175,000 per day in August, translating to roughly $7.9 billion to $12 billion in notional value depending on the product mix. CME launched Bitcoin futures back in December 2017, and the product suite has expanded steadily since then to include Ether futures and various micro-sized contracts.
CME’s subsidiary BrokerTec, which handles cash fixed-income and repo trading, also posted strong results. Overall average daily notional value rose 16% year-over-year to $1.059 trillion. European repo activity was particularly notable, jumping 27% compared to the prior year.
What this means for markets
The concentration of growth in interest rate products provides a window into where institutional minds are focused. The 15% year-over-year jump in Treasury futures and options volume suggests that rate volatility, or at least the expectation of it, remains elevated.