Q2 2019 Metals Update

  • 27 Mar 2019
  • By CME Group
  • Topics: Metals

Copper Options (HX) Record Growth Continues

  • Designed to provide capital and cost efficient risk management of copper exposures, HX average daily volume has grown from 100 contracts in 2016 to over 3,092 contracts in Q1, 2019. 
  • Set a daily volume record of 12,533 contracts on February 20.
  • Open interest continues to build, hitting an all-time record of 67,510 on March 25.
  • Liquidity continues to increase, as measured in both bid/ask spread and depth of book.

Liquidity Summary

Currently

Jan-Jun 17

Avg bid/ask in volatility

0.50%

3.00%

Avg bid/ask in premium (US $/lb)

0.0035

0.0180

Avg top of book quantity (lots)

75-100

5-10

ADV

3,092/day

180/day

Avg OI

60,000+

4,000

More on Copper Options

Transparent Electronic Price Discovery for the Global Reference Price


Expansion of TAS Functionality Increases TAS Volumes

  • Additional TAS eligible months now available for trading in GC, SI, HG, PL and MGC contracts.
  • New TAS Spread functionality enabled between all available TAS contract months.
  • Gold TAS average daily volume of 3,362 contracts in January 2019 was a record, up nearly 300% YoY. 

Implementation of Dynamic Circuit Breakers Set For April 1, 2019

Circuit breaker levels will now be set as a percentage of dynamically established reference price instead of a static dollar figure.

Utilizes 60-minute look back periods to establish a dynamic price limit ranges.

Promotes continuous price discovery with less market disruption.


Gold and Silver Weekly Options: Important Tools for Managing Short Term Risk

Flexibility Gold Weekly Options average daily volume has grown from 100 contracts in 2015 to over 3,000 contracts in Q1 2019.

Key Benefits

Flexibility to manage short-term volatility and risk.

Precision timing to target specific market movements or events.

More expirations (4 weeklies and 1 monthly); more options to limit exposure.

Shorter expirations to gain market exposure at a lower premium.

American style with automatic exercise.
 

Year

ADV

YoY

2015

94

 

2016

237

152%

2017

758

220%

2018

2,113

179%

2019 YTD

3,083

46%

 

More on Metals Weekly Options


Quarterly Strips and Inter-Commodity Spreads are Active on Globex for Hot-Rolled Coil Steel (HRC) and Busheling Steel Scrap (BUS) Futures

Approximately 30% of HRC and nearly 50% of BUS volumes are now being traded electronically, ensuring transparency

HRC hit record average daily volume of 1,033 contracts in January, equivalent to $15m average per day in notional value

Download the Steel futures and blocks grid now for CME Direct from the Steel webpage.

U.S. Mid-West Hot Rolled Coil Steel (plats) 

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