Q1 2020 Metals Update

  • 3 Jan 2020
  • By CME Group
  • Topics: Metals

2019 In Review: A Record Year for CME Metals Products

  • Combined Futures and Options Average Daily Volume (ADV) was 668,327 contracts in 2019, a new record. Metals F&O have now set annual volume records in 4 consecutive years. Average combined Metals Open Interest of 3,662,788 contracts also set a record in 2019, showing consistent growth as volume increased.
     
  • Gold Futures Open Interest set a record on December 31 of 786,166 contracts.
  • Multiple individual products set ADV records during 2019, including Gold Futures, HRC Steel, and Gold and Silver Options.

Metals

Products

2019 ADV

% YoY

Gold

 Fut

343,288

+8%

Opt

59,698

+28%

 Weekly Opt

6,628

+214%

Silver

 Opt

8,763

+20%

 Weekly Opt

349

+223%

Platinum

 Fut

23,263

+7%

Micro Gold

 Fut

22,650

+217%

Copper

 Opt

2,797

+100%

HRC

 Fut

690

+45%


Shanghai Gold Futures Contracts Debut with Deep Liquidity and Robust Volume

  • Since their debut on October 14, a combined 42,719 contracts have traded in the SGU (USD Denominated) and SGC (CNH) contracts. 
  • As the contracts are financially settled to Shanghai Gold Exchange’s spot benchmark price, the spread traded between SGU/SGC and GC has been closely tracking the original onshore/offshore differential.
    Read the article.
  • Shanghai Gold (USD) futures and Shanghai Gold (CNH) futures are financially settled, based on the SGE Shanghai Gold Benchmark PM price. For final settlement, the Shanghai Gold (USD) contract utilizes the EBS CNH benchmark for currency conversion. 

Use COMEX Copper Options to Manage Copper Price Risk

  • Copper options average daily volume in 2019 was 2,812 contracts, up 101% YoY.
  • COMEX Copper options can offer simple and efficient execution directly on competitive live-market quotes on CME Globex with affordable, transparent exchange fees with potential margin offset savings.

COMEX Aluminum Suite Continues to Grow

  • CME’s physically deliverable Aluminum Futures contract continues to gain traction, with Q4 average daily volume reaching 139 contracts (3,475 metric tons), aggregate open interest exceeding 500 contracts (12,500 metric tons), and material held in COMEX registered warehouses rising above 20,000 metric tons. 
  • Market participants can benefit from a deep and transparent order book, narrow bid-ask spreads, after-hours liquidity, and the ability to utilize various electronic order types such as GTC’s. 
  • 2019 Average Daily Volume across CME’s suite of Aluminum Futures contracts was 671 contracts, up 9% vs 2018 (Q4 1,057 up 82% vs Q4 2018).
  • Globex activity in CME’s suite of Aluminum Premium contracts surged in Q4 2019 with more than 196 contracts traded electronically on CME Globex, +545% YoY.

Communicate Directly with Aluminum Market Participants via CME Chat

  • CommodityDirect, a new messaging and market information tool available in CME Chat, provides market participants a clearer view of the aluminum price and volume throughout the trading day. 
  • The platform enables you to communicate directly with other Aluminum market participants along the supply chain.

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