CME Group reported its busiest July on record as average daily trading rose a quarter on last year while US options clearing house OCC saw clearing volumes rise by 29% on July 2020. 

The Chicago-based exchange group said on Tuesday it saw derivatives average daily volumes (ADV) of 17.1 million contracts for the month, representing a 25% increase on July last year. The exchange said it was the highest year-over-year monthly growth since March 2020.

The increase was driven by higher interest rate and energy monthly ADV, which rose by 96% and 23%, respectively. Interest rate ADV stood at 7.8 million contracts for the month, with energy at 2.1 million lots. Overall options ADV stood at 3.1 million contracts, a 55% increase, amid expectations of rises in US interest rates and escalating oil prices.

The Libor transition in interest rate derivatives has driven a shift in trading across the major exchanges this year. ADV trading for CME's interest rate derivatives referencing the US Secured Overnight Financing Rate (SOFR) rose by 221%, while trading in interest rate options grew 104%.

The news mirrors increases in trading activity reported by the Intercontinental Exchange, which saw year-over-year ADV jump by a third in July.

Separately OCC, which clears the US options market, reported a 29% in total volume for the month of July. The company cleared 794.8 million contracts, a historical record for July. ADV for options and futures stood at 39.1 million lots, a 38% increase on the same month last year, the OCC said on Tuesday.