ICE trading activity jumps a third in July

Derivatives trading volumes on Intercontinental Exchange (ICE) rose by a third year-over-year, driven by increases in both energy and financial derivatives.

The average daily volume (ADV) for the month of July went from 4.2 million lots to 5.6 million lots, representing a 33% increase compared to the same month last year, according to statistics released showing total futures and options activity for the month.

The Atlanta-based exchange group published reports that said the total volume of traded futures and options was 118.8 million lots, up from 93.4 million lots at the same time last year. This represents a 27% in July. 

The increase was driven by increases in both energy and financial derivatives. ADV within the financials segment, which includes interest rate derivatives, was up 51% to 2.3 million contracts. For the energy complex, a 23% increase to 2.9 million lots was reported.

Market volumes have shifted to new alternative reference rates ahead of the shift from Libor at the end of this year. ICE reported a record volume in July for Sterling Overnight Index Average (SONIA) options at 96,811 lots and a record ADV at 4,401 lots. Within energy UK emissions trading has gathered hitting volume and ADV records at 20,943 and 997 lots respectively.

Adoption of US Secured Overnight Financing Rate (SOFR) based derivatives have spiked in the second half of July as regulatory moves encouraging adoption have accelerated ahead of the deadline for the switch to alternative reference rates for new contracts.

CME reported a record for SOFR futures on its exchange at the end of last month.