The continued investor appetite for equity derivatives helped push global exchange-traded volume higher again in November, according to the FIA’s monthly report released on Monday. The group said 6.17 billion futures and options contracts were traded in the month of November, an increase of 11.5% from October and up 38.8% from November 2020.
On a year-to-date basis, volume for the first 11 months of 2021 totaled 56.44 billion contracts, up 33.8% from the total posted in the first 11 months of 2020. For the month of November, futures volume grew by 12.6% from the same period last year, with 2.71 billion contracts changing hands, and options volume was up a steep 69.8% with 3.45 billion contracts traded.
Total open interest at the end of November was 1.21 billion contracts, a record, the FIA said. On a percentage basis, the monthly open interest total was up 2.6% from October and increased 7.9% from 2020.
In addition to increases in equity index and individual equity products – volume in options on equity indexes saw a surge of 100.7% in November from a year ago to 2.2 billion contracts – interest rate products picked up steam as the Federal Reserve weighed a consistent increase in inflation and moved toward tapering its monthly bond purchases. Volume in interest rate futures was up 29% for the month of November compared with last year, while interest rate options were up 37.5%.
However, some hiccups in the non-stop growth report were evident in a handful of asset classes. Monthly volume in agricultural futures contracts, for example, was down 15% when compared with volume posted a year ago, although that was somewhat offset by more robust trading in ag options, up 28.8%. Energy products also weighed in with mixed volume results, with futures volume down a slight 4.4% for the month and options up a moderate 44.5%.
Precious metals scored declines in both futures and options volume for the month of November, down 22.7% for futures and 1.5% for options.
Finally, regional performance varied, but the options group again led growth totals there. For example, monthly futures volume in the Asia-Pacific region increased by just 2.5% in November, but options volume surged by 114.6%.