November 2, 2022CME Group, a derivatives marketplace, reported its October 2022 market statistics, showing average daily volume (ADV) increased 11% to 22.7 million contracts during the month, representing the company’s highest October volume on record.

• Total EBS volumes were up 30% vs. August 2022 and 31% vs. September 2021
• EBS Market G3 is up 49% vs. prior September and up 34% vs. August 2022. USD / JPY was particularly strong and Sept 22 was largest day for USD / JPY on EBS Market since November 2016. Nearly 5 times the average daily volume for USD / JPY for 2022 was transacted including US$18.5 billion (single count) vs. the Japanese Yen in the single hour between 8am and 9am GMT.
• CME Group listed FX ADV activity in contracts was up 42% year-on-year in October 2022 compared with October 2021.
• Average open interest in CME Group listed FX products was up 14% year-to-date versus same period 2021.
• Volumes in Blocks and EFRPs of CME Group listed FX futures and options contracts were up 83% year-to-date 2022 versus same period 2021.

Jeff Ward, Global Head of EBS commented: "EBS Market has seen strong overall performance in September vs. both prior month and September 2021, continuing to reflect the value and role of the primary market central limit order book in managing risk in more volatile and uncertain market conditions."

Paul Houston, Global Head of FX, CME Group said: "CME Group FX Futures and Options volume in October continued the strong year-over-year growth trend seen to date. Volumes continue to be supported by heightened FX volatility levels and increased customer adoption as exhibited by the growth in open interest and buyside."

Erik Norland, Senior Economist, CME Group commented: "The U.S. dollar, which had rallied consistently versus most foreign currencies from June 2021 to September 2022, appeared to hit a wall this October. The forces that drove the dollar higher may be shifting in favor of other currencies. For starters, the Fed, which had been tightening policy much more quickly than most other central banks, may now be the first major bank to pivot to a slower pace of tightening while its peers continue to catch up with a fast pace of rate hikes. Secondly, lower Eurasian prices for natural gas in October eased concerns that the European and Japanese economies would severely underperform the U.S. this winter. Finally, the U.S. budget deficit, which had been contracting more quickly than deficits in Europe and Japan, will likely now stabilize at around 4.5% of GDP and potentially begin to grow government borrowing costs rise."