More trading (volume) trends
Volumes on the CBOE continue to go from strength to strength. As reported in on eFinancial News last week, average daily volume for 2006 stands at 2.5 million contracts up 49% from 2005’s 1.86 million contracts per day average (which itself was up 30+% from 2004 volumes.) This includes a record day last week when 5.7 million contracts were traded.
Industry leaders see no sign of this growth abating. The CEO of CBOT (Bernard Dan) predicted that as many a 200 billion derivative contracts could be traded annually by 2015. (In 2005, approximately 10 billion contracts were traded globally.) A board member of Eurex was a bit more cautious predicting 100 billion, while the CEO of Euronext.liffe suggests that volumes will quadruple every 5 years - a futures and options version of Moore’s Law? …Freedberg’s law anyone?
