Not surpisingly, given market expectation and the Fed rate hike, volumes for Interest Rate derivatives were up significantly in 1Q2017
Volumes in interest rate futures and swaps reached new records during the first quarter, with expectations of a rate hike in the US, the end of quantitative easing, and regulation driving trading. CME Group, which operates the largest interest rate derivatives exchange, recorded 421.7 million interest rate futures trades during the quarter, up 12.6% year-on-year. It also saw a record quarterly average daily volume of 9.2 million interest rate contracts per day. Meanwhile, Frankfurt-based Eurex saw around 167 million listed interest rate derivatives traded in the first three months of the year, up 26.8%. Traders in both the US and Europe have increased their use of listed derivatives since November last year as a way to hedge their risk to anticipated decisions over interest rates from both the US Federal Reserve and the European Central Bank.