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Trading interest in the futures and options markets managed by Intercontinental Exchange (ICE) has reached a record level this week. The increased interest coincides with a volatile year for global energy markets. The record number of open investment contracts at ICE reached 86 million contracts following rising interest in commodity and energy contracts on the exchange, reflecting a 21% increase since the beginning of the year compared to the same period in 2022.
Trading News
Trading interest in the futures and options markets on the Intercontinental Exchange (ICE) trading platforms has reached a record level this week, the exchange reported. Open contracts, or the amount of outstanding investment contracts, reached 86 million contracts on Wednesday, according to ICE, surpassing the previous record of 85.8 million contracts set on June 10, 2021.
The record number represents the increasing interest in commodity and energy contracts at ICE, where open contracts have risen by 21% since the beginning of the year compared to last year. This increased interest has coincided with a relatively volatile year for global energy markets.
Brent crude oil, the global benchmark for oil markets, traded within the range of $80 per barrel in January but fell to around $70 amid global banking crisis tensions in March. A month later, it rose again to about $80, then fell back to the $70 range at the end of June, before rising to approximately $90 at the end of September.
At around 2:30 PM Eastern Time on Friday, January Brent futures were trading at about $76.50 per barrel.
Trapido Bland, Senior Vice President of Futures Markets at ICE, stated that the record reflects an increasingly complex and diverse global commodities market, driving clients to “seek liquidity and derivative products that allow for more precise hedging across asset classes.”
Traders use futures and options contracts on commodities to hedge their supply and demand needs and the costs associated with the actual buying and selling of commodities. Speculators, who have no interest in owning the actual commodities, provide additional liquidity to the market.
ICE shares fell slightly in trading on Friday but have risen by nearly 20% so far this year.
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Intercontinental Exchange Inc. “ICE Reports Record Total Futures and Option Interest of 85.8 Million Contracts.”
Businesswire.com. “ICE Reports Record Total Futures and Options Open Interest of 86 Million Contracts.”
Oilprice.com. “Oil Price Charts.”
Oilprice.com. “Brent Crude Oil Futures And News.”
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