CME Group has announced that open interest in copper options has surpassed 200,000 contracts, marking a significant milestone after several consecutive daily records. The top five open-interest Copper option (HX) records have been established.
During the week of March 18 to March 22, copper options trading experienced successive daily open interest records, with contract volumes peaking at 209,994 on Friday. Moreover, on March 13, 2024, copper options reached a new single daily volume record of 52,578 contracts. This figure doubles the previous record set on May 10, 2021, according to a press release by CME Group.
"In today's uncertain environment, market participants are turning to the robust on-screen liquidity of our options markets to express their views on copper, a key bellwether of the global economy," said Jin Hennig, global head of metals at CME Group. Hennig added that "This open interest milestone reflects strong global demand for these products as clients work to effectively manage their industrial metals price risk around the world."
Copper futures serve as a risk management tool and provide price mitigation for various market participants. They are particularly favored by the investment community. As part of the U.S. market infrastructure, copper serves as a primary benchmark across the global copper value chain. Furthermore, the CME Group Volatility Index (CVOLTM) provides insights into forward-looking risk expectations for copper through a robust measure of 30-day implied volatility derived from options on copper futures. This information is according to the Base Metals futures webpage provided by CME Group.
CME Group offers trading services in futures, options, cash and over-the-counter markets. The company provides global benchmark products across multiple asset classes such as interest rates, equity indexes, foreign exchange, energy, agricultural products and metals. Additionally, CME Group offers datasets to enhance trading strategies and risk mitigation efforts according to the About webpage provided by CME Group.