CHICAGO - The derivatives market has witnessed a significant milestone with S&P 500 AIR Total Return futures hitting a record level of open interest. On November 15, the open interest for these futures reached 414,000 contracts, surpassing the previous peak of 408,000 contracts observed just the day before.
This surge in open interest reflects a 54% increase in average daily volume over the year, signaling a growing reliance on these instruments for risk management. According to Paul Woolman, these futures are increasingly favored by market participants due to their capacity to meet evolving market requirements amid regulatory changes, such as the upcoming UMR Phase 6.
The cumulative open interest represents over $100 billion across prominent global indices, including the S&P and Nasdaq-100. CME Group's (NASDAQ:CME) exchanges have been proactive in offering a comprehensive range of trading options to cater to the diverse needs of investors. This development underscores the importance of derivative products in financial markets, providing tools for investors to hedge against risks or speculate on future movements.
Data supporting these findings was sourced from Morningstar and Zacks Investment Research, with a disclaimer noting that the information is intended for informational purposes and not for trading decisions. The data from the prior peak was obtained through SEC filings available on Edgar Online, which also reminded users of potential delays in information and referenced the User Agreement for further details.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.