By Manya Saini
March 27 (Reuters) – Shockwaves from the Middle East conflict have rippled through global markets, driving record trading at Intercontinental Exchange across energy, commodities, futures and options.
The New York Stock Exchange-parent saw its busiest day on record on March 3, with 35 million futures and options contracts changing hands after U.S. and Israeli airstrikes on Iran, it said on Friday.
The conflict shows no signs of easing and has spread across the Gulf, putting key energy supply chains and shipping at risk, especially through the Strait of Hormuz, which carries about a fifth of the global oil flows.
The uncertainty has rippled through oil markets for weeks, leaving investors across asset classes on edge.
ICE said commodity markets have set repeated records for open interest — the number of outstanding futures and options contracts yet to be closed – throughout March, with those reaching an all-time high on March 25.
“In crude oil, ICE operates the most liquid benchmarks across every major producing region in the world,” Ben Jackson, ICE’s president, said.
“Surrounding these benchmarks is a deep set of differential contracts allowing customers to price dislocations across grades and locations globally, a critical ability in today’s landscape as customers manage supply risk, arbitrage flows, and price volatility.”
Volatile markets tend to lift exchange revenues, as investors trade more frequently and turn to derivatives to manage risk, driving higher volumes and transaction fees across asset classes.
It also said equities trading at its flagship New York Stock Exchange, as well as credit default swaps (CDS), hit fresh records on March 20. CDS are derivatives that function as insurance against default, helping investors hedge or transfer credit risk.
NYSE, the world’s largest equities exchange, saw a record 3.57 billion shares traded in its closing auction, with the notional value reaching a record $230.5 billion.
“The NYSE Closing Auction remains the single largest daily liquidity event in U.S. cash equities trading,” the company said.
(Reporting by Manya Saini in Bengaluru; Editing by Shinjini Ganguli)
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