ELX Futures, L.P. (ELX), a leading electronic futures exchange offering market competition in U.S. Treasury and Eurodollar futures contracts, announced today its 2010 year-end results.
Total volume exceeded 13MM contracts for the year, with ADV surpassing 47K contracts in U.S. Treasury futures, an increase of 14% from 2009. ELX's Eurodollar futures contract, which was launched in June 2010, established several record-breaking milestones. By December, ADV reached over 18K contracts traded with an open interest (OI) exceeding 200K contracts. From the third quarter of 2010 (the contract's first full quarter) to the fourth quarter of 2010, ADV grew by 390%, average OI by 771%, and market share by 298%.
In the fourth quarter, single-day market share and OI records were set for Eurodollar futures and combined U.S. Treasury futures. The Eurodollar futures contract also established a single-day volume record while individual U.S. Treasury futures contracts set multiple records in volume, OI, and market share in the fourth quarter of 2010. A resurgence in momentum and trading activity in the fourth quarter helped ELX finish the year on a high note.
* Total average daily OI in U.S. Treasury futures rose 15% from 2009 to over 20K contracts in 2010.
* Total U.S. Treasury futures volume in 2010 exceeded 11MM contracts.
* ADV in U.S. Treasury futures for 2010 exceeded 47K contracts, up 14% from 2009; ADV exceeded 50K contracts in the month of December.
* Market share in the two-year Treasury futures contract was 4.9% for 2010 and 7.4% in the month of December, hitting a high of 13.4% on November 2, 2010.
* ELX launched its Eurodollar futures contract on June 18, 2010 and through December. Since launch mid-year, ADV in Eurodollar futures was over 9K contracts and average daily open interest was 75K contracts. ADV grew by 38% per month, average OI by 142% per month and market share by 34% per month.
* Total OI in Eurodollar futures surpassed 200K contracts in December and market share hit nearly 2% on December 1. 2010.
* In November, ELX completed a second round of financing, raising additional capital from its foundiital frndiital from its founding partners.
* Advantage Futures LLC partnered with ELX to become the 14th firm to offer Futures Commission Merchant (FCM) services for ELX.
* Catherine Bartzos was appointed new Chairman of the ELX Board.
* ELX continued to aggressively pursue the EFF transaction for the benefit of market users in 2010.
Neal Wolkoff, Chief Executive Officer of ELX Futures, said, "ELX Futures has succeeded in achieving significant milestones in its first full year of business operations. ELX made great strides in establishing itself as a competitor in the futures space. With the launch of its Eurodollar futures contract in 2010, ELX also showed its ability to launch and foster a contract that has captured the attention of market participants. In 2011, ELX will continue to compete aggressively to offer market participants a compelling alternative in global futures trading."
Among other noteworthy highlights of 2010 was ELX's partnership with Advantage Futures LLC, a premier technology-focused futures brokerage firm, to become an authorized Participant and offer FCM services. ELX also appointed Catherine Bartzos as the new Chairman of the ELX Board in June 2010. Ms. Bartzos, is a Managing Director at J.P. Morgan., In November 2010, ELX completed a second round of financing, raising additional capital from its founding partners.
In addition, ELX continued to aggressively pursue the Exchange of Futures for Futures (EFF) Rule in 2010. The Commodity Futures Trading Commission (CFTC) notified the CME Group in a letter in January 2010 that it had "mischaracterized" the Commodity Exchange Act and found its arguments "unpersuasive" in informing market users that its rules do not permit the execution of EFFs and users would be subject to disciplinary action. After several CFTC inquiries to ELX and CME Group to provide more information, ELX expects a resolution to provide regulatory clarity on the EFF issue in 2011.