CME volume falls 22 percent in December

CME Group Inc., the world's largest futures market, said daily volume dropped 22 percent in December as interest-rate trading fell, marking the second straight monthly decline.

Average volume was 8.2 million contracts daily compared with 10.6 million a year earlier, Chicago-based CME said today in a statement. The exchange earned on average 69.1 cents per contract in the three months ended in November for its agricultural and financial futures trading and a net average $1.56 for its energy futures products.

The decline at CME was led by interest-rate volumes, which tumbled 49 percent. Volumes at derivatives exchanges have been reduced by the U.S. recession, as tightened credit limited the amount of borrowed money used to trade. As the Federal Reserve has cut interest rates to as low as zero to stimulate the economy, the need to hedge with futures has diminished.

Trading dropped 14 percent in the fourth quarter to an average 10.4 million contracts a day from 12.1 million a year earlier. For the year about 4 percent more contracts changed hands each day compared with 2007.

CME Group bought the New York Mercantile Exchange last year to offer customers contracts in energy and metals. Volume at Nymex dropped 9.3 percent to an average 1.58 million contracts a day in the three months ended in December from 1.75 million in the three months ended in November. Energy prices have dropped on slowing economic growth worldwide.