MARKET MONTHLY: ACCU derivatives contracting surges to record high behind increasing forward activity

Traded volumes across the Australian spot and forward markets reached a 15-month high of over 2.8 million ACCUs in May, reflecting reported volumes available to the market (excluding confidential submissions to our survey panel). Notably, over 1.4 million ACCUs were traded under derivative contracts (forwards and options) – a new record high – and a 70% increase on the previous record set in January 2023, behind longer and larger forward contracting, narrowing our marked costs of carry. Monthly spot volumes fell to a 7-month low in May behind lower issuance, yet marked the 7th consecutive month the market has surpassed