Middle East Hedge-Fund Moves May Be Driving CME Group Trading Growth as U.S. Dollar Pegs Could Bolster Gulf Markets

By COINOTAG — Published: 2025-10-15 | Updated: 2025-10-15

• 16% increase in regional average daily volume to 193,000 contracts

• Hedge fund trading from the Gulf rose roughly 30%, driven by new offices and staff relocations

• Middle East accounts for a single-digit share of CME’s global activity but is the fastest-growing segment

CME Group Middle East trading surge: CME sees 16% regional volume growth and 30% hedge fund rise—read the latest data and implications for Gulf markets. Learn more.

How is CME Group’s trading activity growing in the Middle East?

CME Group Middle East trading has accelerated in 2025, with the exchange reporting a 16% year-to-date rise in average daily volume to 193,000 contracts and an approximately 30% increase in hedge fund trading, according to data released by CME Group. The uplift aligns with hedge funds establishing regional bases to access local capital.

Why are hedge funds relocating operations to Dubai and Abu Dhabi?

Hedge funds are moving to the Gulf for a mix of business and logistical reasons. Firms such as Davidson Kempner (managing $37 billion), Marshall Wace and Brevan Howard have opened or expanded Gulf teams to be closer to sovereign wealth funds and regional allocators. The Dubai International Financial Centre (DIFC) reported hosting 85 hedge funds in July, with 69 managing over $1 billion each. Julie Winkler, CME Group’s chief commercial officer, called the hedge-fund rush “pretty consequential,” noting the region is “our fastest-growing segment by far.” The appeal includes tax-favorable regimes, lifestyle considerations, and a timezone that bridges Asia, Europe and U.S. markets, enabling extended trading coverage.

Frequently Asked Questions

How much has CME Group’s average daily volume from the Middle East grown this year?

CME Group reported a 16% increase year-to-date in average daily volume from the Middle East, rising to roughly 193,000 contracts per day, based on the exchange’s data release. This metric highlights elevated client activity but still represents a single-digit share of CME’s global volumes.

Are hedge funds really shifting their teams to the Gulf?

Yes. Several major hedge funds have opened or expanded offices in Dubai and Abu Dhabi to be nearer to regional investors. Industry statements and market registrations indicate a marked pickup in fund setups and personnel moves that support increased trading activity in CME products.

Key Takeaways

• Regional volume spike: CME’s Middle East average daily volume rose 16% to 193,000 contracts, signaling stronger client engagement.
• Hedge fund momentum: Hedge fund trading from the Gulf increased about 30%, aided by new local offices and substantial staff relocations.
• Market implications: Gulf market strength and anticipated U.S. Fed rate cuts are supporting local equities and could sustain derivatives activity; monitor regulatory and liquidity developments.

Conclusion

The CME Group Middle East trading surge reflects concrete shifts in where global trading desks and allocators choose to operate, driven by proximity to sovereign capital, favorable business environments and a strategic timezone advantage. While the region still represents a single-digit share of CME’s total volumes—comparable to Hong Kong—the growth trajectory is notable. Readers should watch fund registrations, local market liquidity and CME’s regional engagement for signs of sustained expansion. For ongoing coverage, follow COINOTAG for updates and data analyses.

Sources: CME Group data release; Dubai International Financial Centre (DIFC) announcement; statements from Julie Winkler, CME Group chief commercial officer; market reports referencing Reuters; market pricing for U.S. Federal Reserve rate expectations.