Two of Chicago’s big derivatives markets say that 2005 was a record year for them.

The Chicago Board Options Exchange announced Tuesday that, for the second consecutive year, annual trading volume at CBOE posted a new all-time record. The 468.2 million contracts traded in 2005 represented the busiest year in CBOE history and a 30% increase over 2004’s record total of 361.1 million contracts.

Trading in index and exchange traded fund options experienced explosive growth in 2005 with volume reaching 192.5 million contracts, a new record for annual index option volume at CBOE, and an increase of 41% over 2004’s total of 136.7 million. Several of CBOE’s index and ETF options logged record annual volume in 2005, including options on the S&P 500 Index, Nasdaq-100 Index, Russell 2000 Index, and the iShares Russell 2000 Index Fund. Trading in equity options at CBOE was 275.6 million contracts, 23% above 2004’s total of 224.3 million.

For 2005, it is estimated that the CBOE traded more than US$12.8 trillion in notional value over the course of the year.

Also, the Chicago Mercantile Exchange reported that it posted total 2005 annual volume of 1.05 billion contracts as it achieved double-digit volume gains for the sixth consecutive year. The CME total average daily volume in 2005 was nearly 4.2 million contracts, up 34% from 2004.

Volume on the CME Globex electronic trading platform increased 62% for the year, with total volume of 730 million contracts and average daily volume of 2.9 million. CME Globex volume represented 70% of total CME volume, compared with 57% in 2004.

The CME set annual volume records in all four product groups. Average daily volume in CME’s interest rate products of 2.4 million contracts for the year climbed 40% from the record volume levels achieved in 2004. This increase was driven by continued growth in CME Eurodollar options. Its foreign exchange complex saw year-on-year average daily volume increase 65% to more than 334,000 contracts per day in 2005. Combined average daily volume in CME’s E-mini equity product complex was approximately 1.3 million contracts in 2005, up 21% compared with 2004. And, the CME’s commodities product complex experienced its third consecutive year of double- digit growth, and was up 23% compared to 2004.

In spite of the normal year-end slowdown, overall fourth quarter trading activity remained strong, with average daily volume above 4.1 million contracts, up 33% from the same period in 2004.

The notional value of transactions on the CME in 2005 represented $638 trillion, up 38% from US$463 trillion in 2004.