Data from a second group of platform providers has reinforced the message from the first two releases that while it didn't pull up too many trees, December 2018 was a solid month for most that ended a good year. All providers reporting increased activity in the whole of 2018 compared to 2017. There was a more mixed message in the month-on-month data with only three providers reporting an increase from November, but the year-on-year data generally speaking gave grounds for optimism amongst providers.
Data from CboeFX and Fastmatch indicate that while there was an inevitable drop from November, FX activity in December was historically robust.
CboeFX, formerly HotspotFX, reports average daily volume (ADV) of $33.4 billion in December, 4.3% lower than November, but up 7.4% from December 2017. CboeFX data is based upon 21 trading days, it was open in Asia on December 25, but it was not even the quietest month in the year for the platform, that marker going to July at $33.2 billion.
Meanwhile, Euronext’s FastmatchFX report ADV of $19.1 billion, down 5.9% on the month but again up on the year – by 22.4%. Fastmatch data is based upon 20 trading days.
Commodity broker Marex Spectron has signed an agreement to acquire the customer business of Rosenthal Collins Group (RCG), an independent Futures Commission Merchant (FCM).
The acquisition is expected to complete in January 2019 and Marex says it will maintain the RCG name and brand, gain 14,000 client accounts and balances, 150 associated staff and the Chicago headquarters. RCG has little overlap with Marex Spectron’s existing North American business, which operates out of New York, Calgary, Connecticut and Houston, the firm says.
The total average daily volume (ADV) of FX trading across Refinitiv platforms in November 2018 totaled $394bn, while the ADV of spot trading was $90bn.
This means that spot volumes were down 4.3% compared to October and November 2017, when Refinitiv – then Thomson Reuters – recorded an ADV of $94 billion.
The overall FX volumes – which include spot, forwards, swaps, options and NDF products – was down 5% month-on-month, but largely flat compared to the ADV of $397 billion recorded in November 2017.
CME Group, which now owns EBS, reported almost no change in trading volumes for November on both the spot FX and derivatives sides of its business.
The average daily volume (ADV) of Spot FX traded on EBS was $81.6 billion in November, down 1% month-on-month and 8% year-on-year.
This is consistent with the other spot FX platforms that have already reported last month’s volumes, most of which saw only marginal changes in trading volumes compared to October.
For the 12-month period ending November 30, the ADV on EBS for spot FX was $89.6 billion, up 6% compared to the same period one year previous.
The data from the first set of FX platforms to report volumes suggests that any changes in trading activity were fairly minimal in November.
Fastmatch reported an ADV of $20.3 billion for November, up slightly from the $19.2 billion that it reported in October and the $17.8 billion that it recorded in November 2017. After seeing volumes on its FX Tape increase by 12.1% in October, Fastmatch was able to sustain this volume in November with an average of $95.3 billion being reported to it each day.
The ADV on Cboe Hotspot was $34.6 billion in November, down 5.4% from the $36.6 billion recorded in October, but marginally up year-on-year from the $33.9 billion that it recorded in November 2017.
Dinosaur Financial Group (Dinosaur), a broker-dealer and subsidiary of Dinosaur Group Holdings, has launched a new global FX trading service.
Through this service, Dinosaur will provide the option of electronic or voice trading for FX spot, forwards, swaps, NDFs, options and deliverables.
Glenn Grossman, founder and chairman of Dinosaur, based in New York, says: “We are pleased to announce our new FX service. With tier-1 banks increasingly ‘derisking’, we find ourselves at an evolutionary point for Dinosaur, and our clients are looking to us to provide a wider range of services.
Completing a very mixed month-on-month picture for FX trading venues, Deutsche Borse’s 360T reports average daily volume (ADV) of EUR 74.7 billion in October, a fraction below last month’s EUR 75.7 billion.
Previously EBS, FastMatchFX, FXSpotStream, CboeFX and Integral had reported an increase from September, while CME Group and Refinitiv were slightly down.
Since July 2018, 360T’s data has included ADV from GTX, the platform it bought earlier this year, taking GTX’ October 2017 volume into account and reflecting it in euros indicates that the combined year-on-year turnover is up a fraction from EUR 74.4 billion last year.
Advanced Markets has signed Standard Chartered Bank as a foreign exchange prime broker. The addition will further extend the range of clients that can use prime brokerage to trade via Advanced Markets’ Direct Market Access (DMA) liquidity infrastructure.
Standard Chartered will provide prime brokerage services to the newly launched FCA-registered Advanced Markets (UK) Limited operation based in London as well as the company’s ASIC-registered operation in Australia. The companies operate as independent entities and will have discrete prime brokerage accounts at the bank.
EBS Markets has reported average daily turnover (ADV) of $88.7 billion in spot FX products in October, a 3% increase on September and a 10% increase year-on-year. The firm, the name of which will be reverting to EBS following the completion of its takeover by CME Group, has now reported three consecutive monthly increases, following a sharp drop in July – at $88.7 billion turnover is slightly below the average for the first nine months of the year of $93.2 billion.