There has been contrasting news from two major FX trading venues with NEX Markets reporting a low for average daily volume (ADV) on its spot FX platform, but CME recording good growth.
NEX says ADV in spot FX was $65.5 billion, matching the platform’s lowest since it started reporting, which was set in August 2016. There was better news from CME Group, however, which reported ADV in its FX futures and options on futures contracts of one million per day, which Profit & Loss estimates to be in the region of $99 billion per day in notional terms.
The first four FX trading platforms to report average daily volume (ADV) data for December indicate that while activity declined, as usual in this month, generally markets remained busier than usual.
Although the latter three are relative newcomers to the platform space and are still regularly recording year-on-year increases, all four of Cboe FX, FXSpotStream, FastmatchFX and Gain’s GTX recorded their highest ADV for December since inception.
Eyes now turn to those platforms with longer reporting track records to confirm this initially strong December data.
The Wholesale Markets Brokers’ Association has announced that with immediate effect it will change its name to the European Venues and Intermediaries Association.
The Association says the new title reflects changes to the role of inter-dealer brokers following the implementation of Markets in Financial Instruments Directive (MiFID) II which comes into effect on 3 January 2018.The role of the newly-re-branded EVIA will be, it says, to strive to ensure fair and effective markets across its membership through the common rulebook of MiFID II.
Thomson Reuters has released into production, system enhancements to its Multilateral Trading Facility (MTF) to support FX derivatives trading in compliance with MiFID II regulations.
Thomson Reuters FXall and Forwards Matching users can now access liquidity on the MTF, which meets multiple MiFID II requirements relating to execution workflow, trading controls, post-trade transparency and reporting. MiFID II takes effect on January 3, 2018.
“We are extremely pleased to have reached the milestone of releasing the system enhancements into production to facilitate MiFID II compliance. In parallel, Thomson Reuters continues to work very closely with our customers and regulators to ensure a smooth transition into the new regulatory environment,” says Neill Penney, global head of trading. “As the implementation date approaches, we remain committed to continuing our approach of being a valued partner and advisor to our customers.”
Three more trading venues have reported slightly increased FX average daily volume (ADV) for November. Spot FX ADV on NEX Markets (Nex) last month was $82.3 billion, while CME Group reported ADV of 915,000 contracts, which Profit & Loss estimates to be in the region of $90.5 billion in notional value (of which roughly 10% is in FX options products). Elsewhere, FXSpotStream reports ADV of $22.1 billion. All three platforms are up month-on-month but down year-on-year - in the case of FXSpotStream only slightly so.
Gain Capital has joined the growing ranks of retail FX brokers offering Bitcoin trading, with the launch of the functionality on its City Index platform, the company's FCA regulated service in the UK.
Customers are able to trade the cryptocurrency as either a spread bet or a CFD (contract for difference) – Gain says that it has established liquidity relationships with multiple Bitcoin exchanges, which it uses to create a volume-weighted average price that it claims is “reliable and transparent”.
The first three platforms to report FX average daily volume (ADV) for November indicate activity stayed around year’s highs.
CBoE FX (formerly HotspotFX) reports ADV of $33.8 billion, a 5.6% increase from October and a 11.2% increase year-on-year.
Euronext’s FastmatchFX reports ADV of $17.8 billion in November, slightly down from October’s $18 billion and 4.1% higher than October 2017, and Gain’s GTX says it handled ADV of $12.2 billion on its ECN and SEF, a 7% increase month-on-month and up 18.4% year-on-year.
Thomson Reuters’ FX volumes have followed the path established by other platforms who reported earlier this month by reporting a month-on-month decline in spot FX average daily volume (ADV).
The firm says its platforms handled ADV of $91 billion per day, down 11.7% from September which was in turn the firm’s busiest month so far this year. The platforms also registered a small decline year-on-year, of 4.3%, meaning only Thomson Reuters and NEX Markets of the seven reporting firms saw a decline on both a month-on-month and year-on-year basis.
FastMatch is opening a sales office in Greenwich, Connecticut.
In a release issued today the platform emphasises the importance of having staff located close to its major customers.
The release describes the opening of the Greenwich office, which adds to FastMatch’s offices in New York, London and Moscow, as "an important step in expanding its touch points with major customers".
"The FX market has seen a significant rise in the use of electronic trading tools by the buy side,” adds Dmitri Galinov, CEO of FastMatch. “We are excited to be closer to our hedge fund clients and help them with their transition to new trading methods in FX.”
Both NEX Group and CME Group have reported monthly volume data broadly in line with the first four platforms to report for October
Nex Markets says average daily spot volume (ADV) on its EBS platforms was $80.6 billion in October, a 17% drop from September, but a 5% rise year-on-year.
It was a similar picture at CME where its combined FX futures and options on futures was just over 887,500 contracts per day, which Profit & Loss calculates to be just under $88 billion per day, of which just under $80 billion was in futures.
CME’s ADV is 29.4% lower from September’s stellar performance, however again it was 15% higher year-on-year.