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EBS Hits a New Low Amidst Mixed News for CME

December was a mixed month for CME Group with the FX futures and options franchise seeing new highs but EBS hitting its lowest point since it started reporting numbers in 2007.

Average daily volume (ADV) on EBS in spot FX was $56.9 billion per day in December. This was based upon a 22 day trading calendar and Profit & Loss estimates that taking out the very quiet December 26 date ADV was still under $60 billion – the first time it has been so for at least 15 years. This is an 8.2% month-on-month decline, which puts it at odds with the other platforms to report thus far, all of whom have seen an increase, and a 25.3% decline year-on-year.

2019 also marks a new low point for EBS in terms of ADV on a 12 monthly basis, the platform handling $75.2 billion a day over the year, almost 9% lower than the previous low in 2017 – which was, incidentally, the last time EBS went through a calendar year without recording ADV above $100 billion for a single month.

The news was better for CME Group’s FX futures and options franchise, however, with turnover helped by it being a roll month and the UK election triggering increased activity. CME says it handled 1.02 million contracts a day in December for a notional value of $99.5 billion, up a massive 54.7% from November’s non-roll month but also up 1.5% year-on-year. The month included a new record for daily volume at 2.7 million contracts on December 11 – surpassing the previous high of 2.5 million set in June 2017 – and two open interest records of 2.2 million contracts on December 10 and 2.3 million on December 11.

FXSpotStream has also reported ADV for December, handling $31.1 billion per day on a 22-day basis and $32.6 billion on a 21-day basis. Using the latter number this means that FXSS saw a 5.2% increase on a month-on-month basis and was unchanged ($50 million per day more) year-on-year.

 

Colin Lambert

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