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FastMatch Hits New High as First Platforms Volumes Released

The first three platforms to confirm data
for June show that FX volumes rose across the board driven, of course, by
activity around the UK’s vote on European Union membership.

FastMatch recorded average daily volume
(ADV) of $16.1 billion in June, its highest yet, 29.4% above its previous high
of $12.6 billion set in October and November 2014. This represents a 43%
increase from May’s data and an even steeper 77.2% increase from June 2015.

As previously reported by Profit & Loss FastMatch handled a
record $39.8 billion on June 24, the day when the UK vote outcome was
announced, this was the first time the platform had seen more than $30 billion
dollars go through, its previous high was in fact $24.4 billion on January 15,
2015 when the Swiss National Bank withdrew the EUR/CHF floor.

June 24 represented just the seventh time
FastMatch had seen more than $20 billion since it starting reported data in
January 2013. The platform will probably be particularly heartened by the fact
that four of its over-$20 billion days have come this year, highlighting it has
successfully extricated itself from its association with FXCM following the
latter’s turmoil after it was bailed out following the SNB move.

June was also a good month for Bats’
HotspotFX and Gain GTX, both of which saw good volume growth.

Hotspot handled $28.8 billion per day but,
while this is a 23% month-on-month and 12% year-on-year increase, it represents
only the third busiest month for the platform in 2016 after it peaked above $30
billion in both January and February.

Meanwhile, Gain GTX saw ADV of $9.65
billion across its ECN and SEF (the vast majority of volume being on its ECN),
a 40% increase from May and 18% up on June 2015. Gain’s swap dealer business
handled $2.4 billion per day in June, down 16% from May and down 9%

These results are expected to be mirrored
by other platforms in coming days, however market sources tell Profit & Loss that they expect most
of the growth to be in the ECN environment. One e-FX source says that while all
platforms seemed to do OK, “the RFS (request for stream) model was pretty quiet”.

This is yet to be confirmed, however the
source adds this is likely to be the case because banks used ECNs to clear risk
but were less willing to quote for larger tickets in an openly competitive
environment. While platform sources say it is too early to provide data, one
source does suggest the RFS model did not see the growth of other models on June

Twitter @lamboPnL

Twitter @Profit_and_Loss

Colin Lambert

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