Primary Venue FX Volumes Remain Lower YoY

While activity on the primary FX venues was mixed month-on-month thanks to January not being a roll month for CME, average daily volume (ADV) on all three venues was lower year-on-year.

Refinitiv reports ADV of $83 billion for spot FX across its platforms in January, a 6.4% increase from December, but a 12.6% decline from January 2019. In non-spot products the picture was much brighter for Refinitiv, the company handling ADV of $349 billion, a 10.1% increase from December and flat year-on-year.

As noted, CME Group FX volume across its futures and options product suite declined sharply from the December roll month – the Merc handled $73.6 billion in notional value during January, a 26% decline month-on-month and down 11.3% from the previous January. Better news from CME came in a new all-time record for large open interest holders in FX futures on January 28. This is seen as a measure of market diversification as reported by the US Commodity Futures Trading Commission (CFTC) and stood at 1,265 participants on January 29, thanks to new records in euro and Brazilian real.

EBS, which is owned by CME, reports FX ADV in spot of $71.2 billion, a 25.1% increase from December (which was a record low for EBS since it started reporting data), but down 18.2% year-on-year.

Elsewhere, Deutsche Borse says it handled ADV across all FX products of EUR 82.2 billion in January, this is an 11.8% decline from December, but up 9.5% year-on-year – this data includes $21.8 billion of spot FX ADV.

Colin Lambert

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