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Rates Trading Activity Keeps SEF Volumes Level

On average, $380.3
billion per day was traded on swap execution facilities (SEFs) in December,
roughly in line with November but up 22% from December 2014.

The increase was
driven entirely by trading in interest rates as both foreign exchange and
credit trading volumes were down year-over-year.

Trading on interest
rates averaged $329.5 billion per day in December, up 5% from November and 28%
from the same month a year ago. Excluding forward rate agreements (FRAs), rates
trading averaged $161.0 billion per day in December, approximately the same as
November but up 17% from a year ago.

At 18.7% of market
share, Bloomberg was the busiest platform for rates in December, followed by
Tradeweb and Tullett Prebon, with 15.7% and 15.5% of market share respectively.

FRA trading averaged
$168.5 billion in December, up 12% from November and 41% from a year ago.

Trading in credit
products averaged $21.5 billion per day in December, up 8% from the previous
month but down 9% from December 2014. Bloomberg captured 74% of this market
followed by Tradeweb with 11.7% and then Tullett Prebon with 5.4%.

FX trading on SEFs
averaged $29.3 billion per day in December, down 22% from the previous month
and down 3% from a year ago.

Average daily trading
in non-deliverable forwards, which set a record in November, slumped to $17.5
billion per day in December.
 

Options trading
averaged $11.8 billion per day in December, the lowest since July 2014. In
terms of market share, BGC captured 30% of FX trading on SEFs, a new high for
this SEF. ICAP came in second with 19% and Tullett Prebon was third with 17.3%
of the market.

galen@profit-loss.com            Twitter: @Galen_Stops

Colin Lambert

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