In 2016 Fastmatch saw year-on-year average daily volumes (ADV) on its platform grow by 54%, and no doubt this growth was at least partially responsible for Euronext’s decision to spend $153 million to purchase 90% of the platform in August 2017, as it subsequently registered a 44% increase in ADV for that year. 2018 saw strong, if not as spectacular, year-on-year ADV growth of 9% to $20.1 billion, but Kevin Wolf, CEO of FastMatch and head of FICC US at Euronext, instead highlights the increase in the number of clients using the platform as the key growth metric for the year. “When we think about client acquisitions, we break it down along two dimensions: one is the number of clients and the other is the diversity of clients,” he explains.
FastMatch and Dmitri Galinov, the founder and former CEO of the company, have resolved the lawsuit filed by Galinov against FastMatch and its parent company, Euronext US.Under the terms of the settlement, neither party admits any liability or wrongdoing.“The settlement is in the best interests of the company, its employees and clients,” says a release announcing the agreement.Galinov left the company on 6 June, 2018 and is “pursuing other interests”, according to the release.Profit & Loss was unable to immediately contact a spokesperson for Euronext, while a spokesperson for Galinov says that as part of the settlement agreement both parties are unable to comment on the terms of the agreement.
David Lyons has joined FastMatch as head of product and business development, reporting to CEO Kevin Wolf.Based in New York, Lyons was previously working as a consultant, advising firms on electronic trading, electronic risk management, best execution and transaction cost analysis (TCA).Prior to that, Lyons was the global head of EBS Hedge between 2014 and 2016, when the platform was still part of the ICAP business. Lyons has spent most of his FX career on the banking side though, having spent 20 years at RBS in a variety of FX-focused roles, including head of electronic spot FX, in both London and New York.
The data from the first set of FX platforms to report volumes suggests that any changes in trading activity were fairly minimal in November.
Fastmatch reported an ADV of $20.3 billion for November, up slightly from the $19.2 billion that it reported in October and the $17.8 billion that it recorded in November 2017. After seeing volumes on its FX Tape increase by 12.1% in October, Fastmatch was able to sustain this volume in November with an average of $95.3 billion being reported to it each day.
The ADV on Cboe Hotspot was $34.6 billion in November, down 5.4% from the $36.6 billion recorded in October, but marginally up year-on-year from the $33.9 billion that it recorded in November 2017.
Data from the first set of trading venues to report their monthly volumes shows that FXSpotStream had its best ever month in terms of average daily volume (ADV), while trading on other OTC FX platforms reporting volumes slowed down slightly in June.
FXSpotStream achieved an ADV record of $30.4 billion in June, a 5.33% increase from the previous record of $28.8 billion set in February 2018.
This represents an 8.22% increase from May’s ADV of $28 billion, and a massive 49.52% increase year-on-year.
In the latest edition of Profit & Loss’ podcast series, In the FICC of It, managing editor Colin Lambert and editor Galen Stops discuss some of the news stories that have hit the headlines over the past week. They discuss the surprising departure of Fastmatch CEO Dmitri Galinov, the drivers of latest deal in the FX trading platform world and the challenges and opportunities facing the CTA industry. They close out with a few quick thoughts on the first anniversary of the FX Global Code and as you would expect, they are “off message”!
Dmitri Galinov, CEO of Fastmatch, has left the firm. Fastmatch was bought by exchange group Euronext one year ago.
Kevin Wolf, head of FICC for the US, has assumed responsibility for Fastmatch. Wolf will report to Paul Humphries, global head of FICC at the exchange group. Wolf joined Euronext in August 2017 after a short spell as principal at Viable Markets, prior to which he spent six years at Eris Exchange, most latterly as chief business and product development officer.
May was a good month for OTC FX platforms, judging by the first set of venues to report trading volumes.
GTX’s ECN and SEF set a new monthly ADV record of $16.8 billion, beating the previous record of $16.1 billion set in February this year and up from $13.3 billion last month.
Elsewhere, GTX’s monthly volume of $385.5 billion surpassed the previous $322.7 billion, also set in February, and the venue bested its previous daily record volume five times in May, registering a new high of $26.8 billion on one of these days.
These figures mean that both total monthly volumes and ADV on the GTX ECN and SEF were up 56% year-on-year in May.
BestX is including the FX Tape, a service provided by FastMatch, a Euronext company, within the BestX Best Execution FX Analytics, allowing clients to choose to include the FX Tape as an additional benchmark against which they can analyse their trade portfolios.
BestX is the first FX analytics provider to offer clients FastMatch’s FX Tape service as a benchmark to its client base, which includes asset managers, hedge funds, wealth managers and sovereign wealth funds.
“As the industry standard for FX TCA, it is important that BestX offers the FastMatch FX Tape as an additional benchmark within our analytics for our clients. The inclusion of the FX market’s default streaming mid is another material step towards increasing the transparency of the FX market,” says Oliver Jerome, Co-Founder at BestX.
The first four platforms to report average daily volume (ADV) for April paint a mixed picture with Euronext’s Fastmatch FX seeing an uptick in activity from March and Cboe FX, FXSpotStream and GTX seeing a slight decline. All four venues are higher on a year-on-year basis.
Cboe FX, formerly HotspotFX, reports average daily volume of $36.3 billion in April, FXSpotStream, $24.6 billion, FastmatchFX $19.4 billion and Gain’s GTX $13.3 billion. The Fastmatch Tape has also report a big gain in April.