EBS Markets has reported average daily turnover (ADV) of $88.7 billion in spot FX products in October, a 3% increase on September and a 10% increase year-on-year. The firm, the name of which will be reverting to EBS following the completion of its takeover by CME Group, has now reported three consecutive monthly increases, following a sharp drop in July – at $88.7 billion turnover is slightly below the average for the first nine months of the year of $93.2 billion.
Tag: Fx Volumes
The first batch of FX platforms to report data indicate October saw a modest uptick in activity from September, although CME Group saw average daily volume (ADV) fall from an outstanding previous month.
The stand-out results come from FXSpotStream, which has reported another peak in activity at $35.9 billion per day. Not only does this represent a 12.5% increase from the previous record in September and a huge 80.1% increase year-on-year, it also means that FXSS is recording ADV very close to CboeFX, formerly HotspotFX.
In this week’s podcast Galen Stops reports from Stockholm on his observations from last week’s Profit & Loss conference in that city, and his interruption by abseiling window cleaners gives Colin Lambert the opportunity to tell his favourite window cleaning story.
On more pertinent topics, they discuss the obvious discord between Sweden’s central bank and local economists and Lambert gives his thoughts on the start of the Cartel trial – stressing the differences between this and the impending appeal of Mark Johnson.
Technology is also in our podcasters cross hairs as they look at blunt instruments to manage market risk and Lambert asks the philosophical questions, ‘Is the market always lagging technology and is this a good thing?’ and ‘at what stage do market participants revert to making the tech work for them rather than have the tech dictate their modus operandi?’
There’s also a quick skip through the latest from the crypto world and Lambert also feels obliged to call out one company for its chaotic start to live under a new moniker, and another for good “spin” around its volume numbers.
In this week’s In the FICC of It from Profit & Loss Colin Lambert lifts the veil of secrecy around how this podcast is created and Galen Stops talks about democratising financial markets. They also engage on the latest FX volume surveys and ask ‘are they accurate?’ as well as talk about the impact of regulation on non-bank market makers. They also seek to explode the myth that people are leaving the banking industry in droves and briefly touch upon what Colin Lambert calls ‘the madness of regulation’.
February was the largest month ever for trading activity processed by CLS with the service handling $1.949 trillion per day, up 8% month-on-month and up a fraction over 30% year-on-year. Just over $1.3 trillion was in FX swaps, $542 billion in spot and $100 billion in forwards. The greatest year-on-year growth came in FX swaps, up 33.6% from February 2017, followed by spot at +26.9% and forwards at +8.7%. The data reflects that from trading venues earlier this month, all of whom reported significant year-on-year gains.
Thomson Reuters and Singapore Exchange have today released year-end FX trading volumes, which each show year-end dips from the previous month. TR reports total average daily volume of foreign exchange trading across its platforms in December totalled $392 billion, a dip from the $397 billion reported in November. Average daily volume for spot trading was $88 billion, down from $94 billion in November. This total reflects trading volumes on TR’s Matching and FXall in all transaction types, including spot, forwards, swaps, options and non-deliverable forwards.
Three more trading venues have reported slightly increased FX average daily volume (ADV) for November. Spot FX ADV on NEX Markets (Nex) last month was $82.3 billion, while CME Group reported ADV of 915,000 contracts, which Profit & Loss estimates to be in the region of $90.5 billion in notional value (of which roughly 10% is in FX options products). Elsewhere, FXSpotStream reports ADV of $22.1 billion. All three platforms are up month-on-month but down year-on-year – in the case of FXSpotStream only slightly so.
A new research report from Deutsche Bank highlights a change in the perception of sterling across the three major FX market time zones following last year’s vote to leave the European Union. The article, How Brexit changed how sterling is traded across the world is written by Deutsche Bank analysts Oliver Harvey and Rohini Grover, and it uses intra-day seasonality as the basis for its study. Previous work by the authors had found “strong evidence” of investment biases in the different time zones.
The average daily volume (ADV) of trades submitted to CLS was $1.64 trillion in June, up 6% from $1.55 trillion in May, and up 1.64% year-on-year.
The main driver of this growth appears to have been an increase in swaps and forward activity. Swaps accounted for $1.08 trillion of the ADV submitted to CLS in June, up 9.3% month-on-month and 7.5% year-on-year.
The ADV of $108 billion in FX forwards in June represented a 3.8% increase from the previous month and a 20% growth from June 2016, when an ADV of $90 billion was recorded.
One week after releasing analysis of activity around the UK election, and as the first anniversary of the vote approaches, CLS has released analysis of Cable spot volumes during Brexit-related events.
Unsurprisingly the analysis highlights how volumes spike during unexpected events. The data indicate that the Brexit vote, the Cable flash crash of October 7, 2016 and this month’s UK election were the three busiest days for Cable in the last 12 months – closely followed by another surprise event, the calling of the snap election on April 18.