Tag: Fxspotstream

Fxspotstream

FX Platform Volumes Drop in July

The first group of FX platforms to report average daily turnover (ADV) for July indicate that volume in the market dropped sharply from June, however year-on-year data was slightly better. FXSpotStream reports ADV of $36.3 billion in all FX products, a 14.2% drop from June but a very healthy 31% increase from July 2018, while […]

Primary Venues See FX Uptick in May

Data from three primary FX venues has confirmed earlier releases from platforms indicating that while spot FX activity rebounded in May from a poor April, it remains lower around 20-25% lower year-on-year. Refinitiv says its platforms handled $86 billion per day in May, up 6.2% from April but down 19.6% from May 2018 and it […]

FX Trading Activity Ticked Up in March

It looks like there was an uptick in trading activity in March, as the first platforms to report trading volumes – FXSpotStream, Cboe FX and FastMatch – all reported higher month-on-month volumes.The average daily volume (ADV) traded on FXSpotStream was $37.8 billion in March, its second highest month ever and an 8.38% increase from the $34.8 billion it reported for February. It also represents a 37% increase compared to March 2018.CboeFX reported an ADV of $38.5 billion last month, up 11.6% from the $34.5 billion it reported in February, but largely flat year-on-year.

FX Volumes Dip In February

Anecdotal evidence that February was a much quieter month for FX markets is reinforced by the first set of average daily volume (ADV) data reported by FX trading venues with all showing a month-on-month decline and only one a year-on-year rise.
FXSpotStream reports ADV of $34.8 billion in February, down 9.4% from January, but up 20.8% from February 2018.
Elsewhere, CboeFX says it handled $34.5 billion per day last month, a 4.2% decline month-on-month and a 21.9% decline from February 2018 – a month in which the platform set its highest ADV to date at $44.2 billion.
Finally in the first group to report data, Euronext’s FastmatchFX says it handled $18.1 billion per day in February, down 9.5% month-on-month and down 14.2% year-on-year. The FastmatchFX Tape also saw a month-on-month decline at $64.5 billion of notional value reported, this is down 3.4% from January, but still reflects a very healthy year-on-year increase from what was its second month of reporting in February 2018 when it handled $26.6 billion.
Fastmatch volumes are for spot FX products only, while CboeFX is spot and NDFs and FXSpotStream data is for all FX products, including FX swaps.

FXSpotStream: A Model That Works

Throughout 2018 FXSpotStream experienced a very sizable increase in trading volumes, even though it made no trading product launches on its service last year. Yes, in 2017 it added NDF/NDS products to its trading suite, and yes, in percentage terms it saw a healthy increase in trading volumes in this segment, but this still only accounts for less than 1% of the overall volume on the service. Instead, FXSpotStream’s CEO, Alan Schwarz, attributes the uptick in trading volumes to a significant increase in business from existing clients and volumes coming on line from new clients in the pipeline. At the same time, a broader shift in the market towards disclosed trading is contributing to FXSpotStream’s volume growth as is the firm’s fee structure, which sees liquidity provider banks pay a flat monthly fee to trade on the service while liquidity takers are not charged at all.

FXSpotStream: A Model That Works

Throughout 2018 FXSpotStream experienced a very sizable increase in trading volumes, even though it made no trading product launches on its service last year. Yes, in 2017 it added NDF/NDS products to its trading suite, and yes, in percentage terms it saw a healthy increase in trading volumes in this segment, but this still only accounts for less than 1% of the overall volume on the service. Instead, FXSpotStream’s CEO, Alan Schwarz, attributes the uptick in trading volumes to a significant increase in business from existing clients and volumes coming on line from new clients in the pipeline. At the same time, a broader shift in the market towards disclosed trading is contributing to FXSpotStream’s volume growth as is the firm’s fee structure, which sees liquidity provider banks pay a flat monthly fee to trade on the service while liquidity takers are not charged at all.

A Rising Tide Lifts All

If the numbers are anything to go by, 2018 was a good year for OTC FX platforms, says Galen Stops.2018 saw the spot volumes increase across all of the multidealer OTC FX platforms that report this data, something that has not happened once in the past five years. Talk to the platform providers about what they saw as the key drivers of trading volumes in 2018 and they largely cite the same factors, chief amongst these being a proper decoupling of US interest rates relative to the rest of the world.

Mixed Results from FX Platforms to Kick Off 2019

While the results from the first three platforms to report FX turnover data are all up from December, the year-on-year comparison is more mixed, with FXSpotStream hitting another peak for the service, but CboeFX and FastmatchFX both falling back.
FXSpotStream reports average daily volume (ADV) of $38.4 billion in all FX products, while CboeFX handled $36 billion per day of spot and FastmatchFX saw a daily average of $20 billion transacted on its platform. The Fastmatch Tape saw a decline for the second month in a row, however.