Articles tagged by Fx Volumes
The first three platforms to confirm data
for June show that FX volumes rose across the board driven, of course, by
activity around the UK’s vote on European Union membership.
FastMatch recorded average daily volume
(ADV) of $16.1 billion in ...
The total average daily volume (ADV) of foreign exchange
trading across Thomson Reuters platforms in June totalled $394bn, rising by by
5% year-on-year and by 13.5% month-on-month.
ADV for spot trading in June was $116bn, Reuters says.
This total reflects trading volumes ...
Trying to decipher platform performance
during last month’s UK-inspired mayhem is almost as difficult as keeping track
with the latest shenanigans in UK politics following the vote to leave the EU –
but I’ve had a go and there ...
The first batch of trading venues to
provide turnover data indicates that trading volumes in July, perhaps
inevitably, retreated from the Brexit-inspired heights of June.
HotspotFX reports average daily volume
(ADV) of $26.25 billion in July, down 9% from June’s $28.8 billion. ...
CME Group and Moscow Exchange (Moex) have both
reported lower FX volumes in July – largely reflecting the first batch of data
from the OTC platforms earlier this week.
CME says average daily volume (ADV) in its
FX contracts was 724,000, the ...
I have long been a sceptic over the market
share model in FX, to me the question should always be about the quality of
business, not the quantity, but that is not to say that a reasonable share of
Most FX major trading venues will be glad to see the back of August – following the downbeat results from FastMatch and Hotspot, four other venues have reported a decline in volumes – two registering historic lows and a third the lowest in seven years. The numbers add up to a horrible month for the platforms and, by association, for the wider foreign exchange industry as activity levels continue to dive following June’s Brexit-inspired spike, most will be hoping for a forex rebound in September.
Data from CLS shows that its average daily input volumes for August were down 15.9% month-on-month, which is consistent with a broader decline in trading activity across the multibank FX platforms last month.
The average daily input volume submitted to CLS, combining the settlement and aggregation services, was 883,368 in August, down from 1,050,046 the previous month and the 1,170,313 recorded in August 2015.
However, average daily input values were flat – down just 0.2% month-on-month to $4.68 trillion from $4.69 trillion in July 2016.
Early indications from FX trading platforms suggests all saw a good boost to activity during the US election results sequence.
Bats’ Hotspot handled average daily volume (ADV) of $64.5 billion on November 9, the firm says, roughly two and a half times more than the average it had been handling in the first week of the month and significantly higher than last month’s $25.3 billion ADV.
FXSpotStream also had a good day, with the firm saying it handled $48 billion on a single count basis, almost three times its volumes which last month were $17.1 billion.
FastMatchFX also saw a similar increase in activity, handling $38 billion yesterday, up from the $14 billion it was averaging in November and the $13.6 billion averaged in October.
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.
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.
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.
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.
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.
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.
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’.
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.
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.
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.
Scepticism abounds in this week’s In the FICC of It podcast as Colin Lambert and Galen Stops take a look at the latest bank to unveil a digital markets strategy – including all your favourite buzzwords. While Stops believes this is the latest move in what will be a growing trend, our podcasters also wonder whether it’s not really just a rebranding exercise?
They then move into more traditional areas and discuss JP Morgan’s survey on FX market conditions, and while they agree with a lot of the findings, there are one or two areas that raise an eyebrow, not least around internalisation and AI.
AI-generated trading and liquidity are also the forefront as they move on to share their thoughts around the flash crash in Jardine Matheson stock last week in Singapore, including asking the question, what does it mean for market maker programmes and certain order types?
The discussion then moves on to look at the latest FX turnover surveys from the world’s FX committees, with particular attention on three interesting/puzzling (delete as appropriate) elements of the UK report surrounding RMB, NDFs and voice brokers.
The podcast ends on with Lambert praising “the optimism of youth” after Stops highlights what he thinks could be a very important line at the end of the latest document detailing an FX-related fine in the US – in other words, the cynic in him won the day!
Although EBS volumes rose month-on-month, average daily volume data for CME Group weakened in January from the year before.
CME’s FX futures and options product set had ADV of 838,000 contracts per day, which Profit & Loss estimates represents $83 billion per day, a 23.5% fall from January 2018. This is also a 15.3% drop from December’s estimate of $98 billion per day in notional value.
Meanwhile, EBS, which is now owned by CME, reports spot FX volume of $87.1 billion in January, 14% higher than December, but 17% down on a year-on-year basis. This also represents the worst January for the platform since it started reporting ADV in January 2007.
In this week's podcast Colin Lambert and Galen Stops discuss the article penned for Profit & Loss by former FX trader Rohan Ramchandani about his trial and subsequent acquittal for market manipulation. While they generally agree on most points there is, inevitably, areas of disagreement, but that is nothing compared to when they move on (thanks to a quiet news week) to how they ranked each other's predictions for 2018. The results are available on the website, but why did Stops given Lambert a 6/10 for a bitcoin prediction that was actually correct? And why did Lambert return the compliment given Stops just a 4/10 for his own crypto prediction? All will be revealed in this week's In the FICC of It podcast, along with exactly which one of them scored the most points with their predictions.
The three primary FX venues to report average daily volume (ADV) data have reinforced data from a second group that activity in the market was low in February.
Refinitv says it handled $87 billion in spot ADV in February, down 8.4% from January and down 23% from February 2018, while CME Group says both its futures and EBS businesses saw similar declines.
CME Group reports ADV in futures and options contracts of 762,000, which Profit & Loss estimates to be notional volume of $75.4 billion. This is a 9.2% drop month-on-month but down 30% year-on-year.