Articles tagged by Fxspotstream
FXSpotStream (FSS) is the latest multibank FX
platform to report record trading volumes following the spike in activity
caused by the UK’s referendum decision to exit the European Union.
In June, FSS recorded
a new all-time service record for ...
Thomson Reuters, FX Spotstream and FXCM
have all reported a month-on-month decline in FX average daily volume (ADV),
however the latter two are up on a year-on-year basis.
Thomson Reuters says spot volumes across
its platforms was $97 billion per day, 8.5% ...
The latest batch of monthly volumes to be reported by the multibank FX platforms are more mixed, after Hotspot, FastMatch and Gain GTX all posted month-on-month and year-on-year increases in their September volumes earlier this week.
Although volumes on EBS, FXSpotStream and CME Group all recovered from August – when trading volumes were significantly down across the board – activity on the first two of these platforms was down year-on-year, while CME posted only a marginal increase in comparison to September 2015.
CME, EBS and FXSpotStream have all released October volume data, and, as was the case with the first group to report, the news is very mixed.
EBS says FX volume averaged $83.8 billion in October, 3% higher than September’s $81.7 billion and a fraction higher than October 2015’s $83.1 billion.
Meanwhile the outlook was gloomier at CME Group where the Merc reported average daily turnover of 771,000 contracts in FX products, 5% higher than October 2015 but down 20.4% on September’s data. Profit & Loss estimates ADV at CME in FX products to be $88 billion in notional value across futures and options on futures.
It was a different picture at FXSpotStream, however, where the platform registered $17.1 billion ADV, up 24.5% from October 2015 and also up 10.3% month-on month.
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.
Following the release of the first set of volume data from three platforms at the start of the week, a new set from three providers reinforces the impression that December was a decent month for those responsible for providing trading venues.
The newly-branded Nex Group says average daily volume (ADV) on its EBS platform was $89.6 billion in December, while CME Group handled 892,000 FX contracts (around $92 billion) and FXSpotStream reported a daily average of $18.4 billion on a 21 trading day basis.
Galen Stops looks back at how the OTC FX platforms fared in 2016 and talks to them about their strategic plans for 2017.
Speaking to platform providers at the end of 2015 about their prospects for the next year, they were all fairly bullish that a period of subdued volatility, and subsequently trading volumes, was about to come to an end.
And on the surface, the reasons they cited for this optimism were logical. The US Federal Reserve had just approved a quarter-point increase in its target funds rate, the first change in rates since 2009 and the first increase since 2006. Many hoped that further rate increases were coming and that interest rate differentials might start to produce trading opportunities and therefore lift FX volumes.
The second group of FX platforms to report average daily volume (ADV) for January has generally matched the month-on-month increase reported elsewhere but has suffered a year-on-year drop.
The second group of platforms to report results confirm that February was a quieter month than January, as well as compared to February 2016.
CME Group, EBS and FXSpotStream have all reported positive data for March, following similar reports from FastMatch, Gain GTX and Hotspot earlier in the week.
CME says it averaged 978,000 contracts in March, up 6.3% from February’s data and up 7.3% year-on-year. Profit & Loss estimates that CME’s notional volume was in the region of $85 billion per day.
Nex Group says that average daily FX volume on EBS was $86.7 billion, 7.4% higher than February and 3.6% higher than March 2016.
Finally, FXSpotStream says it handled $18.8 billion per day in March, a fraction higher than the $18.7 billion in February and 6.8% higher than March 2016.
After the Bank for International Settlements (BIS) Triennial FX Survey revealed last year that the industry has shrunk in terms of notional volumes for the first time in 15 years, speakers at Forex Network London outlined the factors that could help this market get back to growth.
During the discussion the speakers on the panel outlined a number of issues that have constrained trading volumes over the past three years, including technology shortcomings, a lack of investment in some areas of the market, and regulatory challenges.
Against this background, the question was put to the panellists, how does the FX industry get back to the kind sustainable growth that it witnessed between 2001 and 2016?
The first FX platform providers to report average daily volume (ADV) data indicate May maintained the momentum of the previous months.
Spot FX activity on NEX Markets (formerly EBS) was $81.3 billion per day, up 6.8% from April and 12% higher year-on-year. At CME combined FX futures and options on futures volume was 823,000 contracts per day.
CBoE’s HotspotFX reports ADV of $28.1 billion, a 1.4% increase on April and a very healthy 20% increase from May 2016, while FastMatchFX reports ADV of $22.5 billion, a 18.4% month-on-month increase and almost double May 2016’s ADV of $11.4 billion.
FXSpotStream handled $17.5 billion in May, up 2% from April and 9% from May 2016 and Gain’s GTX reports ADV across its ECN and SEF of $10.7 billion, a 7% drop from April but a 55% increase from May 2016.
CME Group and FX SpotStream have both reported strong average daily volume data.
CME says that ADV in its FX futures and options products was 1,014,000 contracts per day, which Profit & Loss estimates to be in the region of $92 billion of futures and $8 billion in options.
This is 23% higher than activity levels in May and unchanged from June 2016.
Meanwhile, FXSpotStream saws ADV was $20.3 billion, a strong rebound from May’s $17.4 billion.
Although it had this 16.7% month-on-month rise, FXSpotStream did see a slight 2.1% decline in activity from June 2016.
After three platforms reported mixed results last week, FXSpotStream has delivered a strong performance for the month.
FXSpotStream has onboarded State Street as the latest liquidity provider to its service, hired a new CTO and revealed plans to make a new analytics suite available to its liquidity providing banks and clients.
State Street becomes the 13th bank to go live as a liquidity provider on FXSpotStream’s price aggregation service, after Bank of Tokyo-Mitsubishi UFJ (BTMU) was added in December 2015.
“We know from client requests that liquidity from State Street will be a welcome addition to FXSpotStream’s existing bank liquidity. Our service provides State Street an expanded e-distribution network through our global connectivity network and client base. With co-location sites in New York, Tokyo and London, clients can use either our GUI or single API connection to access State Street’s liquidity,” Alan Schwarz, CEO of FXSpotStream, tells Profit & Loss.
The first four platform providers to publish FX average daily volume (ADV) for September have all reported significant month-on-month (MoM) and year-on-year (YoY) increases.
FXSpotStream’s ADV for September was $23.9 billion, which represents its highest ever monthly ADV since the service was founded nearly six years ago. It is also a 24.6% MoM increase and a 54.9% YoY increase in ADV.
The record setting volume in September caps a newsworthy month for FXSpotStream, as it revealed exclusively to Profit & Loss that it has added State Street as its 13th liquidity provider, has hired a new CTO and is planning to launch a new analytics suite.
The first four platforms to report FX volumes for October indicate that while turnover failed to maintain the September highs, average daily volume (ADV) remains close to the year’s peak and in healthy territory.
CBoE’s HotspotFX reports ADV of $32 billion in October, while FXSpotStream reports ADV of $19.9 billion. Elsewhere, Euronext’s FastMatchFX says it handled ADV of $18 billion in October and finally in the first group of platforms to report Gain Capital's GTX reports ADV of $11.4 billion.
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.
FXSpotStream has become the latest platform to announce a new high for monthly average daily volume (ADV) on its platform in January, hitting $26.34 billion in ADV.
This beats the prior record ADV of $23.94 billion by a substantial 10% and represents a 33% increase in ADV compared to December 2017 and a massive year-on-year ADV increase of 40%.
FXSpotStream also recorded its second highest day of volumes ever of $40 billion, a figure topped only by the $49 billion that was traded on the platform in November 2016, when the US presidential election caused a broad spike in trading across numerous FX platforms.
Following news last week that CboeFX and GTX had hit new records for FX average daily volume (ADV), FXSpotStream has now also reported a new peak in activity.
In February the platform says it handled $28.8 billion, a 9.5% increase on January, which was itself a new record high, and 53.7% up on February 2017.
CME Group, meanwhile reports a very slight decrease in FX activity from January, but a strong year-on-year rise, handling 1,087,000 contracts per day in its FX futures and options business, down less than 1% from January’s 1,093,000.
The first group of FX platforms to report average daily volume (ADV) indicate that activity slowed in July from June, however it remains strong on a year-on-year basis, with all reporting an increase.
CboeFX, formerly Hotspot FX, handled ADV of $33.2 billion, while FXSpotStream handled $27.7 billion, Euronext's Fastmatch FX handled $20 billion (the Fastmatch Tape reported $72.5 billion) and Integral, which reports data on all FX products, as compared to just spot by the other platforms, handled $35.3 billion.
The first group of trading venues to report FX ADV for August indicate a mixed picture, however overall activity seems to be higher.
CboeFX, formerly Hotspot FX, reports ADV of $34.9 billion, up 5.1% on July and 28.8% up year-on-year.
Elsewhere, FXSpotStream reports ADV of $28.4 billion, up 2.5% from July and 47.6% up from August 2017; and Euronext’s FastmatchFX handled an average of $19.5 billion per day, down 2.5% from July but up 20% year-on-year.
Although Fastmatch did not see month-on-month growth, the firm’s FX Tape reported a record amount of activity.
The first group of FX trading venues to report average daily volumes (ADV) for September paint a mixed picture with regards to the level of trading activity, much as they did at the end of August.
The ADV on CboeFX was $35.8 billion in September, a 2.5% increase compared to the previous month and an 8.1% increase compared to September 2017.
FastMatchFX recorded an ADV of $18.6 last month, down 4.6% from the $19.5 billion it recorded in August and down 10.1% from the $20.7 billion ADV it saw in September 2017. By contrast, the ADV on the FastMatch FX Tape was $84.4 billion last month, beating the previous record high that it set in August of $83.6 billion.
FX liquidity providers that use technology and data analytical tools are becoming more powerful in FX markets, but liquidity consumers are becoming better informed.
The role of data and the empowerment it brings FX market participants was a key theme of the first panel looking at liquidity at Profit & Loss Forex Network Chicago. Panellists agreed that generally speaking, liquidity in FX markets is fine, there is always a price; however, the question liquidity consumers need to ask is: “How high is that price?”
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.