Articles tagged by volumes
Three FX platform providers have reported lower volumes for the second consecutive month, highlighting the difficult nature of the market in August.
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.
Nothing says “tick box society” to me more than the world’s obsession with data and being able to quantify, and therefore justify, everything. We have finally reached the point where we have stopped doing the right thing by people because it may leave a couple of boxes un-ticked. There is a lot of attention paid to righting the industry's wrongs but too little attention is paid, in my view, to the psychological impact of reform. The FX industry has psychological scars that need healing.
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.
The average daily traded volume (ADV) submitted to CLS was $1.6 trillion in March, up 6.7% from February. This figure also represents a 9.6% increase from the $1.46 trillion ADV recorded for the same period a year ago.
At $462 billion in ADV, spot volumes were up 8.1% month-on-month, but down 1.3% year-on-year for March.
In contrast, swap volumes in March reached $1.04 trillion ADV, a 14% increase from the year before and a 6.2% increase from February.
Meanwhile forward volumes, at an ADV of $95 billion, were up 3.3% month-on-month and up 17.3% year-on-year, in March.
Although it does not provide specific numbers, TraderTools says that Q1 2017 volumes across its Unique Liquidity Network (ULN) were 217% above Q4 2016 volumes.
It adds that the ULN now consists of over 25 “unique” liquidity providers, making prices in emerging and “under-served” market currencies such as Turkish lira, South African rand, Russian ruble, Israeli shekel, the CE-3 currencies, and the Scandinavian currencies.
The number of “unique” takers connected to the ULN increased in Q1 by more than 20%, the firm also states.
Average daily volume (ADV) submitted to CLS was $1.58 trillion in August, down 1% from July.
CLS recorded an ADV of $1.05 trillion in swaps in August, up from $1.04 trillion the previous month.
Spot ADV submitted to CLS in July was $433 billion, down marginally from the $453 billion recorded in July.
The ADV of forwards products submitted to CLS last month was $96 billion, down from $101 billion in July.
Despite this month-on-month decrease, CLS volumes were up 14.8% year-on-year.
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.
Thomson Reuters (TR) is the latest FX platform to post strong September trading volumes, with figures released today showing that the average daily volume (ADV) of FX trading across all its platforms was $411 billion.
This represents a 12% month-on-month (MoM) and a 12.6% year-on-year (YoY) increase in volumes.
This total reflects trading volumes on Thomson Reuters Matching and FXall in all transaction types, including spot, forwards, swaps, options and non-deliverable forwards (NDFs).
The volumes data on TR’s website only stretches back to January 2013, but this represents the highest overall ADV across all of its platforms since then.
New data from the Futures Industry Association (FIA) highlights the lack of significant growth in the volume of FX futures trading over the past several years.
According to the FIA data, 2.1 billion currency futures contracts were traded in 2017, and while this represents a 302% increase from the 2008 volumes – which is as far back as the FIA data provided goes – this hardly tells the whole story.
The data shows that between 2009 and 2010 the volume of FX futures traded jumped 160%, from 950 million contracts to almost 2.5 billion. What drove this sudden spike in trading volumes?
Nex Markets has reported an average daily volume (ADV) of $83.4 billion for spot FX trading on its platform last month. At the same time CME Group says it handled 832,000 FX contracts per day, which Profit & Loss estimates to be around $81.2 billion in notional value.
The NEX data represents a 10% decrease from the $92.7 billion ADV it recorded in March, but also a 10% increase from the $76.1 billion ADV that it recorded in April 2017.
For the 12-month period ending April 30, spot FX ADV was $86.9 billion, up 5% year-on-year.
This trend is generally consistent with volumes being reported by other platforms – Profit & Loss previously reported that Cboe FX, GTX and FXSpotStream all reported volumes that were down month-on-month, but up compared to April 2017.
Integral has begun reporting the monthly average daily volume (ADV) of FX products traded across its platforms, revealing that in April this ADV was $35 billion.
The firm says that this figure is consistent with the ADV that it recorded throughout the first quarter of 2018, which were between $34.5 billion and $38.5 billion.
Speaking to Profit & Loss, Harpal Sandhu, CEO of Integral, says the decision to start publishing monthly trading volumes was driven, in part, by the ongoing curiosity from market participants regarding the platform’s growth.
The average daily volume (ADV) of trades submitted to CLS was $1.78 trillion in April, down 4.2% from March 2018, but up 17.2% year-on-year.
The ADV of swaps submitted to CLS was $1.24 trillion last month, down 2.3% from March, but up 25.5% compared to April 2017.
The spot ADV was $433 billion in April, down 9.8% month-on-month, but almost flat compared to the $435 billion of ADV that it registered the same month last year.
Forwards were the only product type where the ADV of trades submitted to CLS grew last month. The $106 billion of ADV for forwards registered in April was a 2.9% increase from March and up 14% compared to April 2017.
The three largest FX platforms to report average daily volume (ADV) have reinforced the message from the first group to report that May was a good month for the industry. All three of CME Group, NEX Markets and Thomson Reuters have reported sizeable increases in activity both month-on-month and year-on-year, with NEX rising 25% from April, CME up 34.1% and Thomson Reuters up 12.6%. All three platforms report ADV in excess of $100 billion for the third time this year, a feat last achieved in June 2015.
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"!
At the start of 2017, a single bitcoin was valued at less than $1,000, yet by mid-December it had almost hit $20,000. Investors were pouring into the space, Initial Coin Offerings (ICOs) were being launched left, right and centre and - given the limited supply of bitcoins that can ever exist - some market commentators were making wild predictions about how high the value of this asset would ultimately go.
But despite starting the year at around the $15,000 mark, the price of bitcoin has fallen to $6,671 at the time of writing and other major cryptocurrencies have suffered a similar decline. So what went wrong?
Average daily volumes (ADV) for spot FX trading on Nex Markets was $81.9 billion in July, down 15% from the $95.8 billion reported the previous month.
Although this means that the volumes on the platform compared to July 2017, this in contrast to the other platforms that have already reported their ADV for last month, which were all up year-on-year, although they all reported a similar volume dip month-on-month.
Overall, for the 12 month period ending July 2018, the spot FX ADV on Nex Markets has been $89.7 billion, up 8% compared to the 12 month period ending July 2017.
If you ever wanted an example of how an enhanced market structure – specifically around electronic trading – helps to build volumes, one need look no further than NDFs. Volumes have been climbing steadily over the past five years, indeed I am starting to think they may eclipse FX options soon, and how people trade them also appears to be shifting, to the degree that I wonder if the NDF market is giving us a glimpse into the market structure of the foreseeable future?
The average daily volume (ADV) of FX trades submitted to CLS in August was $1.6 trillion, down 2.1% from the $1.64 trillion in July.
FX Spot ADV was actually slightly up in August, according to the CLS data, rising to $425 billion from $416 billion in July.
FX Swaps ADV was down however, dropping from $1.2 trillion in July to $1.1 trillion in August. Similarly, the ADV for FX forwards went from $107 billion in July, down to $83 billion in August.
Year-on-year (YoY), the total FX ADV recorded by CLS was up 1.5% for August.
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.
CME Group, which now owns EBS, reported almost no change in trading volumes for November on both the spot FX and derivatives sides of its business.
The average daily volume (ADV) of Spot FX traded on EBS was $81.6 billion in November, down 1% month-on-month and 8% year-on-year.
This is consistent with the other spot FX platforms that have already reported last month’s volumes, most of which saw only marginal changes in trading volumes compared to October.
For the 12-month period ending November 30, the ADV on EBS for spot FX was $89.6 billion, up 6% compared to the same period one year previous.
It's the end of year It’s the end of year special podcast and Colin Lambert and Galen Stops are in jovial mood as they bring the curtain down on another busy year in the FICC industry. Listen in as they each identify a key theme from the past year and look to re-assess them with the benefit of hindsight, before moving into less certain territory by providing a price prediction for everyones favourite out-of-control child, Bitcoin.
They also – this being the season of making a wish, share their one hope for 2019, although one of them (Lambert of course) appears to have forgotten it’s the season of goodwill!
In a sensational end to the year’s podcasts, Lambert also reveals that yes, he did indeed quote from the film Love Actually in a podcast earlier this year, but he tries (and fails) to make amends by setting listeners another teaser by paraphrasing from a much more acceptable movie…in his mind at least!
The latest round of FX turnover data from a group of the world’s FX Committees show that volumes dipped slightly in October 2018 compared to April last year when they hit a new high mark. Average daily reported UK FX turnover was $2.6 trillion per day in October 2018. Although this is the third largest turnover figure on record, it represents a 4% decrease from the record high of $2.7 trillion reported in April 2018. Turnover by instrument was mixed in the UK. Spot increased for the third successive reporting period, gaining 3% compared to April 2018 to reach $775 billion traded per day. This represents a 14.5% year-on-year increase in volume.