US Election Flows Help Thomson Reuters Spot FX Volumes Rebound in November

Thomson Reuters (NYSE:TRI) has reported its FX trading volumes for the month ending November 2016, which saw spot trades rising to its highest point since June, the company said on Tuesday.

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The standout figures were helped by a surge in flows following Americans’ shock vote to elect Donald Trump as the 45th president of the United States. However, overall trading activity took a step back at Thomson Reuters compared to the month prior.

In particular, Thomson Reuters saw a total average daily volume (ADV) of its foreign Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term (FX) products, including spot, forwards, Swaps Swaps Swaps can be defined as a derivate contact composed of two parties that exchange to cash flow between two separate financial instruments.They are generally divided into two categories. This includes contingent claims (options) and forward claims, where forward contracts, swaps, and exchange-traded funds (ETFs) are exchanged. Commodity price, equity price, interest rate, and foreign exchange rate are common variables used as one of the cash flows in swaps upon initiation. Different Types of Swaps Swaps can be defined as a derivate contact composed of two parties that exchange to cash flow between two separate financial instruments.They are generally divided into two categories. This includes contingent claims (options) and forward claims, where forward contracts, swaps, and exchange-traded funds (ETFs) are exchanged. Commodity price, equity price, interest rate, and foreign exchange rate are common variables used as one of the cash flows in swaps upon initiation. Different Types of Swaps Read this Term options and non-deliverable forwards (NDF), come in at $359 billion, mounting an increase of 13.6 percent YoY from $316 billion in November 2015. Across a monthly timeframe though, the figure was slightly lower compared to October 2016, marking a drop of -1.3% MoM from $364 billion in the month earlier.

Of the $359 billion figure, $101 billion was FX spot volume compared to $258 billion for other products. Despite the monthly spot FX volume being relatively higher MoM at Thomson Reuters, November 2016 represented a good improvement over a yearly measure. The latest volumes reflect a 12.2% advance from $90 billion in FX spot volume in November 2015.

While last month’s activity did not show material changes in terms of volumes, the monthly performance was still flat, especially when weighed against other institutional exchange venues that saw a wide rebound in trading volumes during the previous month. However, the latest metrics also appear to hold onto the majority of momentum seen in at Thomson Reuters since September, which by and large erased a lackluster Q3 2016 in which volumes were trending downward.