BATS Hotspot Starts 2017 on a Positive Note

The foreign exchange trading business of BATS Global Markets that was acquired by the CBOE last year has kicked off 2017 on a positive note. The company is reporting its third highest total number over the past 12 months in January 2017.

The total foreign exchange trading volumes over Hotspot’s Electronic Communications Network (ECN) Electronic Communications Network (ECN) Electronic Communications Network or ECNs are execution venues which are providing the infrastructure for matching buyers with sellers. Electronic trading is traditionally used in OTC products and outside of exchanges. An ECN normally functions as an electronic system that disseminates orders entered by market makers to third parties. In doing so, an ECN permits the orders to be executed against in whole or in part. The most common products that are traded on ECNs are stocks and currencies, maki Electronic Communications Network or ECNs are execution venues which are providing the infrastructure for matching buyers with sellers. Electronic trading is traditionally used in OTC products and outside of exchanges. An ECN normally functions as an electronic system that disseminates orders entered by market makers to third parties. In doing so, an ECN permits the orders to be executed against in whole or in part. The most common products that are traded on ECNs are stocks and currencies, maki Read this Term) amounted to $651.1 billion. The number is higher by 21.3 percent when compared to December 2016 and by 6 percent when compared to January 2016.

The Average Daily Volumes (ADVs) are reported at $29.5 billion, which is higher by 21 percent when compared to the previous month and lower by 4 percent when compared to the start of 2016. The year-on-year decline in ADVs is due to calendar factors, with the total trading volume transacted on the 2nd of January amounting to $1.6 billion.

Volatility throughout the month has been driven by political factors with comments from the new US administration taking center stage. Traditionally, the day of the European Central Bank’s meeting has also impacted volatility in the euro substantially.

Throughout the month the British pound has also provided decent two-way volatility for traders to take advantage of. The GBP currency pairs have been driven by Brexit Brexit Brexit stands for British Exit, or in reference to the United Kingdom’s decision to formally leave the European Union (EU) as declared in a June 23, 2016 referendum. In a more immediate sense, a tight vote and unexpected result helped drive British pound (GBP) to lows that had not been seen in decades.The day following the referendum, former Prime Minister David Cameron resigned from office where he was replaced by Theresa May, who later resigned from office on June 7th, 2019. Active Prime Minis Brexit stands for British Exit, or in reference to the United Kingdom’s decision to formally leave the European Union (EU) as declared in a June 23, 2016 referendum. In a more immediate sense, a tight vote and unexpected result helped drive British pound (GBP) to lows that had not been seen in decades.The day following the referendum, former Prime Minister David Cameron resigned from office where he was replaced by Theresa May, who later resigned from office on June 7th, 2019. Active Prime Minis Read this Term fears and expectations, with the government of Theresa May providing plenty of information on which to trade.

The coming month is expected to continue providing ample trading opportunities with the policy actions of the new administration in the US continuing to deliver pockets of volatility.

On the final day of January 2017, which was the most active for Hotspot, the total volume transacted through the ECN was just above $40.1 billion. The amount was driven by comments by presidential advisor Navarro about the low level of the euro, aimed directly at Germany’s trade surplus.