NEX Group Posts Small Rebound in June Trading Volumes

NEX Markets, the electronic markets subsidiary of NEX Group, has just published its latest trading volumes report. During the month of June, the company reports an increase of 2 percent month-on-month in its spot foreign exchange transactions business, marking $83.3 billion daily.

The number is lower by 12 percent when compared to last year, however a special factor is in play with the UK 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 referendum sharply distorting the numbers in June 2016.

For the 12 months ending June 30th 2017 the SpotFX unit of NEX Markets marked an average of $82.6 billion daily, which is lower by 5 percent when compared to the same period ending in June last year.

Trading volumes declined across the industry when compared to last year, primarily due to the distortion which Brexit volumes brought in June 2016. At the same time, monthly trading volumes in June 2017 have been widely reported lower by foreign exchange brokers. The main reason for the decline is low Volatility Volatility In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders Read this Term when compared to the month of May.

Save for the final trading days of last month, trading activity declined materially with recent ranges being broken only during the final days of June.

NEX Group’s electronic trading subsidiary also marked a decline in trading of US Treasuries on a month-on-month and year-on-year basis to a total of $166.1 billion daily. US and European Repos rose by 13 and 23 percent year-on-year to $226.5 billion and $220.2 billion.