EBS Foreign Exchange Volumes Drop by 15% in December, Overall down 12% in 2014

ICAP plc (LON:IAP) has just released a report showing average 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 trading volumes transacted through the company’s EBS platform dropped by 15% in December in a monthly comparison.

The EBS Average Daily Volume (ADV) only reached $104.8 billion in December 2014, down from $123 billion in November. This figure is still an improvement of 47% from December 2013's ADV of $71 billion.

ICAP also reported the trading volumes for the entire year of 2014 showing that overall, despite greater 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 in the latter part of the year, the ADV reached only $92.5, down 12% from 2013's ADV of $105.4 billion.

ICAP's total electronic trading volumes, including US Treasury, US Repo, European Repo and EBS, reached $674 billion in December 2014. This figure is down by a drop of 3% from November, but a slight rise of 1% from December 2013. The yearly ADV also went down from 1% from $728.3 billion to $719.1 billion.