ICAP's EBS Volumes Rise by 7% in May 2014, Still down 42% from Last Year

ICAP today released its electronic broking volumes for May 2014. At EBS, the electronic brokering system operated by ICAP, volumes increased by 7% to $73.5 billion during the month.

The results look like a small but positive rebound when compared to the prior month, as April’s totals stood at just $68.5 billion following a 23% drop, as reported by Forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this Term Magnates. On a yearly comparison basis however, the volumes of May 2014 paint a bleaker picture as they are down by a considerable 42% from the same month last year.

The increased euro 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 has most likely helped to drive up the volumes throughout the month of May for EBS, without which the downward trend in volumes might have continued. The same cannot be said about Japanese brokerages which have reported continued declines in volumes as the Japanese yen remained range-bound to the USD.

A copy of reported volumes, including across the platforms treasury and repo’s electronic business can be seen in the graphic below, excerpted from the official EBS announcement from ICAP: