Hotspot FX Volumes Down in July

Hotspot FX an ECN provider announces strong monthly trade figures for June 2012. Overall, July 2012 figures were 17% below

Hotspot FX an ECN provider announces strong monthly trade figures for June 2012. Overall, July 2012 figures were 17% below both June 2012 and July 2011 figures. The figures matched declines in volume being experienced at all reporting venues. Among individual currencies, the most notable movement was in the EURCHF where volumes more than doubled and were the 13th most traded Forex pair. With the EURCHF stuck just above its 1.2000 price floor, and being a dead trade for most of the year, the increase in volume should raise eyebrows among Forex traders.

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Volume Snapshot

Hotspot FX volumes declined in July, in line with declines experienced at all other reporting venues. Average Daily Volume (ADV) contracted 17.1% to $25.9 billion with a total of $570.8 billion transacted on the platform. Among publicly reported spot FX volumes (Hotspot FX, ICAP/EBS, Reuters, FXall), Hotspot FX’s market share was 9.2% in July 2012; up from 8.1% in July 2011 (Market share was down from June 2012 figure of 9.2%)

July 2012 Statistics (Single Count, USD)

  • Hotspot FX posted an ADV of $25.9 billion. (based on 22 trading days)
  • ADV decreased 17.1% versus June 2012. (June 2012 ADV: $31.3 billion)
  • ADV decreased 16.5% versus July 2011. (July 2011 ADV: $31.1 billion)
  • Total Volume: $570.8 billion.

Monthly Statistics:

 USD Dollar Value Traded            Average Daily Volume (ADV)

July 2012 $570.8 Billion                                              $25.9 Billion

July 2011 $652.2 Billion                                              $31.1 Billion

Volume Breakdown

In July 2012, both the Asian and American sessions decreased by 1.25% and .21% respectively. Conversely, the European session increased for the third straight month by 1.45%.

Volume percentages by time zone were:

 Asia            Europe              Americas

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Volume Percentage (July 2012) 10.24%            46.99%                 42.78%

Volume Percentage (June 2012) 11.49%            45.54%                 42.99%

The Top five currency pairs by volume percentage were as follows:

Currency Pair EUR/USD       AUD/USD         GBP/USD         USD/JPY         USD/CAD

Percentage 41.60%            12.82%              11.17%              9.10%            6.58%

In July 2012, the listing of our Top 10 pairs remained unchanged; however volume fluctuations were experienced amongst them. Most notable, AUD/USD experienced the largest increase (+1.02%) firming its position as our 2nd most active pair. Alternatively, the 1.54% decrease in USD/JPY solidified its #4 position. Overall, the remaining pairs in the Top 20 experienced an increase in market share and had a slight shuffling in ranks. The largest mover, EUR/CHF remained our 13th most active pair and accounted for 1.35% of volume on the platform (+.75%). Lastly, USD/RUB and USD/ZAR returned to the Top 20 listing while GBP/CAD and USD/SEK dropped off.

Relative Volume Chart

Hotspot’s July compares to the following results from other reporting venues:

 July 2012 vs. June 2012       July 2012 vs. July 2011 

Hotspot FX                                         -17%                                             -17% 

EBS/ICAP                                          -22%                                              -41%

Reuters                                               -9%                                               -14%

FXall (Active Trading Segment)              -20%                                             -3%

CME                                                    -24%                                             -10%

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