Interbank FX volumes up - July 2011

Daily volumes in FX are on the increase as reported by veterans of the industry.

Average daily spot volume on Thomson Reuters' platforms reached $152 billion in July, up 23% from $124 billion in July 2010. According to the vendor, the increase was caused by a 32% growth in euro volumes over June this year and 116% over July 2010, and an increase in Russian rouble volumes of 17% over June.

Interdealer broker Icap saw average daily volume on the EBS platform rise to $180.5 billion in July, up from $174.1 billion in June and up 36% year on year. "We saw positive year-on-year variances in most products during July. This was in great part due to increased market 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 surrounding European and US government debt uncertainty," said David Rutter, chief executive at Icap electronic broking in New York.

In addition, institutional 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 platform FXall this week reported a 37% increase in average daily volume during the second quarter of 2011, compared with the same period in 2010. During July, average daily volume was up 49% compared with July 2010, with a record volume of $140 billion traded on FXall on July 27.

Volatility has been the crucial factor contributing to massive gains in FX volumes. Rapid movements across all currencies as the Swiss franc experienced the biggest gain, strengthening 2.20% versus the dollar and 1.69% against the euro. The yen and euro appreciated 1.39% and 0.50%, respectively, versus the US dollar. For the quarter, the Swiss franc gained 9.64%, the euro rose 1.89% and the yen increased 3.55% versus the dollar.

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