Intercontinental Exchange FX Trading Volumes Drop 24% in February
- The figures remained higher year-on-year as the foreign exchange market entered into a new cyclical high in terms of volatility, but after several months of steady activity, in February trading ranges took over.
According to a corporate announcement, the average daily volumes (ADV) traded on the 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 futures and options market, including the network of exchanges and Clearing Clearing Clearing is a general term that simply means many different things depending on the subject and related industry. Most commonly, this refers to the reciprocal exchange between banks of checks and drafts, and the settlement of the differences, or the total of claims settled at a clearinghouse. In finance and banking, the word clearing has different meanings depending on the more specific business model. Moving checks from the bank where they were deposited to the bank on which they were drawn. Th Clearing is a general term that simply means many different things depending on the subject and related industry. Most commonly, this refers to the reciprocal exchange between banks of checks and drafts, and the settlement of the differences, or the total of claims settled at a clearinghouse. In finance and banking, the word clearing has different meanings depending on the more specific business model. Moving checks from the bank where they were deposited to the bank on which they were drawn. Th Read this Term houses operated by the Intercontinental Exchange, decreased materially in February.
The exchange reported that an average of 39,000 contracts changed hands in a typical trading day in February, which is lower by 24% when compared to the month of January, but remains much higher than in February 2014. The figures include U.S. dollar index futures and options.
At the time, subdued foreign exchange market activity led to a massive decline in volumes which persisted throughout the first half of 2014.
On a year-on-year basis, commodity trading continued marking gains and records. While the total ADV on the Intercontinental Exchange network declined by 6% when compared to a year ago, commodities trading increased 11%.
Brent oil, Gasoil and other oil contracts led the expansion rising by 61%, 38% and 74% respectively. During the month, daily volumes records were set in Brent, Gasoil and Total Oil futures and WTI crude oil options.
The decline in overall volumes was led by financials outside of FX, where interest rate contracts declined by 27%, while equity derivatives shed 24%.
It remains to be seen whether the decline in FX trading volumes is here to persist, just like it did in 2014. After a stellar month in January 2014, foreign exchange trading volumes dwindled for the next six months leading to financial difficulties for a number of brokerages.
The month of March has started on a positive note as the euro hit a fresh 11-year low against the U.S. dollar after Greek uncertainty and ECB easing weighed on the single currency.
According to a corporate announcement, the average daily volumes (ADV) traded on the 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 futures and options market, including the network of exchanges and Clearing Clearing Clearing is a general term that simply means many different things depending on the subject and related industry. Most commonly, this refers to the reciprocal exchange between banks of checks and drafts, and the settlement of the differences, or the total of claims settled at a clearinghouse. In finance and banking, the word clearing has different meanings depending on the more specific business model. Moving checks from the bank where they were deposited to the bank on which they were drawn. Th Clearing is a general term that simply means many different things depending on the subject and related industry. Most commonly, this refers to the reciprocal exchange between banks of checks and drafts, and the settlement of the differences, or the total of claims settled at a clearinghouse. In finance and banking, the word clearing has different meanings depending on the more specific business model. Moving checks from the bank where they were deposited to the bank on which they were drawn. Th Read this Term houses operated by the Intercontinental Exchange, decreased materially in February.
The exchange reported that an average of 39,000 contracts changed hands in a typical trading day in February, which is lower by 24% when compared to the month of January, but remains much higher than in February 2014. The figures include U.S. dollar index futures and options.
At the time, subdued foreign exchange market activity led to a massive decline in volumes which persisted throughout the first half of 2014.
On a year-on-year basis, commodity trading continued marking gains and records. While the total ADV on the Intercontinental Exchange network declined by 6% when compared to a year ago, commodities trading increased 11%.
Brent oil, Gasoil and other oil contracts led the expansion rising by 61%, 38% and 74% respectively. During the month, daily volumes records were set in Brent, Gasoil and Total Oil futures and WTI crude oil options.
The decline in overall volumes was led by financials outside of FX, where interest rate contracts declined by 27%, while equity derivatives shed 24%.
It remains to be seen whether the decline in FX trading volumes is here to persist, just like it did in 2014. After a stellar month in January 2014, foreign exchange trading volumes dwindled for the next six months leading to financial difficulties for a number of brokerages.
The month of March has started on a positive note as the euro hit a fresh 11-year low against the U.S. dollar after Greek uncertainty and ECB easing weighed on the single currency.