Copenhagen-based Saxo Bank reported September figures showing decreased trading volumes month-over-month (MoM), despite higher customer deposit levels for the period. Daily average trading volumes fell slightly over the previous month by 1% or $100 million from $10.6 bn in August to $10.5bn in September. While this MoM change is negligible in comparison to the total figures, the daily average volume of $10.5bn is still $4.5bn lower than the $15bn average computed January through August per month.
Changes in monthly trading volumes fell by $12bn MoM, from $232bn in August to $220bn in September. Despite lower trading volumes, clients’ collateral deposits for trading grew by $390m MoM, up from 7.14bn in August to 7.53bn in September. This recent trend of decreasing volumes and rising assets was covered by Forex Magnates earlier last month, when Saxo had similar results in August 2013 (compared with July).
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While the decrease in trading volumes could be indicative of a carry-over or lingering of the summer lag effect where trading volumes were generally lower across most of the industry, September has already recorded lower figures from other major FX providers.
The increase in total collateral deposits from clients could either indicate that clients had winning positions that gained as foreign exchange markets shifted, or due to risk aversion as a result of heightened volatility and geo-political uncertainties, such as in Syria, or it could be a combination of such factors.
Saxo Bank has launched a series of initiatives, such as the new office in South America announced earlier this week, and the release last week of new exotic currency pairs and gold related instruments adding to its growing list of product innovations and traded contracts as the bank expects volumes grow.