Cboe FX Markets Posts Monthly Dip in Trading, YoY Demand Jumps 11%

Monday, 01/08/2022 | 07:38 GMT by Arnab Shome
  • The ADV for the month came in at $38.18 billion.
  • Despite the monthly dip, demand in July remains stronger than most of 2021.
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Cboe FX Markets, an institutional venue for spot foreign exchange trading, reported a sharp monthly dip in trading volumes for July, seemingly with the effects of the summer holidays on the markets.

The total volume of spot forex trading in July came in at $801.9 billion, which went down from the previous month’s $873.6 billion. That was a month-over-month decline of more than 8 percent. The monthly dip came after the trading volumes on the platform remained flat for two consecutive months.

The average daily volume (ADV) of trading for the month with 21 trading days came in at $38.18 billion, which is down from last month’s $39.7 billion when there were 22 trading days. Despite the monthly dip, demand in July remains stronger than in last April and January, as well as most of 2021.

Strong YoY Demand

On a year-over-year basis, the spot forex trading volume on Cboe has strengthened by 11.4 percent. The platform brought in $719 billion in July 2021, which was much lower than last month. Additionally, ADV strengthened by 16.8 percent from $32.6 billion.

Headquartered in Chicago, Cboe runs one of the largest derivatives exchanges in the United States. Moreover, activities on its spot forex market indicate the overall sentiment of the institutional traders.

Last week, Cboe released its financials for Q2 2022, reporting $16.6 million in net revenue for Global FX, which is a yearly increase of 20 percent. It was pushed by a higher net transaction and clearing fees. However, there was a decline of around 3 percent from the first quarter of the year.

“Activity across our ecosystem – cash, data and derivatives – was robust,” said Edward Tilly, Chairman and CEO at Cboe Global Markets.

Cboe FX Markets, an institutional venue for spot foreign exchange trading, reported a sharp monthly dip in trading volumes for July, seemingly with the effects of the summer holidays on the markets.

The total volume of spot forex trading in July came in at $801.9 billion, which went down from the previous month’s $873.6 billion. That was a month-over-month decline of more than 8 percent. The monthly dip came after the trading volumes on the platform remained flat for two consecutive months.

The average daily volume (ADV) of trading for the month with 21 trading days came in at $38.18 billion, which is down from last month’s $39.7 billion when there were 22 trading days. Despite the monthly dip, demand in July remains stronger than in last April and January, as well as most of 2021.

Strong YoY Demand

On a year-over-year basis, the spot forex trading volume on Cboe has strengthened by 11.4 percent. The platform brought in $719 billion in July 2021, which was much lower than last month. Additionally, ADV strengthened by 16.8 percent from $32.6 billion.

Headquartered in Chicago, Cboe runs one of the largest derivatives exchanges in the United States. Moreover, activities on its spot forex market indicate the overall sentiment of the institutional traders.

Last week, Cboe released its financials for Q2 2022, reporting $16.6 million in net revenue for Global FX, which is a yearly increase of 20 percent. It was pushed by a higher net transaction and clearing fees. However, there was a decline of around 3 percent from the first quarter of the year.

“Activity across our ecosystem – cash, data and derivatives – was robust,” said Edward Tilly, Chairman and CEO at Cboe Global Markets.

About the Author: Arnab Shome
Arnab Shome
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About the Author: Arnab Shome
Arnab is an electronics engineer-turned-financial editor. He entered the industry covering the cryptocurrency market for Finance Magnates and later expanded his reach to forex as well. He is passionate about the changing regulatory landscape on financial markets and keenly follows the disruptions in the industry with new-age technologies.
  • 6365 Articles
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