The month of December is typically marked across the industry as a month of consolidation, with the seasonal factors of reduced trading activity around Christmas and new year’s holidays driving trading volumes at brokerages to lower levels.
Saxo Bank wasn’t an exception in the final month of 2014, as it marked a decline of 4% in volumes traded at the Danish brokerage. The firm reported that $287 billion changed hands throughout the month with an average daily volume figure totalling $12.5 billion, a more pronounced 16% drop.
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On a year-on-year basis volumes were higher by 22%. Meanwhile, clients’ collateral deposits continued on a solid trajectory with a 2% decline in December, just a touch below the record number reported in November 2014 at $11.37 billion.
Last year has been difficult for the industry overall, with the first half of 2014 having the lowest FX volatility numbers in 21 years. Total trading volumes at Saxo Bank for 2014 were lower by 9% when compared to 2013.
However there’s been a silver lining – that of record high clients’ collateral deposits. On a year-on-year basis those were reported by the company to be higher by 38%, ending 2014 on a high note at around $11.1 billion.