Thomson Reuters FX Trading Volumes Highest since September 2014

Thomson Reuters has just released the total average daily volume (ADV) of foreign exchange trading across both Thomson Reuters platforms FXall and Thomson Reuters Matching. During the month of January, the total amount of foreign exchange contracts traded was $398 billion.

The figure is higher by 7% when compared to last year and by about 14% when compared to December 2014.

Average daily volume for spot trading in January was $135 billion, which is higher by 27% when compared to the seasonally weak month of December and flat year-on-year.

The figures include spot, forwards, Swaps Swaps Swaps can be defined as a derivate contact composed of two parties that exchange to cash flow between two separate financial instruments.They are generally divided into two categories. This includes contingent claims (options) and forward claims, where forward contracts, swaps, and exchange-traded funds (ETFs) are exchanged. Commodity price, equity price, interest rate, and foreign exchange rate are common variables used as one of the cash flows in swaps upon initiation. Different Types of Swaps Swaps can be defined as a derivate contact composed of two parties that exchange to cash flow between two separate financial instruments.They are generally divided into two categories. This includes contingent claims (options) and forward claims, where forward contracts, swaps, and exchange-traded funds (ETFs) are exchanged. Commodity price, equity price, interest rate, and foreign exchange rate are common variables used as one of the cash flows in swaps upon initiation. Different Types of Swaps Read this Term, options and non-deliverable forwards (NDFs).

“This was a strong start to 2015,” said Phil Weisberg, global head of FX, Thomson Reuters. “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 was comparatively high in the market, due principally to eurozone fears, and volumes were healthy as asset managers were assembling their hedging and investing strategies for the year.

This year we are expanding the services we offer to our customers and integrating our current platforms to provide users with even greater insight into the markets as well as greater abilities to act on these insights. We look forward to announcing some exciting innovations for our customers throughout the rest of 2015.”

Massive volatility on the foreign exchange market has led to dramatic shifts across major currencies. With the European Central Bank launching a quantitative easing program and the Swiss National Bank abandoning its peg, the extent to which major currencies move in the months ahead is going to depend mostly on whether or not the US Fed manages to raise interest rates.