Institutional trading in the currency markets showed mixed results in the last month of 2023. While Click 365, the FX platform of the Tokyo Stock Exchange (TSE), reported a volume increase of over 5%, not all institutions worldwide saw positive results.

December Decline in FX ADV

The latest data for Click 365, published today (Thursday), showed that the number of FX market transactions increased to 2,344,890, up 5.4% compared to November. The average daily volume (ADV) was 111,661. However, in a yearly comparison, the TSE's currency platform experienced a steeper decline, almost 23% lower than the results from December 2022.

Regarding overall institutional demand for forex trading , the results were mixed. Finance Magnates reported yesterday (Wednesday) the outcomes for CboeFX, FXSpotStream, Deutsche Börse's 360T, EuronextFX, and Saxo Bank.

For CboeFX and FXSpotStream, values decreased, contributing to 2% shrinkage in overall ADV for the industry. The total spot forex trading volume for CboeFX last month was $890.4 billion, marking a drop of 11.7% month-to-month (MoM). This was the lowest monthly result for the American platform since April of the previous year. Year-over-year, the monthly volume increased by over 15%.

FXSpotStream, an FX liquidity electronic distribution provider, also followed this trend with a MoM decrease of 7.5% in ADV, totaling $64.8 billion. Of this, spot transactions contributed $49.2 billion to the ADV, while the remaining $15.6 billion was attributed to other streams. Despite the monthly decline, the total ADV improved 12.51% year-over-year.

Opposing the FX Market Trend

In contrast, trading demand on European platforms increased. Last month, Deutsche Börse's 360T platform reported a slight rise in ADV, reaching $27.688 billion, an increase of 2.2% compared to the previous month's data.

EuronextFX, formerly known as FastMatch, also saw increased activity in December. The platform's ADV for the month was $24.481 billion, up 0.7% compared to November.

Saxo Bank additionally shared its December volumes, reporting a surge in forex market activity. According to official data, FX trading volumes rose 13.6% month-to-month to $13.8 billion, the highest since March of the previous year.

Saxo, with its international reach, provides contracts for differences in cryptocurrencies across various markets in the Asia-Pacific region. Despite this, the firm does not regularly disclose specific data regarding these activities. During the initial six months of 2023, the company achieved an operating profit of DKK 520 million, marking a rise of 34%.