Euronext FX Monthly Volumes Rise 10pct, FX Tape Also Shines YoY

November 30 marked the busiest day at Euronext FX Tape since March when record peaks were established.

Euronext, which operates the biggest pan-European exchange, had one of its busiest months across its FX platforms in November.

In terms of its aggregated monthly turnover, Euronext FX reported $452 billion, which is up 10 percent from $409 billion that changed hands in the previous month.

Meanwhile, the average daily volume on the spot foreign exchange market of Euronext stood at $21.5 billion, which is up 15 percent compared to October’s $18.7 billion. On a yearly timetable, the figure is higher by 44 percent from $14.9 billion reported back in November 2019.

The average trading volume in 2019 was below the $20 billion mark, but volume has jumped to record levels this year due to frenzied buying and selling activities. The trading has been driven by investor fears that despite the new vaccines, the coronavirus will continue to put a damper on the world economy.

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FX Tape Also Benefits from a Boom in Trading

Euronext FX Tape also reported one of its strongest metrics since it was launched three years ago. The multi-broker venue reported $129 billion per day and $2.7 trillion in total national turnover. The ADV figure marks a 10.2 percent monthly increase and an impressive 75 percent year-on-year increase. Moreover, November 30 marked the busiest day at the Tape service since March when record peaks were established.

Euronext FX Tape is modelled on similar projects for other asset classes such as equities, and it consists of ECNs, banks, and other financial institutions engaged in the FX market to provide a last-sale data feed with price, size and timestamps. The idea itself makes sense due to the decentralized and international nature of the FX markets and the lack of a single regulatory authority sitting above it.

Looking for beneficiaries in an ugly market, Euronext’s numbers also followed stronger trading volumes from rival foreign exchange venues as concerns over the economic impact from the coronavirus outbreak sent investors hunting for instruments that limited risk exposure.

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