As Volatility Returns, Cboe FX Volumes Rebound from Summer Lull

The exchange’s institutional FX trading venue saw its average daily trading volumes amounting to $35.7 billion.

After a period of low trading activity through the last two months, Cboe’s institutional spot FX platform witnessed a slight uptick in the month ending September 2018. The venue saw a ‎positive performance as a rise in volatility from summer lull encouraged more buying and selling ‎of currencies at major institutional marketplaces.‎

Following a bumpy period over the summer, Cboe FX disclosed a total trading volume of $715 billion in September 2018, down 11 percent on a month-over-month basis from ‎$802 ‎billion in August 2018‎. In a different pattern, the figure was even higher by three percent year-over-year when weighed against $695 billion in September 2017.

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Also, the exchange’s institutional FX trading venue saw its average daily trading volumes amounting to $35.7 billion in September 2018, up 2.6 percent month-over-month from $34.8 billion in August 2017.

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On a year-over-year basis, the ADV figure illustrated a more upbeat picture, climbing by eight percent when weighed against $33.1 billion a year earlier.‎

The numbers released by Cboe FX, formerly Hotspot, follows a strong start for the year, where the institutional venue’s turnover outperformed in January after securing $938 billion in volumes, while its ADV hit a record $44.0 billion in February 2018.

September had been an active month, with volatility benefiting from rising geopolitical tensions, concerns about US-led trade wars with several countries, and the prospect a global economic growth boom nearing its peak. Key currency pairs have departed its wait-and-see mode seen in July and August where they were stuck in narrow price ranges.

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