Cboe FX Volumes Slipped 3% in October

The numbers remained strong compared to the dull demand in August.

Cboe FX Markets, a foreign exchange (forex) provider to the institutions, has published its monthly trading volume numbers for October. The demand for the platform’s services declined on both month-on-month and year-on-year basis.

The forex platform saw a total volume of $680.7 billion in October compared to $702 billion in the previous month. That was a monthly decline of 3 percent.

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The average trading volume (ADV) for the month slipped to $30.9 billion from September’s $31.9 billion. Both the months had 22 trading sessions.

On a year-on-year basis, the trading volumes for October slipped 6.5 percent from $728.3 billion.

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Cboe’s FX venue is part of the Cboe Global Markets and offers both spot and swap execution facilities for institutions.

Market Volatility is Again Expected in November

Similar to any other exchange, Cboe volumes peaked in March due to the increased volatility in the global markets by the Coronavirus-induced stalling of economic activities. That month, the exchange recorded a total trading volume of $1.2 trillion, but the numbers took a nosedive in the following month, with only $643.6 billion.

The reported numbers for last month were only slightly above the volumes in three months, April, May, and August. When the first two months were due to the wearing off of the sudden market volatility, August followed the market trend of slowing down due to the impact of summer holidays on the market.

Cboe is additionally focusing on the expansion of its dominance in the markets. Last month, it signed a definitive agreement for the acquisition of BIDS Trading, a broker-dealer and the operator of the United States’ largest independent block-trading ATS. The deal is expected to be closed in early 2021 as regulatory approvals are pending.

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