Cboe Reports Strong YoY Global FX Volumes in July 2018

In July global forex volumes were strong, however, the rest of the segments experienced lacklustre results.

Exchange operator Cboe Global Markets, Inc. announced its trading volumes for July 2018 and its average revenue per contract on Friday. According to the results, the exchange operator saw an increase in year-to-date average daily volume for global forex, U.S. and European equities, options and futures in July this year.

This year there were 21 trading days in July 2018. This is one more than July last year and the same as the previous month. However, this extra trading day did little to boost results because although the results were up year-to-date, volume was down on a monthly and yearly basis in nearly all categories.

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According to the statement, CBOE’s global forex segment posted the strongest yearly gains. The total notional value was $729.8 billion in July. This is an increase of 28.3 percent from July 2017, which had a total value of $569 billion. The average daily notional value (ADNV) was also up by 22.4 percent year-on-year, coming in at $33 billion in July this year.

However, when compared to June 2018 the results are less encouraging. In June, the total value was $793.7 billion – 8.1 percent more than in July. The ADNV was also 12.2 percent higher in June than in July. Looking at the trading volume on a year-to-date time frame, trading volume and ADNV was up by 38.3 percent year-on-year.

July’s lackluster performance on Cboe

In July 2018, Cboe disclosed a total trading volume for options contracts at 134.3 million. This was up 4.5 percent from July 2017, however, it was still 9.4 percent less than the previous month, which had a total trading volume of 148 million contracts. Despite the year-on-year increase in volume, the total average daily volume (ADV) was down by 0.5 percent year-on-year and 9.4 percent month-on-month.

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Despite the lackluster results, on a year-to-date ratio, the total volume up until the end of July was 1.1 billion contracts. This is an increase of 14.7 percent from the same period last year. For total ADV, this was also up by 13.9 percent year-to-date when compared to the same period last year at 7.8 million contracts.

Falling futures

Taking a look at futures, the segment posted significant yearly and monthly losses. In July, the total volume of futures contracts was 4.6 million. This is a fall of 18 percent from June’s figure of 5.7 million contracts. When compared to July last year, the decline is even larger at 22.2 percent. This is because total contract volume for futures in July last year was almost 6 million.

The total ADV for futures contracts doesn’t look much better. For July 2018, the ADV was 221,000 contracts. This is down 25.9 percent year-on-year and 18 percent month-on-month. Looking at the year-to-date figures, total volume was up 6 percent from the same time period last year, and ADV is up 5.3 percent on a year-to-date basis.

Equities followed a similar pattern in July this year. US Equities were down 14.2 percent on a total volume and total ADV basis in comparison to June this year. When compared to the same period in 2017, total volume saw a minor gain of 0.1 percent in shares, however, ADV in July was still down 4.7 percent year-on-year.

European equities echoed these results. The total notional value for Jule was up 4.5 percent year-on-year but it was still down 7.2 percent month-on-month. The total ADNV was down both month-on-month and year-on-year, with the volume of shares falling by 0.3 percent and 11.4 percent respectively.

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