Cboe Reports Weak Trading Volumes Across All Business Lines

Cboe Global Markets, Inc. (Cboe: CBOE | NASDAQ: CBOE) has reported ‎weak trading volumes in April 2020, which hit all business segments that enjoyed record levels of activity in March when the Volatility Volatility In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders Read this Term provided pockets of opportunity.

During April 2020, Cboe disclosed a total trading volume for options contracts at 200 million, down 23 percent from 263 million in the previous month. Year-over-year, this figure was up 46 percent from 137 million contracts back in April 2019.

This corresponded to an average daily volume (ADV) of 9.56 million contracts per day, which was up by the same percentage year-on-year from 6.5 million contracts per day in the same month a year earlier.

Nevertheless, the figures illustrated a different pattern at the Cboe over a monthly interval, which in terms of total ADV volumes during April 2020 marked a drop of 23 percent month-on-month from 11.97 million contracts in March 2020.

Across its futures business, Cboe Global’s total volumes came in at 2.34 million contracts in April 2020, down by 48 percent over a yearly basis from 4.56 million contracts a year back. The figure also marks a sharp drop of 69 percent month-on-month when compared with 7.54 million in March 2020. The exchange yielded an average daily volume (ADV) of 112,000 contracts per day, which was lower by two thirds from 343,000 contracts in the previous month.

FX business lags

Cboe’s institutional spot FX platform saw its average daily trading volumes amounting to $29.2 billion in April 2020, down 47 percent month-over-month from $55 billion in March 2020.

On a year-over-year basis, the ADV numbers released by Cboe FX, formerly Hotspot, illustrated weaker performance, falling by 7.2 percent when weighed against $31.5 billion a year earlier.‎

Looking at its total volumes, Cboe FX inked a figure of $643 billion in April 2020, down 46 percent on a month-over-month basis from $1.2 ‎trillion in March 2020‎. This figure was even lower by 7 percent year-over-year when weighed against $693 billion in April 2019.

Cboe FX turnover crossed the $1 trillion milestone last month amid Coronavirus Coronavirus The outbreak of Covid-19 or Coronavirus in early 2020 has since redefined the financial services industry. Brokers have been forced to quickly adapt to several changes, both positive and negative.This includes the FX industry, which saw surges in volumes across the retail and institutional space in Q1 2020. This trend can be explained by an outflow of volatility, coupled with countries taking major moves to stabilize their respective economies.In conjunction with uncertainty caused by the virus, The outbreak of Covid-19 or Coronavirus in early 2020 has since redefined the financial services industry. Brokers have been forced to quickly adapt to several changes, both positive and negative.This includes the FX industry, which saw surges in volumes across the retail and institutional space in Q1 2020. This trend can be explained by an outflow of volatility, coupled with countries taking major moves to stabilize their respective economies.In conjunction with uncertainty caused by the virus, Read this Term-driven volatility that has shaken awake previously slumbering FX markets.