EBS’ June Volumes Storm Higher after Brexit Fueled Volatility

ICAP has released its trading volumes that encompassed its electronic foreign exchange (FX) platform EBS for the month ending June 2016. The exchange showed strong growth, snapping out of a recent downward consolidation that had lasted for the past four months, according to an ICAP statement.

EBS’ June 2016 FX volumes had been pointed lower since January 2016, though have now rebounded strongly, helped in large part by a boost in 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 induced by the Brexit Brexit Brexit stands for British Exit, or in reference to the United Kingdom’s decision to formally leave the European Union (EU) as declared in a June 23, 2016 referendum. In a more immediate sense, a tight vote and unexpected result helped drive British pound (GBP) to lows that had not been seen in decades.The day following the referendum, former Prime Minister David Cameron resigned from office where he was replaced by Theresa May, who later resigned from office on June 7th, 2019. Active Prime Minis Brexit stands for British Exit, or in reference to the United Kingdom’s decision to formally leave the European Union (EU) as declared in a June 23, 2016 referendum. In a more immediate sense, a tight vote and unexpected result helped drive British pound (GBP) to lows that had not been seen in decades.The day following the referendum, former Prime Minister David Cameron resigned from office where he was replaced by Theresa May, who later resigned from office on June 7th, 2019. Active Prime Minis Read this Term vote at the end of last month. During June 2016, EBS’ FX volumes were disclosed at $97.4 billion daily, storming higher by a factor of 28.7% MoM from $75.7 billion in May 2016 – these latest figures are the highest since February which constituted a yearly peak of $102.6 billion.

While the rebound has been rather strong and abrupt, EBS’s latest figures are slightly lower by a factor of -3.0% YoY from $100.8 billion in June 2015. Most exchanges received a welcome boost in volumes during June, as reinforced by a shakeup in the FX market. With the surprise Brexit finality not priced in, markets reacted sharply, causing an influx of trading in the latter stages of the month.

Finally, ICAP’s US Treasury activity during June 2016 was also on the rise, climbing to $169 billion from $156.4 billion in May 2016, or 8.1% MoM.