Leading ECN Hotspot FX saw a decline in trade volumes from a month earlier (October). Volumes have been on the dip during 2012 and the market is preparing for a warmer 2013.
In the first quarter of 2012, the company modified its quarterly revenue capture and monthly equity volume statistics in order to provide data specific to its U.S. equity market making activity within the Market Making segment. The company’s revenue capture and volume statistics previously also included U.S. institutional sales activity. In the second quarter of 2012, Knight modified the reporting of Knight Hotspot FX notional dollar value traded volume to count one side of the transaction. The company previously counted total client volume to include both sides of the transaction. The company posts its U.S. equity market making and Knight Hotspot FX volume statistics to its web site each month, and discloses, in quarterly SEC filings, its U.S. equity market making revenue capture. The company’s web site has been updated to show the new monthly volume statistics dating back to the beginning of 2010.
In November 2012, Hotspot FX posted an Average Daily Volume (ADV) of $21.6 billion with a total of $475.9 billion transacted on the platform. Among publicly reported spot FX volumes (Hotspot FX, ICAP/EBS, Reuters), Hotspot FX accounted for 9.2% of the market in November 2012 up from 8.6% in November 2011, continuing the trend of consistent monthly Year-over-Year market share growth.
November 2012 Statistics (Single Count, USD):
- Hotspot FX posted an ADV of $21.6 billion. (based on 22 trading days)
- ADV decreased 4.8% versus October 2012. (October 2012 ADV: $22.7 billion)
- ADV decreased 22.4% versus November 2011. (November 2011 ADV: $27.9 billion)
- Total Volume: $475.9 billion.
USD Dollar Value Traded Average Daily Volume (ADV)
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November 2012 $475.9 Billion $21.6 Billion
November 2011 $613.2 Billion $27.9 Billion
In November 2012, the Asian session gained +1.55% in market share as trading activity during this time zone was at a record high. The European session continued to increase steadily by .53%, while the Americas session contracted by 2.09%.
Volume percentages by time zone were:
Asia Europe Americas
Volume Percentage (Nov 2012) 15.62% 46.90% 37.47%
Volume Percentage (Oct 2012) 14.07% 46.37% 39.56%