ICAP’s EBS Volumes Rebound Strongly in March 2015

FX trading volumes on inter-dealer broker ICAP’s platform for electronic FX EBS have exploded in March 2015, reporting a figure of $114.5 billion, according to a recently released ICAP statement.

During the month ending March 2015, daily trading volumes on EBS surged 21.7% MoM to $114.5 billion from just $94.1 billion in February 2015. Across a yearly timeframe the figure was even more robust, undergoing a jump of 29.5% YoY from $88.4 billion in March 2014.

The recent surge in March snaps a brief decline in FX EBS volumes on ICAP’s platform. Indeed, February 2015 volumes underwent a -27.0% MoM decline from January. This figure now pales in comparison to strong March figures, helped in a large part by surges 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 propagated by the Federal Reserve’s musings of a summer rate cut.

In addition, the staunch flux of the EUR/USD pair likely contributed to the increased volumes – despite bottoming out near the 1.0400 handle last month, the EUR/USD marked fresh highs north of 1.10 on the back end of a wave of volatility that swept currency markets some weeks ago.