KCG has posted August volume data for Hotspot, its FX trading platform. During the month, average daily volumes fell 2.1% from July’s results to $28.0 billion, but were 34% above the same period last year. Total volume during August was $616.9 billion. The overall decline from June’s year high in volumes, is similar to contraction that was witnessed at rival ECN platforms, Thomson Reuters and FXall, but well above the underperformance taking place at EBS.
In individual currencies, there were some interesting data points. EURUSD trading fell from 30.52% of all volume to 26.90%, while the USDJPY, GBPUSD, and USDCHF saw increases in market share. The rise of market share in the USDJPY from 12.94% to 13.74% occurred even as activity in the yen was muted during August.
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Overall declines in FX volumes during August, were affected by the typical seasonal slowdown experienced during the summer. Similar declines were seen in KCG’s equity and fixed income volumes.
On the news, shares of KCG (KCG:N) are trading unchanged in pre-market trading at $8.45. Since the finalizing of the Knight Capital and Getco merger, shares have been under pressure, and are down around 25% from their July highs. Shares have been affected by concerns among traders, that US regulators will apply new rules to restrict high frequency trading, which could lead to decreased volumes for KCG and increased platform monitoring expenses.