KCG Reports January 2014 Trading Volumes, FX ADV Jumps 23% Month-Over-Month
- KCG has today reported trade volumes for the first month of 2014, showing an increase of 23% for its Foreign Exchange Average daily volumes (ADV) in KCG Hotspot which rose to $34.1 billion per day, up $6.5 billion MoM .
According the latest performance results from New Jersey-based KCG Holdings, Inc., the broker today released trade volumes for the month of January 2014.
KCG Hotspot averaged $34.1 billion per day in notional foreign exchange dollar volume, rising by $6.5 billion over December’s ADV of $27.6 billion, an increase of over 23% month-over-month (MoM).
This would put total notional FX volumes traded during January just at three quarters of a trillion dollars, or $749.4 billion, calculated by the total number of trading days in the month.
From a year-over-year (YoY) perspective, this January's totals were up nearly 26% from $27.1 billion in January 2013.
The company had compared its performance to leading reporting venues, which in the excerpt below shows similar increases in January 2014 from a MoM perspective, with YoY changes weighted heavily in the favor of KCG with the only positive figures when compared from that period:
![January 2014 comparisons [source KCG]](https://www.financemagnates.com/wp-content/uploads/fxmag/2014/02/image027.png)
In market-making, KCG averaged $28.0 billion dollar volume traded, 8.4 billion shares traded, and 4.1 million trades per day in U.S. equities.
The firm reported that its Global Execution Execution Execution is the process during which a client submits an order to the brokerage, which consequently executes it resulting in an open position in a given asset. The execution of the order occurs only when it is filled. There is typically a time delay between the placement of the order and the execution which is called latency.In the retail FX space, reliable brokers always strive to deliver best execution to their clients in order to maintain a solid business relationship with them. This is a common marketing point of emphasis by brokers, whose action execution varies considerably from company to company. When execution prices are not matching the submitted price the client is charged or credited the difference resulting from the negative or positive slippage.Slippage is a very contentious issue among retail traders, which can lead to issues. Many traders view levels of slippage at brokers as a key determinant for their business. Best Execution a Legal ObligationBrokers are required by law to diver to their clients the best execution possible. Some regulators are requiring brokers to submit execution stats in order to assess the quality of their services. Other brokers are regularly posting execution statistics in order to boost the confidence of their clients in the best execution commitment of the company.Best execution has been a point of emphasis in recent years from both retail and institutional players in the FX industry. Negotiating and executing transactions in order to promote a robust, fair, open, liquid and appropriately transparent FX market is identified as one of the six main principles outlined in the FX Global Code of Conduct, which came into effect in 2018. Execution is the process during which a client submits an order to the brokerage, which consequently executes it resulting in an open position in a given asset. The execution of the order occurs only when it is filled. There is typically a time delay between the placement of the order and the execution which is called latency.In the retail FX space, reliable brokers always strive to deliver best execution to their clients in order to maintain a solid business relationship with them. This is a common marketing point of emphasis by brokers, whose action execution varies considerably from company to company. When execution prices are not matching the submitted price the client is charged or credited the difference resulting from the negative or positive slippage.Slippage is a very contentious issue among retail traders, which can lead to issues. Many traders view levels of slippage at brokers as a key determinant for their business. Best Execution a Legal ObligationBrokers are required by law to diver to their clients the best execution possible. Some regulators are requiring brokers to submit execution stats in order to assess the quality of their services. Other brokers are regularly posting execution statistics in order to boost the confidence of their clients in the best execution commitment of the company.Best execution has been a point of emphasis in recent years from both retail and institutional players in the FX industry. Negotiating and executing transactions in order to promote a robust, fair, open, liquid and appropriately transparent FX market is identified as one of the six main principles outlined in the FX Global Code of Conduct, which came into effect in 2018. Read this Term Services, including agency-based algorithmic and EMS trade volumes through Knight Direct and GETAlpha averaged an aggregate 272.4 million shares traded per day in U.S. equities, where it maintains a leading market share of volumes. KCG BondPoint averaged $140.5 million per day in fixed income par value, according to the company press release.
KCG Hotspot provided a chart showing its trade activity in Foreign Exchange on an hourly basis across its most traded pairs, with the largest peak seen as the European session transitions into the New York Opening:
![[Source: KCG Hotspot]](https://www.financemagnates.com/wp-content/uploads/fxmag/2014/02/image034.png)
As for the overall market conditions in January, consolidated U.S. equity volumes averaged $272.6 billion in dollar volume and 6.9 billion shares traded per day, and the realized 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 can be successful in both low and high volatile environments, but the strategies employed are often different depending upon volatility. Why Too Much Volatility is a ProblemIn the FX space, lower volatile currency pairs offer less surprises, and are suited to position traders.High volatile pairs are attractive for many day traders, due to quick and strong movements, offering the potential for higher profits, although the risk associated with such volatile pairs are many. Overall, a look at previous volatility tells us how likely price will fluctuate in the future, although it has nothing to do with direction.All a trader can gather from this is the understanding that the probability of a volatile pair to increase or decrease an X amount in a Y period of time, is more than the probability of a non-volatile pair. Another important factor is, volatility can and does change over time, and there can be periods when even highly volatile instruments show signs of flatness, with price not really making headway in either direction. Too little volatility is just as problematic for markets as too much, we uncertainty in excess can create panic and problems of liquidity. This was evident during Black Swan events or other crisis that have historically roiled currency and equity markets. 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 can be successful in both low and high volatile environments, but the strategies employed are often different depending upon volatility. Why Too Much Volatility is a ProblemIn the FX space, lower volatile currency pairs offer less surprises, and are suited to position traders.High volatile pairs are attractive for many day traders, due to quick and strong movements, offering the potential for higher profits, although the risk associated with such volatile pairs are many. Overall, a look at previous volatility tells us how likely price will fluctuate in the future, although it has nothing to do with direction.All a trader can gather from this is the understanding that the probability of a volatile pair to increase or decrease an X amount in a Y period of time, is more than the probability of a non-volatile pair. Another important factor is, volatility can and does change over time, and there can be periods when even highly volatile instruments show signs of flatness, with price not really making headway in either direction. Too little volatility is just as problematic for markets as too much, we uncertainty in excess can create panic and problems of liquidity. This was evident during Black Swan events or other crisis that have historically roiled currency and equity markets. Read this Term for the S&P was 12.8. The company noted that in January there were 21 trading days in U.S. equities, 22 trading days in foreign exchange, and 21 trading days in fixed income. An excerpt of reported metrics can be seen in the graphic below from the company's official press release today:
![KCG Jan Volumes Excerpt [Source: KCG]](https://www.financemagnates.com/wp-content/uploads/fxmag/2014/02/KCGJANvols.jpg)
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According the latest performance results from New Jersey-based KCG Holdings, Inc., the broker today released trade volumes for the month of January 2014.
KCG Hotspot averaged $34.1 billion per day in notional foreign exchange dollar volume, rising by $6.5 billion over December’s ADV of $27.6 billion, an increase of over 23% month-over-month (MoM).
This would put total notional FX volumes traded during January just at three quarters of a trillion dollars, or $749.4 billion, calculated by the total number of trading days in the month.
From a year-over-year (YoY) perspective, this January's totals were up nearly 26% from $27.1 billion in January 2013.
The company had compared its performance to leading reporting venues, which in the excerpt below shows similar increases in January 2014 from a MoM perspective, with YoY changes weighted heavily in the favor of KCG with the only positive figures when compared from that period:
In market-making, KCG averaged $28.0 billion dollar volume traded, 8.4 billion shares traded, and 4.1 million trades per day in U.S. equities.
The firm reported that its Global Execution Execution Execution is the process during which a client submits an order to the brokerage, which consequently executes it resulting in an open position in a given asset. The execution of the order occurs only when it is filled. There is typically a time delay between the placement of the order and the execution which is called latency.In the retail FX space, reliable brokers always strive to deliver best execution to their clients in order to maintain a solid business relationship with them. This is a common marketing point of emphasis by brokers, whose action execution varies considerably from company to company. When execution prices are not matching the submitted price the client is charged or credited the difference resulting from the negative or positive slippage.Slippage is a very contentious issue among retail traders, which can lead to issues. Many traders view levels of slippage at brokers as a key determinant for their business. Best Execution a Legal ObligationBrokers are required by law to diver to their clients the best execution possible. Some regulators are requiring brokers to submit execution stats in order to assess the quality of their services. Other brokers are regularly posting execution statistics in order to boost the confidence of their clients in the best execution commitment of the company.Best execution has been a point of emphasis in recent years from both retail and institutional players in the FX industry. Negotiating and executing transactions in order to promote a robust, fair, open, liquid and appropriately transparent FX market is identified as one of the six main principles outlined in the FX Global Code of Conduct, which came into effect in 2018. Execution is the process during which a client submits an order to the brokerage, which consequently executes it resulting in an open position in a given asset. The execution of the order occurs only when it is filled. There is typically a time delay between the placement of the order and the execution which is called latency.In the retail FX space, reliable brokers always strive to deliver best execution to their clients in order to maintain a solid business relationship with them. This is a common marketing point of emphasis by brokers, whose action execution varies considerably from company to company. When execution prices are not matching the submitted price the client is charged or credited the difference resulting from the negative or positive slippage.Slippage is a very contentious issue among retail traders, which can lead to issues. Many traders view levels of slippage at brokers as a key determinant for their business. Best Execution a Legal ObligationBrokers are required by law to diver to their clients the best execution possible. Some regulators are requiring brokers to submit execution stats in order to assess the quality of their services. Other brokers are regularly posting execution statistics in order to boost the confidence of their clients in the best execution commitment of the company.Best execution has been a point of emphasis in recent years from both retail and institutional players in the FX industry. Negotiating and executing transactions in order to promote a robust, fair, open, liquid and appropriately transparent FX market is identified as one of the six main principles outlined in the FX Global Code of Conduct, which came into effect in 2018. Read this Term Services, including agency-based algorithmic and EMS trade volumes through Knight Direct and GETAlpha averaged an aggregate 272.4 million shares traded per day in U.S. equities, where it maintains a leading market share of volumes. KCG BondPoint averaged $140.5 million per day in fixed income par value, according to the company press release.
KCG Hotspot provided a chart showing its trade activity in Foreign Exchange on an hourly basis across its most traded pairs, with the largest peak seen as the European session transitions into the New York Opening:
As for the overall market conditions in January, consolidated U.S. equity volumes averaged $272.6 billion in dollar volume and 6.9 billion shares traded per day, and the realized 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 can be successful in both low and high volatile environments, but the strategies employed are often different depending upon volatility. Why Too Much Volatility is a ProblemIn the FX space, lower volatile currency pairs offer less surprises, and are suited to position traders.High volatile pairs are attractive for many day traders, due to quick and strong movements, offering the potential for higher profits, although the risk associated with such volatile pairs are many. Overall, a look at previous volatility tells us how likely price will fluctuate in the future, although it has nothing to do with direction.All a trader can gather from this is the understanding that the probability of a volatile pair to increase or decrease an X amount in a Y period of time, is more than the probability of a non-volatile pair. Another important factor is, volatility can and does change over time, and there can be periods when even highly volatile instruments show signs of flatness, with price not really making headway in either direction. Too little volatility is just as problematic for markets as too much, we uncertainty in excess can create panic and problems of liquidity. This was evident during Black Swan events or other crisis that have historically roiled currency and equity markets. 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 can be successful in both low and high volatile environments, but the strategies employed are often different depending upon volatility. Why Too Much Volatility is a ProblemIn the FX space, lower volatile currency pairs offer less surprises, and are suited to position traders.High volatile pairs are attractive for many day traders, due to quick and strong movements, offering the potential for higher profits, although the risk associated with such volatile pairs are many. Overall, a look at previous volatility tells us how likely price will fluctuate in the future, although it has nothing to do with direction.All a trader can gather from this is the understanding that the probability of a volatile pair to increase or decrease an X amount in a Y period of time, is more than the probability of a non-volatile pair. Another important factor is, volatility can and does change over time, and there can be periods when even highly volatile instruments show signs of flatness, with price not really making headway in either direction. Too little volatility is just as problematic for markets as too much, we uncertainty in excess can create panic and problems of liquidity. This was evident during Black Swan events or other crisis that have historically roiled currency and equity markets. Read this Term for the S&P was 12.8. The company noted that in January there were 21 trading days in U.S. equities, 22 trading days in foreign exchange, and 21 trading days in fixed income. An excerpt of reported metrics can be seen in the graphic below from the company's official press release today: