MOEX, Integral Also Grapple with Lower FX Volumes in October

The secular slowdown prompted FX traders on Integral and Moex platforms to stay on the sidelines, holding down volumes.

FX trading volumes continue to decline at major institutional platforms as industry figures show the interest faded somewhat in the third quarter of the year after the sheer weight of bets on policies eased.

The latest major player to reveal its metrics was Moscow Exchange (MOEX), Russia’s largest institutional trading venue, which today said that only RUB 24.2 trillion ($380 billion) in October, down 20 percent from RUB 30.4 trillion in 2018. This figure is also lower by four percent when compared with RUB 25.1 trillion ($384 billion) in September 2019.

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Average daily trading volumes at MOEX’s FX market also fell by one fifth to RUB 1,053 billion ($16.4 billion) from RUB 1,323.7 billion ($20.1 billion) in October 2018. Further, the ADV figure declined by 12 percent from RUB 1,193 billion ($18.4 billion) in the previous month.

MOEX enjoyed a surge in FX volumes to fresh highs earlier this year, although the growth appears to have slowed considerably since the summer months.

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The same trend was highlighted at major FX platforms

The slowdown also prompted many traders on Integral’s trading platforms to stay on the sidelines, holding down volumes in October. Integral’s Open Currency Exchange (OCX) reported $36.4 billion in volumes for the last month, down slightly from September’s figure when average daily volumes topped $37.3 billion.

Nevertheless, October 2019 volumes were above those reached last year as the latest metrics represent an increase of 5.2 percent compared to October 2018.

Clients of the OCX pay a monthly fee for access to the exchange, instead of per-trade fees. While it initially launched with a monthly subscription cost of $275, it was soon lowered to $2.75 per million to accommodate the trading volume of each user, rather than imposing an even charge to clients of all sizes.

Trading desks at some of the largest players in the foreign exchange market were also grappling with lower volumes. The trend of weaker turnover was observed in the monthly figures from FXSpotStream LLC and the FX trading venue of Euronext.

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