US Election Flows Help Thomson Reuters Spot FX Volumes Rebound in November

Daily spot trading volumes on currency trading platforms run by Thomson Reuters rebounded sharply last month.

Thomson Reuters (NYSE:TRI) has reported its FX trading volumes for the month ending November 2016, which saw spot trades rising to its highest point since June, the company said on Tuesday.

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The standout figures were helped by a surge in flows following Americans’ shock vote to elect Donald Trump as the 45th president of the United States. However, overall trading activity took a step back at Thomson Reuters compared to the month prior.

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In particular, Thomson Reuters saw a total average daily volume (ADV) of its foreign exchange (FX) products, including spot, forwards, swaps options and non-deliverable forwards (NDF), come in at $359 billion, mounting an increase of 13.6 percent YoY from $316 billion in November 2015. Across a monthly timeframe though, the figure was slightly lower compared to October 2016, marking a drop of -1.3% MoM from $364 billion in the month earlier.

Of the $359 billion figure, $101 billion was FX spot volume compared to $258 billion for other products. Despite the monthly spot FX volume being relatively higher MoM at Thomson Reuters, November 2016 represented a good improvement over a yearly measure. The latest volumes reflect a 12.2% advance from $90 billion in FX spot volume in November 2015.

While last month’s activity did not show material changes in terms of volumes, the monthly performance was still flat, especially when weighed against other institutional exchange venues that saw a wide rebound in trading volumes during the previous month. However, the latest metrics also appear to hold onto the majority of momentum seen in at Thomson Reuters since September, which by and large erased a lackluster Q3 2016 in which volumes were trending downward.

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