BATS Hotspot FX Volumes Decline in June, Lowest Since July 2014
- Third consecutive monthly decline in the face of persisting forex volatility and year-on-year contraction raise some questions
The trading volume on BATS Global Markets owned Electronic Communications Network (ECN) Electronic Communications Network (ECN) Electronic Communications Network or ECNs are execution venues which are providing the infrastructure for matching buyers with sellers. Electronic trading is traditionally used in OTC products and outside of exchanges. An ECN normally functions as an electronic system that disseminates orders entered by market makers to third parties. In doing so, an ECN permits the orders to be executed against in whole or in part. The most common products that are traded on ECNs are stocks and currencies, maki Electronic Communications Network or ECNs are execution venues which are providing the infrastructure for matching buyers with sellers. Electronic trading is traditionally used in OTC products and outside of exchanges. An ECN normally functions as an electronic system that disseminates orders entered by market makers to third parties. In doing so, an ECN permits the orders to be executed against in whole or in part. The most common products that are traded on ECNs are stocks and currencies, maki Read this Term) Hotspot FX declined for a third consecutive month, marking the beginning of the typical slowdown observed into the summer months. That said, in light of much higher figures across the industry, the year-on-year decline is a surprise.
The average daily volume in June totaled $25.7 billion, which is lower by 4 percent
The average daily volume in June totaled $25.7 billion, which is lower by 4 percent when compared to May, and by 6.5 percent when compared to a year ago, when the company was still under the KCG brand.
In contrast to Hotspot, in recent months we have seen activity at other ECNs pick up materially when compared to last year. EBS is slowly experiencing a renaissance after it lost market share to Reuters and FXall throughout 2013 and 2014. The company’s latest figures for May unveiled year-on-year growth totaling 24 percent.
While there has been some substantial news on the market throughout the month, 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 was relatively subdued in June, save for the past couple of days with the Greek exodus reigning in. The trading range for the EUR/USD in May was about 650 pips, while in June it fell to 550 pips.
The Japanese yen traders have been more active, if the Tokyo Financial Exchange figures from June are any cue to the broad market. While traders remain focused on the conclusion of the year-long Greek debt saga, the activity on the foreign exchange market could remain vibrant.
Over the next couple of months foreign exchange ECNs and brokers usually register their slowest months of the year in trading volume terms. That said, over the coming quarters volatility is likely to persist as the European Central Bank (ECB) and the Bank of Japan (BoJ) continue their quantitative easing programs and the U.S. Federal Reserve prepares to raise interest rates.
The trading volume on BATS Global Markets owned Electronic Communications Network (ECN) Electronic Communications Network (ECN) Electronic Communications Network or ECNs are execution venues which are providing the infrastructure for matching buyers with sellers. Electronic trading is traditionally used in OTC products and outside of exchanges. An ECN normally functions as an electronic system that disseminates orders entered by market makers to third parties. In doing so, an ECN permits the orders to be executed against in whole or in part. The most common products that are traded on ECNs are stocks and currencies, maki Electronic Communications Network or ECNs are execution venues which are providing the infrastructure for matching buyers with sellers. Electronic trading is traditionally used in OTC products and outside of exchanges. An ECN normally functions as an electronic system that disseminates orders entered by market makers to third parties. In doing so, an ECN permits the orders to be executed against in whole or in part. The most common products that are traded on ECNs are stocks and currencies, maki Read this Term) Hotspot FX declined for a third consecutive month, marking the beginning of the typical slowdown observed into the summer months. That said, in light of much higher figures across the industry, the year-on-year decline is a surprise.
The average daily volume in June totaled $25.7 billion, which is lower by 4 percent
The average daily volume in June totaled $25.7 billion, which is lower by 4 percent when compared to May, and by 6.5 percent when compared to a year ago, when the company was still under the KCG brand.
In contrast to Hotspot, in recent months we have seen activity at other ECNs pick up materially when compared to last year. EBS is slowly experiencing a renaissance after it lost market share to Reuters and FXall throughout 2013 and 2014. The company’s latest figures for May unveiled year-on-year growth totaling 24 percent.
While there has been some substantial news on the market throughout the month, 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 was relatively subdued in June, save for the past couple of days with the Greek exodus reigning in. The trading range for the EUR/USD in May was about 650 pips, while in June it fell to 550 pips.
The Japanese yen traders have been more active, if the Tokyo Financial Exchange figures from June are any cue to the broad market. While traders remain focused on the conclusion of the year-long Greek debt saga, the activity on the foreign exchange market could remain vibrant.
Over the next couple of months foreign exchange ECNs and brokers usually register their slowest months of the year in trading volume terms. That said, over the coming quarters volatility is likely to persist as the European Central Bank (ECB) and the Bank of Japan (BoJ) continue their quantitative easing programs and the U.S. Federal Reserve prepares to raise interest rates.