BATS Hotspot Starts 2017 on a Positive Note

Trading volumes on the ECN increased materially in January 2017.

The foreign exchange trading business of BATS Global Markets that was acquired by the CBOE last year has kicked off 2017 on a positive note. The company is reporting its third highest total number over the past 12 months in January 2017.

The total foreign exchange trading volumes over Hotspot’s electronic communications network (ECN) amounted to $651.1 billion. The number is higher by 21.3 percent when compared to December 2016 and by 6 percent when compared to January 2016.

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The Average Daily Volumes (ADVs) are reported at $29.5 billion, which is higher by 21 percent when compared to the previous month and lower by 4 percent when compared to the start of 2016. The year-on-year decline in ADVs is due to calendar factors, with the total trading volume transacted on the 2nd of January amounting to $1.6 billion.

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Volatility throughout the month has been driven by political factors with comments from the new US administration taking center stage. Traditionally, the day of the European Central Bank’s meeting has also impacted volatility in the euro substantially.

Throughout the month the British pound has also provided decent two-way volatility for traders to take advantage of. The GBP currency pairs have been driven by Brexit fears and expectations, with the government of Theresa May providing plenty of information on which to trade.

The coming month is expected to continue providing ample trading opportunities with the policy actions of the new administration in the US continuing to deliver pockets of volatility.

On the final day of January 2017, which was the most active for Hotspot, the total volume transacted through the ECN was just above $40.1 billion. The amount was driven by comments by presidential advisor Navarro about the low level of the euro, aimed directly at Germany’s trade surplus.

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