Ever since July, the electronic FX business of CBOE is performing briskly. Formerly known as Hotspot FX and BATS Hotspot, it was rebranded to get into a broader portfolio of markets.
For a fourth consecutive month, the trading volumes on CBOE FX are trending higher. During November, the average daily trading volume transacted via the electronic communications network (ECN) totaled $34 billion, a figure which is higher by 6 percent month-on-month. Compared to the previous year, that was materially affected by the US election, the number is up 12 percent.
Total trading volumes amounted to $747.4 billion, which is the highest number since October 2014. The metric is higher by 6 percent when compared to the previous month 2017 and by 12 percent when compared to the same month last year.
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While volatility remained low, substantial two-way interest underpinned trading volumes in November. The figures across major trading venues are looking upbeat amid increasingly tight ranges for FX majors.
Trading during the month was led by the US dollar and the British pound in the final days leading into a critical risk event. The prospects for a tax reform on Capitol Hill triggered a hopeful rally in the dollar early on, but brisk European growth numbers and the prospective break in Brexit negotiations led the euro and the British pound higher towards the end of the month.
Japanese yen trading was influenced by mostly external factors with the reelection of Shinzo Abe cementing the Bank of Japan’s QE policy.