EBS FX Volumes Bounce Off 2016 Lows, Highlighting Strong September

Treasuries and FX volumes each notched sizable gains in September, easily besting their August counterparts.

ICAP, a UK-based voice and electronic dealer broker and provider of post trade risk services, has reported its latest compilation of monthly statistics and volumes covering its electronic foreign exchange (FX) platform EBS for the month of September 2016.

The latest statistics saw FX volumes bounce off their 2016 lows, en route to a successful month of September. The return of volatility to worldwide markets helped spark volumes growth that had been bogged down in tranquil summer trading months, according to an ICAP statement.

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EBS’ September 2016 FX volumes were finally able to get back on track in September, showing the first signs of life since June – which were heavily influenced by the Brexit referendum. The latest figures at EBS helped shore up its recent decline in volumes, posting a value of $81.7 billion during September 2016.

Comparing this figure on a MoM basis, the latest EBS’ FX volumes in September reflect a growth of 20.1% MoM from $68.0 billion daily in August 2016. However, September’s volumes were still lower than EBS’ September 2015 reading of $89.4 billion, which related to a YoY loss of -8.6%, illustrating the challenges faced in 2016.

The overall landscape in FX markets was largely changed in September, with markets finally receiving some direction from the US Federal Reserve, as the central bank abstained from hiking rates during the month. The volatility of what followed helped instigate more trading on EBS, which looks to continue its heightened volumes activity heading into the year end.

Finally, ICAP’s US Treasury activity during September 2016 was also on the ascension, falling to $154.1 billion from $142.1 billion in August 2016, or 8.4% higher MoM. The growth was erased over a YoY basis, falling tepidly off a September 2015 figure of $157.4 billion or -2.1% YoY.

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