Euronext, which operates the biggest pan-European exchange, had an aggregated monthly FX turnover of $484 billion in June 2020, up 18 percent from $409 billion in May. At Cboe, parent of the Chicago Board Options Exchange as well as institutional FX platforms in the US and abroad, there was also a significant jump in trading last month.
Euronext FX, formerly FastMatch, is reporting an average daily volume on its spot foreign exchange market at $22 billion, up 13 percent compared to May’s $19.5 billion. On a yearly timetable, the figure is almost unchanged but the total turnover was up 25 percent from $385 billion reported back in June 2019.
That marks the second best reading for Euronext FX’s volumes after the platform posted a record $839 billion in March 2020. At one point this month, Euronext had a record day of FX trading with 54.6 billion worth of currency trades changing hands on March 9. The trading at this time was driven by investor fears that the coronavirus may put a damper on the world economy.
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Brokers benefit from boom in trading
But following the boom in activity seen at major FX trading venues in March, the institutional ECNs were in a sea of red in April and May. Almost all institutional platforms reported 50 percent drops in their monthly volumes.
Euronext’s numbers also followed stronger trading volumes from rival foreign exchange venues. So far this month, Cboe FX and FXSpotStream have reported new peaks for activity, and all platforms have recorded strong month-on-month growth.
That wave of activity at the exchanges is also pushing up trading brokers’ stocks, despite the downward pressure on the overall stock market. For instance, NASDAQ-listed Interactive Brokers saw its share price rising from a five-week low hit at $40 last week to close at $43.25.
Most retail trading firms, including privately-held ones such as Robinhood, were also likely benefited from the boom in activity, reflected at least by their platform’s outages.