Thomson Reuters (NYSE:TRI) said that financial market turbulence in February has kept FX traders busy, boosting volumes along with volatility. Price swings in the $5-trillion a day foreign exchange market jumped to fresh multi-year highs last month.
Volatility is back to FX markets after a subdued Q4 2017, which was one of the calmest quarters in more than eight years. 2018 started off on a promising note, and the first two months were characterized by a number of influential factors across global markets, including interest rates and fiscal policies speculation in both the US and Europe, which ultimately helped spark volatility.
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After three straight quarters of muted results, Thomson Reuters had a wild start to the new year, and that appears to have translated into record-breaking trading volumes across its foreign exchange business.
In particular, Thomson Reuters saw a total average daily volume (ADV) of its foreign exchange (FX) products, including spot, forwards, swaps options and non-deliverable forwards (NDF), coming in at $463 billion in February 2018. The figure represents an increase of 7.2 percent month-over-month from $432.1 billion in January 2018, which was also a record month. It has also outpaced the trading turnover from the same month a year ago, marking a gain of 37 percent year-over-year.
Thomson Reuters also successfully onboarded more buy-side clients and liquidity providers to its enhanced Multilateral Trading Facility (MTF), post-MiFID II implementation, the company said.