FX Volumes Boom at Refinitiv, ADV Hits New Record at $540 Billion

Foreign exchange trading volumes on Refinitiv’s platforms jumped by more than 20 percent in March from a year earlier, the company said on Monday, its second consecutive solid month as corona-led Volatility Volatility In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders Read this Term sparked more trading.

Amid concerns over the economic impact from the Coronavirus Coronavirus The outbreak of Covid-19 or Coronavirus in early 2020 has since redefined the financial services industry. Brokers have been forced to quickly adapt to several changes, both positive and negative.This includes the FX industry, which saw surges in volumes across the retail and institutional space in Q1 2020. This trend can be explained by an outflow of volatility, coupled with countries taking major moves to stabilize their respective economies.In conjunction with uncertainty caused by the virus, The outbreak of Covid-19 or Coronavirus in early 2020 has since redefined the financial services industry. Brokers have been forced to quickly adapt to several changes, both positive and negative.This includes the FX industry, which saw surges in volumes across the retail and institutional space in Q1 2020. This trend can be explained by an outflow of volatility, coupled with countries taking major moves to stabilize their respective economies.In conjunction with uncertainty caused by the virus, Read this Term outbreak, there was a brighter side for FX platforms, which attracted a rush of business as investors scrambled to protect portfolios.

The former Financial and Risk business of Thomson Reuters today reported that the average daily volumes (ADV) of currency trading were $540 billion last month on the company’s main FX trading services. The ADV figure, which includes spot, forwards, swaps options and non-deliverable forwards (NDF), is the highest ever, and also surpasses the previous record set back in the same month a year ago at $465 billion, namely up 16 percent year-over-year.

FX volumes jump

Of the $540 billion figure, $141 billion was FX spot, representing a 37 percent increase over the monthly interval when compared to $103 billion in February 2020. Over a yearly basis, the spot turnover outpaces its counterpart of March 2019, which came at $97 billion.

Other transaction types – including forwards, swaps, options and non-deliverable forwards (NDFs) – averaged $399 billion daily, higher 15 percent from $347 billion the previous month.

The rise in FX volumes will be particularly welcomed by Refinitiv, which had struggled with calm financial markets squeezing their metrics in recent months. Following a bumpy period in geopolitics throughout 2019, the jump in the Q4 volumes has been comparatively modest in relation to the first half.

Refinitiv’s figures reflect the trend observed in the monthly figures from many of the major trading platforms which have seen record-breaking volumes during the past two months. However, given its position as a major trading hub for the wholesale market, the company provides one of the most comprehensive snapshots of activity.

So far this month, Cboe FX, FXSpotStream, and Integral have reported new peaks for activity, and all platforms have recorded strong year-on-year growth.