FXSpotStream LLC, the aggregator service of LiquidityMatch LLC, built on its robust performance in 2018, with trading volumes setting the second highest ever on record in May.
During May 2018, FXSpotStream reported an average daily volume (ADV) of $28.06 billion, which represented a jump of 14 percent month-on-month from $24.6 billion reported back in April 2018. Across a yearly interval, the ADV metric in May 2018 reflected an advance of more than 60 percent.
Indeed, May’s volumes are lower 2.8 percent off from the company’s record peak which was recorded at $28.8 billion back in February 2018.
FXSpotStream got off to a strong month as the financial markets started off May in high gear, with a multitude of factors helping steer volumes across several venues.
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May 2018 saw a total of 23 trading days, compared to 21 days in the month prior. In terms of total volumes at FXSpotStream, May 2018 showed $645.4 billion, which was higher by 25 percent month-on-month from $515.6 billion in April 2018.
Unique, established business model
FXSpotStream is a wholly owned subsidiary of LiquidityMatch LLC and was created as a cost-effective platform, which is offered on a commission-free model for buy-side firms to tap pricing from banks using a multi-dealer aggregating platform.
The group started the streaming aggregation business in 2011 with just a spot FX API and 6 liquidity providers, but now utilizes liquidity from a total of 13 leading global banks – BofA Merrill Lynch, Bank of Tokyo-Mitsubishi UFJ, BNP Paribas, Citi, Commerzbank AG, Credit Suisse, Goldman Sachs, HSBC, J.P. Morgan, Morgan Stanley, Standard Chartered, UBS and State Street.
FXSpotStream’s offering is a client to bank platform, with each liquidity taker required to create individual credit relationships with participating banks. This differs from other multi-dealer platforms such as FX ECNs like Hotspot and EBS Markets that operate with centralized order book systems for their participants.