Foreign exchange trading volumes rose to a record high in August across FXSpotStream LLC platforms, data showed on Wednesday, as a rise in volatility encouraged more buying and selling of currencies.
During August 2019, FXSpotStream reported an average daily volume (ADV) of $43.2 billion, which represented a jump of 19 percent month-on-month from $36.2 billion reported back in July 2019. Across a yearly interval, the ADV metric in August 2019 reflected an advance of 53 percent from year-ago levels when weighed against $28.3 billion in August 2018.
The figure is a new all-time high, besting the previous record set back in June 2019 at $42.2 billion.
The numbers released by FXSpotStream, the aggregator service of LiquidityMatch and a major institutional platform in the FX market, follows a huge surge in trading at Japanese retail broker GMO Click, with its August volumes up to $860 billion to mark its best-ever month in two years.
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Cboe FX, CLS, and Thomson Reuters to follow suite
Other institutional FX platforms including Cboe FX, CLS, and Thomson Reuters are also expected to report a big rise in volumes of last month as volatility picked up and the secular trend of rising FX volumes comes into play again.
August 2019 saw a total of 22 trading days, compared to 23 days in the month prior. In terms of total volumes at FXSpotStream, August 2019 showed $951 billion, also representing a new record for the platform and was higher by over 11 percent from the previous record set back in June at $845 billion.
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.