It was another record month after the previous record month, and each one seemed to get bigger than the last. FXSpotStream LLC, the aggregator service of LiquidityMatch LLC, today revealed another unprecedented monthly volume record last month, besting the previous record set back in February.
During the month of March 2020, FXSpotStream reported an average daily volume (ADV) of $62.3 billion, which represented a jump of 30 percent month-on-month from $47.8 billion reported back in February. Across a yearly interval, the ADV metric in March reflected an advance of 65 percent.
March 2020 saw a total of 22 trading days, compared to 20 days in the month prior. In terms of total volumes at FXSpotStream, the last month showed $1,372 billion, which was 43 percent higher month-on-month from $956 billion in February 2020.
This number is almost double that of March 2019 when the FXSpotStream users transacted $792 billion, and it was also the first time to cross the $1 trillion milestone in the group’s nine-year history.
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FXSpotStream got off to a strong start as the financial markets started off the new calendar year in high gear, with a multitude of factors helping steer volumes across several venues. These difficult conditions could become increasingly common as investors fear the impact of the coronavirus outbreak and a war of price oil between the Russians and the Saudis, which pumped up FX hedging trades.
With nobody has a clue so far, other institutional FX platforms, including Cboe FX, CLS, and Thomson Reuters, are also expected to report never before seen trading activity. The secular trend of rising FX volumes will stay into play in April as global markets remain hostage to developments involving the coronavirus with the volatility of swings is driving unprecedented growth that rank with any past market crises.
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.