FXSpotStream LLC, the aggregator service of LiquidityMatch LLC, has built on its robust performance throughout 2018, setting another monthly volume record for September 2018, en route to fresh highs in the group’s seven-year history.
FXSpotStream got off to a strong autumn as political turbulence in Italy, Fed’s policy updates and a raft of new US trade tariffs increased activity on foreign exchanges, helping steer volumes across several venues.
Cboe FX, another big player in the institutional FX market, on Monday reported a three percent rise in average volumes in September. Other trading platforms including CLS and Thomson Reuters are also expected to report a big rise in volumes of last month as volatility picked up.
During September 2018, FXSpotStream reported an average daily volume (ADV) of $31.9 billion, which represented a jump of 12 percent month-on-month from $28.3 billion reported back in August 2018. Across a yearly interval, the ADV metric in September 2018 reflected an advance of 33 percent.
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The figure is a new all-time high, besting the previous record set back in June 2018.
September 2018 saw a total of 20 trading days, compared to 23 days in the month prior. In terms of total volumes at FXSpotStream, September 2018 showed $637.7 billion, which was slightly lower month-on-month from $652.4 billion in August 2017.
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 twelve 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, and UBS.
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.